Home Loan: Amortization rate will be updated every month


After months of waiting, the Banque de France and the Ministry of Economy have decided to change their minds. The update of the wear rate, which sets the maximum rate at which banks are authorized to lend, will be done every month and not every quarter. This monthly rate review was decided on Wednesday at a meeting between the Bank of France and representatives of banks and brokers.

To enter into force, this decision still needs to be approved by Bercy. A procedure, because alongside Bruno Le Maire, we make sure with him JDDthat the measure will be “with the support of the minister, in order to allow the rate of attrition to adapt more quickly and fluidly to changes in market rates.”

Here’s the main reason for this change: mortgage rates have risen rapidly over the past six months due to inflation and are easily over 2% at many banks. Faced with this rapid rise in rates, the quarterly calculation of the attrition rate – which is based on the types of loans signed in the last three months – did not allow following the realities of the market. As a result, several files were found to be locked due to an attrition rate deemed too low. The latter rose on January 1 to 3.57% for a mortgage of more than twenty years.

Monthly payment from February 1 or March 1

Since September, many brokers have been unsuccessfully asking for a monthly payment for the wear and tear calculation, with the Banque de France and Bercy considering the quarterly method to protect the consumer from excessively high fees. But on the side of the Minister of Economy, he now assures it “This monthly payment will make it possible to maintain the objective of protecting borrowers and avoid a situation in which the attrition rate would become a factor in the rationing of the credit offer”.

To avoid any drift, the monthly payment can only be temporary: the change cannot apply beyond eight quarters. In addition, it is not a change in the calculation method but only computer modifications to allow a quick measurement of the rate every 1 month. “The technical work to operate the monthly payment system will continue next week with the Bank of France, the Treasury and the banks. says Bercy. Depending on the results of the technical work, the monthly payment could start on February 1 or March 1. »

Source : Le JDD

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