Real estate loans: what awaits borrowers at the end of September with the revision of the wear rate

Real estate loans: what awaits borrowers at the end of September with the revision of the wear rate

The Banque de France (BdF) will apply “the existing rules” for the next revision of the usury rate, at the end of the month, which will lead to a “well proportionate” increase in this rate for the last quarter of the year. year, the governor of the French central bank, François Villeroy de Galhau, said on Friday.

“What we are going to do, at the end of this month, is to apply the existing rules which will lead to a well-proportioned increase in this ceiling rate,” he said on RTL.

“This will make it possible to settle the cases of more difficult access to mortgages than there have been in recent weeks”, added François Villeroy de Galhau, recalling that this subject had been the subject of discussions with the Minister. of Economy and Finance, Bruno Le Maire, and representatives of French banks.

Designed to protect consumers from excessively high rates and limit the risk of over-indebtedness, the usury rate corresponds to the maximum legal interest rate that banks can charge when they grant a loan, by integrating the basic interest rate. , administrative fees and any commissions, as well as the cost of borrower insurance and mandatory guarantees.

The overall effective annual interest rate (APR) of a loan cannot therefore be higher than the wear rate calculated each quarter by the BdF.

Some professionals had called in recent weeks for an exceptional accelerated rise in the usury rate, judging that in the context of rising interest rates, this ceiling rate was now too low and would be the cause of many rejections of files, including for people whose financial situation is solid.

On July 1, the calculation made by the Banque de France, for example, set the wear rate at 2.57% for fixed-rate loans of 20 years and more for the third quarter.

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