2023-06-29 11:22:00
The borrowing ceiling for new loans will be raised by almost half a point. It was until now 4.68%.
By HR with AFP The wear rate will be raised to 5.09%. © Richard Villalon / MAXPPP / BELPRESS/MAXPPP Published on 06/29/2023 at 1:22 p.m.
July 1 will mark a new milestone for the attrition rate. The latter, which sets the borrowing ceiling for new loans, will reach 5.09% at the beginning of the month. This will concern fixed rate mortgages, for a period of 20 years or more. This new rate was set by a decree published this Thursday, June 29 in the Official Journal.
Set by the central bank on the basis of the rates applied by the banks, and intended to protect the borrower against over-indebtedness, this ceiling rate includes all the costs of a mortgage, including the credit rate, the insurance borrower and any brokers’ commissions. It is 4.68% so far.
Previously calculated quarterly, the usury rate has been updated monthly since the beginning of the year, as banks and brokers deemed the previous system too slow to adapt to the rapid tightening of monetary policy, and therefore to rising rates. Scheduled to last until July, this monthly payment was finally extended until the end of the year.
All wear rates increase
There are as many wear rates as there are types of credits. Thus, for a loan of less than 10 years, the maximum legal rate of a mortgage will increase in July to 4.11% (against 3.99% currently) and that for a loan between 10 and 20 years to 4.84%. (compared to 4.45%). The passage of this symbolic threshold of 5% comes as the real estate sector finds itself in a situation that has not been seen for years, between rising rates and a slowdown in the market.
READ ALSOReal estate: the reasons for the slowdown
However, having a true idea of the state of the market is a difficult task, as the vocabulary and figures put forward by brokers, bankers or regulators vary. First factual element, credit rates have risen sharply in recent months, from 1.12% in January 2022 to 2.87% expected in May 2023, according to the latest estimate from the Banque de France, which has a considerable impact on the cost of credit.
Second element subject to controversy: the volume of loans granted. In free fall for bankers, but in the normalization phase after exceptional years, repeats the Banque de France.
Third parameter and not the least: the price of real estate is starting to fall in the old for the first time since 2015, according to the Notaires-Insee index which refers.
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