As of April 1, 2025, the Banque de France has announced new usury thresholds that will significantly impact both real estate and consumer loans in France. These changes, effective for the next three months, reflect a notable shift in the lending landscape, particularly for those seeking mortgages and personal loans.
The usury rate, which is the maximum allowable interest rate that lenders can charge, has decreased for real estate loans. For fixed-rate loans with a duration of less than 10 years, the new usury rate is set at 4.51%, a decrease of 0.1 points from the previous threshold. Loans with a duration between 10 and 20 years will see a usury rate of 5.45%, down by 0.35 points. For loans lasting 20 years or more, the rate is now 5.31%, a reduction of 0.36 points. Additionally, variable-rate loans will have a usury rate of 5.64%, down 0.23 points, while bridging loans are set at 6.39%, decreasing by 0.25 points. This means that if you apply for a fixed-rate loan for more than 20 years, lenders cannot offer a TAEG higher than 5.31% until July 2025.
These reductions are seen as a response to the gradual improvement in lending offers observed over the past few months. The Banque de France calculates the usury rate based on a weighted average of the TAEG (annual percentage rate of charge) from the previous quarter, which helps ensure that rates reflect current market conditions.
In contrast, the usury rates for consumer loans have slightly increased for the second quarter of 2025. Loans amounting to €3,000 or less will have a usury rate of 23.24%, an increase of 0.3 points. For loans between €3,000 and €6,000, the rate is now 15.67%, up by 0.5 points. Loans exceeding €6,000 will see a usury rate of 8.63%, which is an increase of 0.12 points. This shift indicates that while borrowing for real estate may become more accessible, consumer loans could become more expensive.
April also brings other changes that could impact potential homebuyers. Notably, four new measures have come into effect that may facilitate real estate purchases throughout France. One significant change is the expansion of the PTZ (zero-interest loan) program, which is now available across the entire country, rather than being limited to specific zones. This opens up opportunities for those looking to buy homes in both urban and rural areas.
Moreover, the PTZ can now finance the purchase of new individual houses, as long as the construction was completed within the last five years. However, the rules for purchasing older properties remain unchanged, allowing for PTZ eligibility for homes needing renovations or for social housing occupied by the buyer.
Another important change is the increase in notary fees. For example, if a buyer purchases an apartment for €200,000, the notary fees would have been approximately €14,000 before April 1, but now they will rise by €1,000 to a total of €15,000. However, it's worth noting that this fee increase is optional for each department, meaning some regions may choose not to raise these fees. Additionally, first-time buyers can breathe a sigh of relief, as they are exempt from this increase if they purchase a property for less than €250,000.
Furthermore, the government has made it easier for families to make donations toward the purchase of a main residence, the construction of a house, or energy renovation projects. To qualify for this facilitation, the property must be retained for at least five years, and the donor must be a parent or grandparent capable of making the gift.
Lastly, the popular Loc'Avantages scheme, which provides tax reductions to landlords renting to modest tenants, has been extended for an additional two years, now lasting until 2027. This initiative aims to encourage affordable housing options and support both landlords and tenants.
As these changes take effect, potential buyers are encouraged to consider how they might influence their purchasing decisions. While the reduction in real estate usury rates should make mortgages more accessible, the increase in consumer loan rates may prompt buyers to weigh their financing options carefully. The overall trend in housing prices appears to be stabilizing across many regions in France, which could further support a favorable environment for buyers.
For those contemplating a real estate purchase, now might be an opportune time to explore these new regulations and how they can assist in securing financing. Consulting with a financial professional, such as a bank advisor or mortgage broker, can provide valuable insights into navigating these changes effectively.
