DECO says interest subsidies are “not enough” and is suggesting a “slowdown” on fee growth.

Deco Proteste believes the government’s interest rate subsidy model is “insufficient” and proposed an alternative scheme this Thursday that halts interest rate increases at 3% and, avoiding taxpayer costs, puts aside capital until funding runs out.

“In addition to very strict access criteria that exclude an excessively large number of families, the planned support proves to be inexpressive in installments that have increased by several hundred euros,” Deco Proteste, which sent an open letter to the government, said in a statement. and parliamentary groups proposing to suspend benefit increases.

The installment brake model favored by Deco Proteste states that “From the moment the interest rate applied to the contract rises three percentage points above the rate stipulated in the contract at the inception of the loan, loan holders can activate the installment brake . and keep it constant in the following months.”

Thus, the maximum increase scenario of 3% is realized, which currently approved loans are already required to take into account when concluding contracts, although it is not included in the European Standardized Information Sheet (FINE),” says Deco Proteste.

When the installment brake is activated, the loan term is automatically adjusted. However, knowing that “many families will have already renegotiated contracts by this time to extend contracts up to the age limit of 75 years of the holder”, for “these cases” Deco Proteste offers “capital deferral, which allows you to maintain a constant contribution and defer the payment of outstanding capital.”

The missing capital can begin to be paid “when the Euribor starts to fall below the 3% limit” – then “the installments on these contracts remain constant and will not reflect any reduction in interest”, accelerating the amortization of the loan.” residual value” that was sent on time.

This proposal does not require financial intervention from the state. So taxpayer efforts are no longer directed towards supporting mortgage payments for high-effort families,” he says.

In addition to the proposal to introduce this “backup brake”, Deco Proteste “continues to require the IRS mortgage interest deduction to be extended to all loans,” and currently only interest deductions on installment loan agreements are deductible. concluded until 2011.

It also proposes “a temporary reduction in the municipal property tax (IMI) for families with a high work rate and the definition of a base index for fixed-rate mortgages, which will make housing offers more competitive. banks”.