Debt-to-income ratio
The share of income devoted to repaying credit, insurance included. The HCSF recommends not exceeding 35% including insurance, with a framed margin of flexibility. It is one of the first acceptance filters for a file, always to be read alongside disposable income.
Key points
- The share of income devoted to repaying credit, insurance included.
- The HCSF recommends not exceeding 35%, with a framed flexibility margin.
- It is one of the first acceptance filters for a bank file.
- It is always read alongside disposable income, not in isolation.
Frequently asked questions
How is the debt-to-income ratio calculated?
You divide all monthly credit charges (installment including insurance, alimony, other loans) by the net income the bank retains, then multiply by 100. The income counted depends on its stability: a permanent contract is taken at 100%, rental income often at 70%.
Can you borrow beyond 35%?
Yes, within a limit: the HCSF lets banks derogate from the cap for a fraction of their lending, in priority for main residences and first-time buyers. A comfortable disposable income and solid assets make it easier to use this flexibility margin.
What is the difference between debt ratio and disposable income?
The debt ratio is a percentage; disposable income is an absolute amount, what remains once all charges are paid. A high-income household can bear a 38% ratio with a comfortable disposable income, where 33% would be risky for a modest budget.
In practice
For €4,000 net income and a €1,300 installment including insurance, the debt ratio comes to 32.5%, under the HCSF threshold, leaving room for an existing car loan.
Put it into practice with CourtImmo
See how CourtImmo software helps brokers on this topic:
Official sources
- Getting a mortgage (debt-to-income ratio) · Service-Public.gouv.fr
- The annual percentage rate (APRC) · Service-Public.gouv.fr
- Mortgage credit (official guide) · Service-Public.gouv.fr