The Bank of France confirmed on Thursday that the review of usury rates would take place again every quarter from the start of 2024, after a year in 2023 when these ceiling rates on loans, particularly real estate, were revised every month.
The monthly calculation of wear rates is over. Between January and December 2023, the usury rate, this all-inclusive rate above which a bank cannot lend, went from 3.57% to 6.29% for the longest real estate loans (20 years and over). An increase of 2.7 percentage points, beneficial for borrowers and banking institutions alike.
Previously calculated every quarter, the usury rates have been updated every month since the start of the year, banks and brokers judging the previous system too slow to adapt to the rapid tightening of monetary policy. Scheduled to last until July, this monthly payment was finally extended until the end of the year.
This measure allowed banks to better support the rise in rates and gave them greater room to maneuver to adjust their rates, the Bank of France underlined in a press release.
This exceptional monthly payment no longer has to be
On the side of the brokers, the decision to pay the monthly wear rate was obviously welcomed. Since January, usury rates have increased by more than 2.5 points, with the effect of limiting the number of files refused due to exceeding this ceiling rate, which is very positive, analyzed Julie Bachet, general director. de Vousfinancer, in a press release in December.
But according to the Banque de France, this exceptional monthly payment is no longer necessary, while the European Central Bank (ECB) left its rates unchanged in December for the second time in a row, enough to suggest the end of the cycle of rate increases in Europe.
At the end of November, the Banque de France had already opened the door to a return to the quarterly calculation method. From now on, interest rates are tending towards stabilization: this is true of the ECB rates as well as those of the Livret A, maintained at 3%. It is therefore justified to escape exceptional circumstances and return to the quarterly adjustment provided for by law, the central bank indicated in a statement to AFP.
On Thursday, she judged that the return to the quarterly calculation method should contribute to the trend towards the stabilization of real estate credit scales, and give better visibility to borrowers.
Real estate rates: what will change for your credit in 2024