A decree published this Friday in the official journal confirms the extension of the transitional measures on the calculation of wear. To take into account with less delay the rate increases applied by banks on mortgages, the usury thresholds are indeed calculated by the Banque de France each month since February 1, 2023 (and no longer quarterly) but this modification had only been fixed for a period of 6 months, ie until August 1st.
The decree extends this measure by 6 months, i.e. until January 1, 2024, as the Ministry in charge of Housing had undertaken to do at the beginning of June as part of the restitution of the work of the National Council for Refoundation.
The usury thresholds correspond to the maximum rates at which banks have the right to lend, by adding up the nominal rate, the borrower’s insurance, the application fees and the deposit. If they are too close to the nominal rates, they can block borrowers who are served with a loan refusal
5.09% for loans over 20 to 25 years
For the month of July, these thresholds marked a sharp increase, going from 4.45% to 4.84% for loans with a duration between 10 years and less than 20 years and from 4.68% to 5, 09% for loans over 20 to 25 years. The other side of the coin of a sharp rise in usury thresholds is that this opens the door to a significant impact on the scales of banks, some of which are still waiting for higher rates to lend more.
The monthly payment of the calculation of wear and tear thresholds until the end of the year should therefore contribute to the continued rise in real estate rates which have just exceeded 4% over 20 years and could, at the current rate of increase, reach 5% within a few months.