OUR ADVICE – It is possible to circumvent the difficulties related to the rate of wear by several effective means.
Supposed to protect borrowers, the usury rate – decorrelated from market rates since the sharp rise in the latter – serves them. Especially since it is the APR (annual effective annual rate), which includes the nominal rate of the loan but also the costs of administration, insurance and compulsory guarantees, which is compared to the rate of wear. Nearly 50% of mortgage loan files were refused this summer for failing to respect this ceiling. Fortunately, solutions exist to overcome the wear rate…
1. Should I borrow at a variable rate?
Ignored since the drastic drop in fixed rates in recent years, variable rate loans – also called revisable – are now back on the front of the stage. They depend not on the ten-year OAT, like the fixed rates, but on the three-month Euribor. Adjustable rates are, on average, 0.30 to 0.60 points lower than fixed rates. Caution, however, because the Euribor is also beginning to rise which will be passed on to…
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