the maximum rate for a 20-year loan will exceed 5% on July 1

A record since 2014. The ceiling rate for new mortgages will exceed 5% on July 1 for fixed-rate loans with a duration of 20 years and more, according to a notice published Thursday, June 29 in the Official Journal. This usury rate is set by the Banque de France on the basis of the rates charged by the banks, and is intended to protect the borrower against over-indebtedness. This is the maximum rate at which banks can lend to finance the purchase of real estate.

This rate includes all the costs of a home loan, including the credit rate, borrower insurance and any broker commissions. Currently 4.68% for mortgages over 20 years old, this rate will drop to 5.09% on July 1. 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% for the moment, and that for a loan between 10 and 20 years to 4, 84%, against 4.45%.

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.