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by the Meilleurtaux editorial team
The maximum rate above which a bank can lend is about to touch a symbolic bar. As of March 1, 2023, the usury threshold is set at 4% for mortgages over a period of 20 years and more.
Further increase in wear rate. In accordance with the provisions taken in January 2023 by the Banque de France, the maximum threshold above which banks can lend has been revised monthly since February 1. The new wear rates for the month of March were published in the Official Journal this Sunday.
The 4% threshold reached As of March 1, the usury rate for mortgages over a period greater than or equal to 20 years reaches a symbolic bar: it is set at 4%, against 3.79% in February. For credits with a duration of between 10 years and less than 20 years, it is set at 3.87%, and for those with a duration of less than 10 years, at 3.67%. it’s about the third revision since January 1.
As a reminder, the Banque de France has decided to re-examine the wear rates each month, rather than each quarter and this until July 1st. As the daily Les Échos explains, this measure aims in particular to unlock access to credit. And for good reason, for several months banking establishments have been forced to limit their production of loans, so as not to lend at a loss. According to the latest CSA/Crédit Logement observatory, the production of real estate loans fell by 20% in 2022.
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Some folders may still be blocked
Still according to this same source, brokers believe that this measure will make it possible to streamline the granting of credit. Nevertheless, there is a perverse effect to this revision. Some less well-off households are in fact likely to have more difficulty in borrowing. To respect the maximum debt ratio limited to 35% imposed by the regulations, these borrowers find themselves forced to go into debt over a longer period.
The problem is that the borrowing rates offered by the banks are higher over 25 years than over 20 years, even though the rate of wear does not change over these durations. Result: some files may therefore once again be blocked.
At the same time, interest rates continue to rise. According to estimates, they could well reach 4% as early as the summer of 2023.
