When considering taking out a loan, whether for a real estate project or another financial need, the usury rate becomes a crucial element to consider. In France, this maximum rate protects borrowers from abusive banking practices. However, its functioning and its impact on your ability to obtain a mortgage deserve particular attention.
What is the usury rate and how is it calculated?
The usury rate represents the maximum legal rate at which a bank can lend. The Banque de France sets it periodically for each type of loan, whether it is a mortgage, consumer credit, etc. This rate is calculated by adding one third to the average overall effective rate practiced by financial institutions during the previous quarter. Thus, the usury rate is regularly reviewed, generally every quarter, to reflect the evolution of market interest rates. It should be taken into account when simulating online as proposed by cribl to get an idea of your borrowing capacity.
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Impact of the usury rate on mortgages
With the rise in interest rates and inflation, the usury rate has also seen an increase, particularly since 2022. In 2025, for example, the rate for a mortgage over 20 years is set at 5.08%. Although this adjustment aims to offer more flexibility to borrowers, it can also lead to loan refusals when financing conditions exceed this legal ceiling.
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Optimize your credit while respecting the usury rate
To maximize your chances of obtaining a loan while respecting the usury rate, several strategies can be considered:
- Negotiate the nominal rate of your mortgage with the bank.
- Look for more competitive borrower insurance. Delegating the insurance can significantly reduce the total cost of your loan.
- Consider subsidized loans or variable-rate loans to decrease your debt ratio.
- Borrow for a shorter duration if possible, as this can reduce the overall effective rate.
- Create a Real Estate Civil Society (SCI) to borrow together and spread the risks.
Consequences of the rise in the usury rate for borrowers
In light of the increase in the usury rate, about 40% of mortgage applications are rejected, often due to this ceiling. This scissor effect, between high interest rates and an unchanged usury rate, limits financing options for many households. Moreover, in February 2023, the Banque de France decided to revise the usury rate monthly to better adapt to economic fluctuations and facilitate access to credit.
Investing in real estate: the alternative of SCPI
For those looking for alternatives to traditional rental investment, Real Estate Investment Companies (SCPI) offer an interesting option. As the usury rate increases, impacting investors, SCPI offers an average return of 4.52% in 2023, while diversifying the risks associated with direct real estate investment.
Tips for managing the rise in the usury rate
To navigate this complex financial context, here are some tips:
- Negotiate fees vigorously with your bank.
- Consider outsourcing your borrower insurance to obtain better rates.
- Increase your personal contribution to reduce the amount borrowed.
- Adapt your real estate project to your current borrowing capacity.
Understanding how the usury rate works and its impact is essential for any borrower seeking financing. With a thoughtful approach and a good strategy, it is possible to circumvent some difficulties related to this rate and successfully carry out your real estate project.