Previously to the Source and Skills of Borrowing

On 1 January, the French will adopt a new method of sampling of their income tax. This system already exists in many neighboring countries.

 

A disruption in the settlement of income tax

A disruption in the settlement of income tax

For the French, the withholding tax (PAS) will shake up their habits a little. First, on their payslip, the amount paid will be lower. This does not mean that their compensation will go down. However, the portion devoted to the payment of income tax will be released from the salary affected.

To avoid becoming the government responsible for the decline in purchasing power, Lercy took the lead. Thus, two lines will now be displayed on the payslip: the net salary to pay before tax and the net payable. In this way, the employees will be able to note that their remuneration has not been modified. However, worries weigh on the world of mortgage lending.

 

What salary will be taken into account for a mortgage?

What salary will be taken into account for a mortgage?

As a reminder, before considering a purchase, individuals must know their debt capacity. For this, the future monthly payment of the credit must not exceed 33% of the income. Beyond that, the rest of a household’s life may be too small to balance the budget.

The revenues are therefore taken into account by the bank to assess the debt capacity. But with the PAS, what will be the income taken into account? Because if the bank relies on the net to pay, the borrowing capacity will automatically decrease. As the income is lower, the loan will be heavier to bear. The borrowed capital will therefore be revised downwards. However, in order not to penalize the borrowers, the banks will be able to take into account the net salary to be paid before tax. In this case, the borrowing capacity will not be impacted.

On the other hand, since the actual salary is lower, the bank will take a slightly higher risk. For now, the banks have not decided the question but it must be believed that they will not take the risk of missing some of their potential customers.

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