The temporary adjustment will allow this rate to be reassessed every month, whereas until now it was only done every quarter.
It’s a source of constant concern for the real estate sector. The wear rate, which represents the ceiling above which a bank can no longer lend money to its customers, will experience an adjustment. With real estate interest rates rising, the latter often prevents the French from becoming homeowners. If the wear rate had been raised in January to 3.57% for credits over 20 years old, its pace was considered too slow for brokers, who warned of the lag with the sharp rise in interest rates. For several months, credit professionals have been fighting to make the system more flexible. And allow the reassessment of the wear rate every month when it was only done quarterly. It is now done.
After a meeting on Wednesday between the services of Bercy, the Banque de France and the brokers, the Ministry of the Economy therefore accepted the “proposal for temporary monthly payment of the revision of the rate of wear (…). in order to allow, in this period of rapid rise in rates, the usury rate to adapt more quickly and more fluidly to the evolution of market rates. And he adds: “This monthly payment will make it possible to maintain the objective of protecting borrowers that the rate of wear and tear has, while avoiding a situation where the rate of wear would become a factor of rationing of the supply of credit.”
The Governor of the Banque de France had already shown his support for this new system on Wednesday morning during a hearing in the Senate. “There has been pressure from various lender representatives to bring the attrition rate up significantly faster. I don’t think that’s desirable. (…). A gradual and orderly recovery is needed to protect borrowers“, underlined François Villeroy de Galhau. The monthly payment, reduced to one “technical adjustment“, can then be “justified if desired by the credit professionals we will consult in this regard.” Thanks to the technical work, which will be undertaken for reasons of IT adaptations, this modification could come into force, according to Bercy, on 1er February or 1er March.