WEAR RATE. From February 1, 2023, the wear rate will be revised every month, and no longer every quarter. A new calculation formula that should make it easier to access the mortgage.
[Mis à jour le 24 janvier 2023 à 09h27] Starting the February 1, 2023the wear rateallowing you to define the maximum legal rate at which credit institutions are authorized to charge when they grant you a home loan will change formula! Indeed, it will now be updated every month by the Banque de France and not at the end of each quarter as was the case until then. Good news for borrowers, this new measure should allow banks toto agree more credits. In summary, the banks will be able to adjust their trade policy and release funds that are currently blocked. But the flip side of the coin lies elsewhere. If it will be easier to borrow, the cost of credit will be higher. Today, the wear rate of fixed-rate mortgages less than 20 years old is set at 3.57%.
Above all, the usury rate makes it possible to protect a borrower against excessive rates that could be offered to him by various credit institutions. In other words, it makes it possible to avoid situations of over-indebtedness serious for an individual, and on a larger scale, the destabilization of the global economy. It therefore plays a regulatory role. It applies to home loans as well as consumer loans, account overdrafts, or revolving loans.
| Type of loans | Average rate in the 4th quarter of 2022 charged by credit institutions | Attrition rate as of January 1, 2023 |
| Fixed rate loan < 10 years | 2.56% | 3.41% |
| 10 to 20 year fixed rate loan | 2.65% | 3.53% |
| Fixed rate loan > 20 years | 2.68% | 3.57% |
It is the Banque de France which sets the rate of wear. It is based on the average effective rates charged by credit institutions increased by a third. The thresholds vary according to the amount borrowed, the duration of the loan and the category of loan chosen (Consumer credit or revolving credit for example).
In 2022, the evolution of the real estate market is more than doubtful and uncertain. Since the beginning of 2022, interest rates have been rising faster than this famous rate of wear. De facto, many pretenders to the real estate loan are denied their loan application. A study ofOpinion Systemcommissioned by the French Association of Bancassurance Intermediaries (AFIB) even affirms that since January 2022, this increase in the wear rate is responsible for the refusal of 45% home loan applications from the banks. This is why some professionals in the sector are asking for a change in the method of calculating the wear rate by increasing by two thirdsinstead of a third.