If the wear rate has risen to 3.05% for loans with a term of 20 years and more, brokers and banks are continuing discussions with the Banque de France to change its calculation to allow more leeway.

The wear rate isn’t done talking about him. Maximum allowed interest rate beyond which banks cannot lend money, the usurious interest rate is a total interest rate that includes the nominal interest rate, the borrower’s insurance and the various administrative fees.

Since 1 October 2022, it has been set at 3.05% for loans with a term of 20 years and over, and 3.03% for shorter terms. A breath of fresh air for some borrowers who could not borrow, while the old usurious rate for loans of 20 years and above was set at 2.57% until now.

However, the recovery is likely to be short-lived. Because this increase in usurious rates was accompanied by an increase in credit rates from the banks. Therefore, many bankers and brokers find this new attrition rate still too low. The attrition rate is currently around 3%, 1.10% is missing for us to work, a banker admits to thing. It would be necessary to reach above 4%. At the current pace, we will get there by July 2023.

Be based more on the offers than on the signed credits

But always according to thing, things could change faster than expected. While since September there have been discussions between the Banque de France and the banking institutions, the latter would like to be taken into account when calculating the attrition rate offers to households by banks and no longer the average of loan offers signed over the past three months.

For months, some market observers have explained that the wear rate suffers from a double delayed effect: not only is the attrition rate for the quarter calculated on the basis of the credit rates from the previous quarter, but the latter also only takes into account the rates of the validated files, thus leaving aside for the calculation all the files that already exceed the attrition rate. Relying on offers and no longer on releases would therefore increase the attrition rate faster. According to thingthis idea is gaining ground.

But for its part, the Banque de France is sticking to its position by claiming that the decision from the end of September has shown that the rule and the current calculation mode worked well. Borrowers in difficulty therefore still have to wait before clearing.

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