The Banque de France marks the return to the quarterly calculation of usury rates

The monthly calculation of usury rates, intended to support the increase in interest rates orchestrated by the European Central Bank (ECB), "allowed banks to better support the rise in rates and gave them more room for maneuver. wide to adjust their scales", underlined the Banque de France in a press release.

But "this exceptional monthly payment is no longer necessary", while the European Central Bank (ECB) left its rates unchanged in December for the second time in a row, suggesting the end of the cycle of increases rates in Europe.

Usury rates are ceiling rates set by the central bank based on the rates charged by banks over the previous three months. They aim to protect the borrower against over-indebtedness.

This rate caps in particular all the costs of a real estate loan: credit rate practiced by the bank, possible brokers' commission, borrower insurance.

According to the Banque de France press release, the usury rate “now reaches 6,29%” for property loans over 20 years old, after an increase of 2,7 percentage points between January 2023 and January 2024.

Previously calculated every quarter, the usury rates have been updated every month since the start of the year, with banks and brokers judging the previous system too slow to adapt to the rapid tightening of monetary policy.

Scheduled to last until July, this monthly payment was finally extended until the end of the year.

At the end of November, the Banque de France had already opened the door to a return to the quarterly calculation method.

"Now, interest rates are tending towards stabilization: this is true of the ECB rates as well as those of the Livret A, maintained at 3%. It is therefore justified to emerge from exceptional circumstances and return to adjustment quarterly period provided for by law,” the central bank indicated in a statement to AFP.

On Thursday, she judged that the return to the quarterly calculation method “should contribute to the trend towards the stabilization of real estate credit scales, and give better visibility to borrowers”.