The new usury threshold scales applicable to the second quarter of 2022 have been published and are generally stable (except for loans under 10 years) compared to the rates in force since the beginning of the year. They thus remain at historically low levels, which continues to penalize certain borrowers because they correspond to the annual percentage rate of charge (APR) maximum above which it is prohibited to grant a mortgage. However, the rates offered by the banks have risen quite sharply since the beginning of the year and could increase further in the coming months. Even at the same usury threshold, more and more borrowers risk being refused financing.
- As of April 1, the usury rate will drop from 2.44% to 2.51% for loans of less than 10 years.
- For loans with a duration between 10 years and less than 20 years, the usury threshold changes from 2.40% to 2.43%.
- For loans over 20 years, that is to say the durations which are most often affected by refusals of mortgages linked to the rate of wear, the threshold does not change practicing by evolving from 2.41% at 2.40%.
Initially planned to regulate the level of credit rates and avoid abuse, the wear rate is calculated by adding one third to the average effective rate charged by banks over the period (the previous quarter). Are included in this maximum rate: the nominal rate of the credit, the rate of the credit insurance, the costs related to the guarantee, the fees and any administrative costs. In the first quarter of 2022, this rate was for example 1.80% over 20 years.
The weight of borrower insurance
Certain categories of borrowers remain more penalized by the usury rate, in particular the riskiest in terms of health (seniors, aggravated risks) whose rate frequently exceeds the usury threshold due to the very high weight of insurance. in the TAEG. Modest borrowers can also be affected because of the rate differentials applied by banks according to income and contribution.
Rate differences depending on the profile
Over 20 years, the nominal rate of a loan can for example range from 1% to 2% depending on the profile of the borrower, with insurance rates between 0.25% for the youngest and 0.50% for those over 50, not to mention the cost of the deposit and the administration fees which can go up to €1,000. Given these significant differences, it is clear that some borrowers obtain proposals above the usury rate (2.40% from April 1) and are therefore not financeable. Opting for delegated borrower insurance, often cheaper than those offered by banks, remains a solution to bring your APR below the wear rate.
“Wear rates are currently totally decorrelated from the reality of the market. As proof, over 20 years and more, the most common credit terms, the wear rate has fallen by 20 points in one year, from 2.60% to 2.40%, even though credit rates increased by 15 points. In April 2021, we borrowed on average at 1.25% compared to 1.40% currently, with a rate of wear that is now lower. It is therefore understandable that many borrowers are in fact excluded from credit,” analyzes Sandrine Allonier, director of studies for the real estate loan broker Vousfinancer.
|Source: Banque de France and Official Journal|
|Fourth quarter 2021||First quarter 2022||Second quarter 2022|
|Loans with a term of less than 10 years||2.43%||2.44%||2.51%|
|Loans with a duration between 10 years and less than 20 years||2.39%||2.40%||2.43%|
|Loans with a term of more than 20 years||2.41%||2.41%||2.40%|
Fortunately, taking into account the rise in borrowing rates in the next scales for the third quarter of 2022 should finally allow a real rise in the usury thresholds from July 1.