Real estate: “I have five times the amount of my purchase in my accounts and my loan is rejected by my bank”

Anna is disappointed. “I wanted to buy a small house in the countryside for 100,000 euros to live in, explains the 67-year-old retiree, living in Bourges (Cher). Despite a significant personal contribution, I was refused the loan due to this famous usury rate, which the banks told me was too low at the time. However, my income allows me to adequately repay this loan. “


To his surprise, Éric, a 56-year-old commercial from Clermont, was also refused a loan application. “I have five times the amount of my real estate purchase in my accounts, have a more than comfortable salary and have been working for the same company for twenty-one years. I don’t understand. “

45% of applications refused

Anna and Eric are among the many “victims” of the too low level of the usury rate (ed, maximum rate at which a bank can lend, known as the APR, which includes the nominal rate, insurance, mandatory guarantees and any administrative costs, or the cost of credit). According to an Opinion System survey conducted among brokers, who ask to demonstrate on September 20 in front of the Banque de France, 45% of mortgage loan applications would be rejected for this reason. While all interest rates are rising as part of monetary policy to fight inflation, the usury rate, set every three months by the Banque de France, appears, according to real estate professionals, to be disconnected from the rest of the market.

Reform the usury rate

“The first excluded were the young people with the lowest contribution; then we had the elderly, because of the insurance, explains Maël Bernier, spokesperson for the broker Meilleurtaux. Now I have blocked the files of people aged 45 with a contribution of 300,000 euros and who earn 12,000 euros a month. They cannot borrow because with a rate of 1.85%, you add the insurance plus the guarantee that goes into the APR and you overcome the usury. According to Maël Bernier, there is an urgent need to reform the usury rate. “The last time we had rates at 2%, we had a usury rate at 4.20%.”

Revision on 1 October

Meanwhile, Anna resigned herself to «having to rent, which in the end will cost me more and is completely lost. “Another solution ?? Wait for the usury rate to be revised. Fixed at 2.57% from July 1 for fixed rate loans from 20 years, the usury rate will be updated on October 1. Bercy promised, Thursday, a “fairly marked” upward revision.

Credit professionals fear a frozen real estate market

Nicolas Faucón

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