Real estate credit: what the increase in the wear rate changes for borrowers

“A well-proportioned and more marked increase than last June”: it is in these terms that the Banque de France described, on September 28, the increase in the usury rates applicable to the last quarter of 2022. These new maximum rates , which vary according to the type and duration of the credit, were published on September 29 in the Official Journal, thus confirming their entry into force from September 1^er october.

In detail, the wear rate goes from 2.60 to 3.03% for a mortgage with a duration of less than 20 years. Beyond this, the new maximum stands at 3.05%, after 2.57% on 3^e quarter of 2022. This historic increase was expected from banks and brokers. The latter reported since the summer an increase in the refusal of files following the rapid rise in interest rates. This had not spread sufficiently to the usury rates, thus causing the legal maximum rates to be exceeded once the borrower’s insurance, the administration and guarantee fees were added. Banks are not allowed to lend at higher rates.