Wear rates in effect from October 1, 2024

The new usury rates have just been communicated by the Banque de France for the fourth quarter of 2024. It seems that loans with a duration ranging from 10 to 20 years and that loans over 20 years and more are modeled on the health of real estate, certain sectors of which are doing better and better:

• Decline in interest rates which become more attractive again.
• Cut in key rates from the European Central Bank (ECB).
• Stabilization of real estate transactions, an encouraging sign after the period of decline.
• Implementation of government measures, such as changes around MaPrimeRenov’, to encourage the real estate market.
• …

Discover the new usury rates which will come into force from 1^is October 2024:

• Fixed rate property loans with a term of less than 10 years: 4.63%.
• Fixed-rate real estate loans with a duration of between 10 and 20 years: 6.03%.
• Fixed rate real estate loans with a term of 20 years or more: 5.85%. This new decline in this category, the most requested by borrowers, is once again encouraging for future buyers and real estate professionals.
• Variable rate home loans: 5.99%.
• Bridge loans: 6.68%.

Let us remember that the usury rates were, in 2023, communicated every month because of the crisis, which hit real estate and which spared none of the players, whether they are brokers, real estate agents, notaries, promoters, etc.

Usury rates put in place to protect borrowers

Usury rates, which correspond to the Annual Effective Annual Rate, known by the acronym APR, are legal rates beyond which banks or financing companies are not authorized to lend. They actually play an important role in protecting borrowers. They avoid any abusive drift revolving around interest rates in the context of loans.

Wear rates applicable according to several criteria

Also called usury thresholds, they apply to all loans intended for individuals. An individual, who wants to take out a real estate loan from his bank, must keep in mind that the usury rates will differ depending on several criteria:

• The type of loan taken out: fixed or variable rate loans, consumer loans, account overdrafts, etc.
• The amount borrowed.
• The duration of the loan.

What are the different loans affected by usury rates? ?

• Cash credit depending on the amount of the loan.
• Fixed rate real estate loan depending on the duration.
• Variable rate real estate loan.
• Bridging loan, a solution if the second buyer wants to become the owner of a property again before having sold the old one.

A look back at the evolution of wear rates during the first two quarters of 2024: