Hausse des taux d'usure

Increase in applicable usury rates since July 1, 2022 – Ace Credit

The Banque de France has just revised its interest rates for the next quarter. 1 . agoVerse In July, the limits that set the limit beyond which a bank cannot lend are lifted.

Adjust wear rates upwards

Finally, the attrition rates in the third quarter of 2022 were raised by 15 to 20 basis points. These rates correspond to the limit that credit institutions should not exceed when granting a mortgage or consumer credit. Thus, the annual percentage rate or annual percentage rate offered by the bank should remain below the cap rate. As a reminder, the APR includes all credit costs including the nominal rate offered by the bank as well as loan insurance, collateral fees, etc. in 1Verse July, The new wear rate went from 2.40% to 2.57% for loans of 20 years and moreIt rose to 2.60% for 10-20 year mortgages. A slight increase in usury rates breathes new life into borrowing from candidates, but is considered too low for players in this sector.

Consequences of some borrowers

These wear thresholds are initially intended to protect the borrower from potential abuse. However, when ceiling rates are low, they do not reflect the realities of the market and are therefore not in the interest of the borrowers. This is especially the case for specific profiles such as seniors or risky profiles who may be penalized for higher borrower insurance costs. The annual interest rate (APR) quickly exceeds the usury threshold, therefore, even if the credit application meets the requirements of personal contribution, solvency or debt ratio, the loan is rejected. Moreover, in the event that prices rise as is currently the case, Revised erosion rate every quarter increases less quickly than interest rates. The wear rate is already calculated by the Bank of France from the average rate applied by credit institutions in the previous quarter, to which a third is added. Thus, the tapering threshold applied to the second quarter of this year reflects the situation in January 2022. The difference is significant. Especially at present, with the rise in the nominal credit rate, the erosion rate is quickly reached. To avoid this phenomenon known as the “scissors effect,” the government announced that it was studying a new method for calculating the rate of wear.

No change in the method of calculating the wear rate

With very low interest rates and credit rates increasing, the ability to borrow goes down. The usury threshold hinders access to credit due to the method of its calculation, which is still not compatible with the market. And while the government said it was ready to reform this method of calculation to take into account the impact of higher credit rates on usury rates, it finally backed down. As Percy explains, after consulting with the High Council for Financial Stability (HCSF): “There is no doubt about changing the method of calculation that remains protective of borrowers.”. If the banks consider this review of the usury rate insufficient and warn of the effects of exclusion, the tone on the part of the Banque de France is more reassuring. François Villeroy de Gallo, Governor of the Bank of France, emphasized that these rates do not penalize real estate financing It also announces a steady increase in borrowing rates in the coming months. In this context, it is recommended not to wait for credit application file consolidation. It is more advisable than ever to use a mortgage expert in order to negotiate the best financing solution according to the nature of the project and the profile of the borrower.

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