Debt Consolidation And The 35% Rule: What Changes For Your Simulation In 2026.

The High Council for Financial Stability (HCSF) decided in March 2026: the rules for granting mortgage loans remain unchanged. The debt-to-income ratio remains capped at 35% of income, including insurance. If you are juggling multiple loans and considering consolidating them, this decision has direct consequences on your project, especially as you may be about to start a simulation... but not necessarily the ones you might expect. We suggest taking stock before you proceed.

The debt ratio, a key figure before any simulation.

Before comparing anything, you need to know your debt-to-income ratio, which is the portion of your income dedicated each month to repaying your loans. This is the starting point for any consideration of consolidating debts, and the first instinct is often to fill out an online simulation form, like the one offered by Partners Finances. Free and without obligation, this tool does not provide an immediate numerical offer: it gathers information about your situation (current loans, income, expenses) to prepare for a discussion with an advisor, who will then review your file.

To calculate it yourself, it's not complicated: add up all your monthly payments (mortgage, car loan, revolving credit...), divide the total by your net income, and then multiply by 100.

Note: this first step does not replace the study of your file. Only an advisor's analysis of your situation leads to a detailed and personalized proposal.

What does the 35% rule say in 2026?

Issued at the end of 2019 as a simple recommendation, the HCSF standards became legally binding for banks as of January 1, 2022. They are based on two pillars:

• a maximum debt-to-income ratio of 35% of net income, including borrower insurance
• a repayment period capped at 25 years (or up to 27 years in the case of off-plan purchases or renovations representing at least 10% of the total cost of the operation)

Despite repeated requests from industry professionals, the High Council confirmed in March 2026 the maintenance of this framework, without any easing. This decision coincides with a relaxation of mortgage rates, stabilized around 3% in early 2026.

However, banks retain some flexibility: they can deviate from these criteria for 20% of their new credit production, provided that most of this flexibility is reserved for the purchase of primary residences and first-time buyers.

Is debt consolidation subject to this rule?

This is where many borrowers go wrong. It deserves some explanation.

The 35% rule applies to the issuance of new mortgage loans. However, debt consolidation operations, just like renegotiations, are excluded from the scope of the HCSF decision. In practical terms, a household whose debt-to-income ratio already exceeds 35% is not automatically excluded from a consolidation. And this makes sense: the goal of the operation is precisely to bring this rate down to a more manageable level.

However, be careful, this exclusion does not mean that every application is accepted. Lenders are still required to assess the borrower's creditworthiness and closely examine the remaining disposable income, the stability of income, and the proper management of accounts. The regulator also encourages them to ensure that these operations genuinely improve the financial situation of the households involved.

How does a consolidation affect your debt-to-income ratio?

The principle of debt consolidation (also known as credit buyback) involves replacing all your existing loans with a single loan, resulting in one monthly payment, typically spread over a longer duration. To understand the motivations that may lead one to take this step, you can read our article explaining why to buy back a consumer loan.

Let’s take a purely illustrative example. A household receives €3,200 in net monthly income and repays:

• a mortgage of €880 per month
• a car loan of €270 per month
• a revolving credit of €140 per month

This totals €1,290 in monthly payments, which represents a debt-to-income ratio of about 40%. Under these conditions, it is impossible to finance a new real estate project within the framework set by the HCSF. If a consolidation operation reduces the single monthly payment to €990 (by extending the repayment period), the debt-to-income ratio drops to about 31%, below the 35% threshold.

Note: these figures do not constitute a promise in any way. The level of monthly payment obtained depends on the borrower's profile, the proposed rate, the guarantees, and especially the remaining duration on the loans being consolidated.

Reduced monthly payment: beware of the total cost of credit.

A lower monthly payment does not mean a cheaper loan; quite the opposite. By spreading the repayment over a longer period, you pay interest for more years, which increases the total cost of the operation.

These numerical details do not appear at the simulation stage, which remains a preliminary approach. It is in the loan offer, the document that the institution sends you once your application has been reviewed, that you will find them in black and white:

• the total repayment duration
• the APR (annual percentage rate)
• the total cost of the loan, including fees

On the side of additional fees, consider early repayment penalties on previous loans, processing fees, or guarantee fees... All elements to closely examine once the offer is received, to compare what can be compared and avoid turning your budget management into chaos.

What protections for borrowers in 2026?

Debt consolidation is a regulated operation under the Consumer Code. As a reminder, when the share of mortgage loans included exceeds 60% of the total amount of the operation, the mortgage credit regime applies to the entire operation. Below this threshold, the operation falls under the rules of consumer credit.

Important: consolidating your loans or taking out a new loan commits you and assumes that you are able to meet your repayments until the end of the contract. The law also prohibits requiring any payment from an individual, in any form, until the financing has been effectively released. Also keep in mind that the reduction in monthly payments allowed by a consolidation often comes with an extension of the repayment period and an increase in the total cost of the operation, with the extent of the reduction depending in particular on the remaining duration of the loans being consolidated. Finally, you benefit from a reflection period of 10 days when the operation falls under the mortgage credit regime, and a withdrawal period of 14 days when it falls under consumer credit, in accordance with current regulations.

Note Well

HCSF: the High Council for Financial Stability is the authority responsible for monitoring the French financial system and preventing the risks of household over-indebtedness.

Debt ratio (or effort rate): the portion of a household's net income dedicated to repaying its loans, including insurance.

Disposable income: the amount a household has each month after all its credit charges are paid. Banks examine this in addition to the debt ratio.

APR: the annual percentage rate includes interest, fees, and insurance. It is the benchmark indicator for comparing the actual cost of several offers.