The wear rates in effect for the first quarter of 2022 have just been published and are up slightly compared to last quarter. What to facilitate the access of certain households to real estate credit.
After months of decline, usury rates finally stop their fall at the turn of the year 2022, according to the opinion of the Official newspaper published this December 26. The wear rates are set every 3 months by the Banque de France and designate the maximum rate above which a bank is not allowed to lend.
They are calculated on the basis of the average annual percentage rate (APR) applied by banks for loans granted to their customers during the previous quarter, this average then increasing by a third.
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Fragile borrowers penalized
Originally, the purpose of setting wear rates was to protect borrowers faced with excessively high rates. However, in a context of low interest rates, the measure deters banks from lending certain fragile households.
The explanation is simple: the bank values for each loan a risk level. In the case of a fragile household, this risk is higher and the bank must, to compensate for the risk of default, apply a higher interest rate. We are talking about cost of risk. If the risk is high, but the bank cannot apply a sufficient rate (because this would exceed the usury rate), she will refuse the loan.
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In the fourth quarter of 2021, wear rates had reached a historically low level, after several consecutive declines. The thrill of the first quarter of 2022 therefore heralds, in the absence of a trend reversal, a stabilization of wear rates. This is good news for fragile borrowers, who are more likely to access a loan.
In detail, the wear rate applicable from January 1, 2022 is 2.44% for mortgage loans with a term of between 10 years and less than 20 years, i.e. a very slight increase compared to the fourth quarter of 2021 (+ 0.01%). The wear rates of mortgage loans over 20 years and bridging loans remain stable.
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Usury thresholds for mortgage loans
- Fixed rate loans of less than 10 years: usury threshold of 2.44% as of January 1, 2022 (compared to 2.43% during the fourth quarter of 2021)
- 10 to 20 year fixed rate loans: 2.4% (compared to 2.39%)
- Fixed rate loans for 20 years and over: 2.41% (stable compared to Q42021)
- Variable rate loans: 2.33% (compared to 2.29%)
- Bridging loans: 2.88% (stable compared to Q42021)
Usury thresholds for consumer loans
- Loans of 3000 euros or less: usury threshold of 21.17% on January 1, 2022 (compared to 21.16% in the fourth quarter of 2021)
- Loans between 3000 and 6000 euros: 9.8% (compared to 9.89%)
- Loans exceeding 6,000 euros: 4.93% (compared to 4.99%)