Newly published Usury Rates (Taux d’Usure in French) are not good news for borrowers.
Set up to protect borrowers from possible abuse by banks, the usury rates are published quarterly by the Banque De France and set the maximum authorized rates for loans on the basis of the average annual percentage rate applied by the various banks during the previous quarter increased by one third.
This method is contested by many professionals because of the three months gap between the publication of the usury rates and the terms offered by the banks. It excludes many individuals, yet solvent, from mortgage loans. The most penalized are older borrowers exceeding the threshold of usury because of the important weight of mortgage life insurance in the average annual percentage rate.
With a starting economic recovery and mortgage rates on the rise, there is a risk that many borrowers will be excluded from successfully obtaining a credit this fall.
Current mortgage rates for September 2020
|Fixed rate(1)||Term||Monthly repayment
for 10 000€ borrowed
|0.75%||10 years / 120 months||86.52€|
|1.00%||15 years / 180 months||59.85€|
|1.25%||20 years / 240 months||47.11€|
|2.15%||25 years / 300 months||43.12€|
(1) The indicated rates are given for information purposes and are based on the latest bank rates of one or more of our partners. The rates in the table above do not include the ancillary cost as notary fees, guarantees, insurance and intermediation.
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