The rate of wear for a loan of 20 years or more has been raised to 3.05%, which should make it possible to resolve the vast majority of blocking situations.
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© RICCARDO MILANI / Hans Lucas / Hans Lucas via AFP
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Bgood news for people looking to buy real estate: the rate of wear – or maximum legal rate of mortgage – will jump to 1er october. However, the lower it is, the more difficult it is to borrow, since the wear rate caps all the costs of a mortgage loan: credit rate charged by the bank, possible commission from brokers, borrower insurance , with the aim of protecting individuals from abusive borrowing terms. The Banque de France thus announced that the rate of wear was going to increase from 2.57% to 3.05% for a loan of 20 years or more.
“The application of the formula provided for by law” leads to “a well-proportioned and more marked increase than last June”, indicates the Banque de France in a press release.
A strongly criticized ceiling rate
The rate is calculated each quarter by the Banque de France, which takes into account the average rates charged by banks over the last three months, increased by one third. There are as many wear rates as there are types of credit. However, these ceiling rates are under fire from critics, in particular from brokers who see them as a barrier to access to real estate credit. One of their unions had even gone so far as to demonstrate on September 20 in front of the headquarters of the Banque de France in Paris, to ask the central bank to make a gesture.
The Banque de France does not consider “neither desirable nor necessary […] an exceptional increase” in usury rates, whose role “is to protect borrowers”, she specifies.
This increase is “highly anticipated” by the profession, explained earlier today the president of the Cafpi broker network, Olivier Lendrevie, for whom “a wear rate of 3% would make it possible to resolve the vast majority of blocking situations observed those last weeks “. It will also result in making new mortgages more expensive for individuals.
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The rise in interest rates for new mortgages has been noticeable since the spring, with the banks passing on the tightening of the monetary policy of the European Central Bank (ECB), via an increase in its key rate, in order to combat inflation. The average rate measured by the Banque de France for new mortgages was for example 1.45% in July, according to its latest figures, against 1.12% at the end of last year. This is the nominal rate, to which are added all the costs associated with obtaining credit. However, this increase did not slow down outstanding loans. In a newspaper interview South West at the end of August, the Minister of the Economy, Bruno Le Maire, indicated that the real estate market remained “dynamic”.
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