Since January 1, nearly one in two requests for home loans, or 45%, have been refused in France because of the usury rate, that is to say the maximum rate at which a bank can lend, according to a Opinion System poll commissioned in particular by Afib (French association of intermediaries in bancassurance) and consulted on Tuesday August 16 by franceinfo. “It is an alarming proportion”, worries about franceinfo its president Jérôme Cusanno.
>> REPORT. Real estate: with credit rates that exceed the rate of wear, more and more borrowers have to give up their project
This percentage is explained by a “insufficient increase” wear rate, “set on July 1 at 2.57% for loans of 20 years or more”says Afib in a press release. “This is the rate given by the Banque de France each quarter beyond which a bank is prohibited from lending. It protects the consumer against banks that might try to finance the consumer on rates that are too high compared to the market average, which is very good, but the problem is that this rate does not rise fast enough. in relation to the rise in interest rates”explains Jérome Cusanno.
“The matter is rather seriouscontinues the president of Afib. Our fear is that the entire real estate ecosystem, all professions and employees, will be impacted by this problem of the rate of wear and tear if we do not remedy it quickly”. Especially since thehalf of these refusals of mortgages linked to the wear rate concern the 30-55 age group (51%), i.e. “the wealthiest asset class”he observes. Principal residence purchase projects are the most concerned (71%), according to the Opinion System survey. “Sales in old and new real estate are already affectedwarns Jérôme Cusanno. Constructions too, which risks also impacting the construction industry, France’s largest employer, but also notaries and transfer taxes which fall into the state coffers”.
According to Afib, “there are several levers to move in order to be able to ‘declerose’ the system. We first propose to carry out an overhaul of the mode of calculation of the rate of wear, because this mode of calculation is an average of the last three months, of the previous quarter, increased by one third, explains Jérôme Cusanno. We are proposing to increase it by two thirds. It would give us a bubble of oxygen.
“There is another possible lever: definitively put borrower insurance out of the calculation of the APR [taux effectif annuel global].”Jérôme Cusanno, President of Afib
“And then, the Governor of the Banque de France can decide on an exceptional measure in an exceptional situation, to increase the rate of wear and tear for one month”, he continues.
But “for those who have a purchase project, the best thing is to wait”, advises Jérôme Cusanno. We borrow around 2% today. It has increased a lot. We have had a prosperous period over the last 5 years. The European Central Bank’s key rates have continued to come down to support the economy. But the economy responds to a cycle and today, we are rather on an upward phase. Rates are going up and rates are going up too fast.
“We don’t have a crystal ball but I think it will continue to increase.”Jerome Cusanno
“Especially since it is a tool of the European Central Bank to fight against inflation and the economic crisis in which we currently find ourselves”, supports Jérôme Cusanno.