The usury rate caps the maximum cost of a mortgage. Since 1 October 2026, new ceilings apply to loans for private individuals. Owners selling to buy again, buyers: this scale directly influences your borrowing capacity and the total amount you will repay. Here are the thresholds in force and what they mean in practice for a €600,000 loan.
What the usury rate changes on 1 October 2026
The usury rate is the maximum authorised annual percentage rate of charge (APRC) for a loan. It includes the nominal rate, arrangement fees, brokerage commissions, borrower's insurance and compulsory guarantees. A bank cannot grant a loan whose APRC exceeds this ceiling.
According to Service-Public, the notice of 25 September 2026 sets the thresholds applicable from 1 October 2026:
- 4.09% for fixed-rate loans with a term of less than 10 years;
- 4.68% for fixed-rate loans of 10 to less than 20 years;
- 5.40% for fixed-rate loans of 20 years and more;
- 5.52% for variable-rate loans;
- 6.49% for bridging loans.
These rates are revised each quarter by the Banque de France. They vary according to the term, the type of loan and the category of borrower. For a private individual buying a main or second home, it is the APRC that must remain below the ceiling.
Example: a couple borrows €600,000 over 20 years
Let us imagine a couple buying a house in Annecy or in the French Genevois. They borrow €600,000 over 20 years at a fixed rate. The applicable usury rate is 5.40% (loans of 20 years and more). Their APRC therefore cannot exceed 5.40%.
If the final APRC is 4.50% (nominal rate of 4.00% + insurance and fees), the total cost of the loan is well below the ceiling. If the APRC reached 5.40%, the project would still be possible, but the total cost would be higher. Beyond that, the bank is in breach.
As an indication, for €600,000 over 20 years:
- At an APRC of 4.50%, the monthly payment excluding insurance is around €3,800 and the total cost of interest exceeds €300,000.
- At an APRC of 5.40%, the monthly payment approaches €4,100 and the interest exceeds €380,000.
This example is provided for educational purposes. The exact calculation depends on the insurance, the arrangement fees and the guarantees. It does not replace a personalised bank simulation.
Why this ceiling matters for your property project
The usury rate protects borrowers against abusive conditions. But it can also exclude certain profiles from credit when banks consider the risk too high. The October 2026 thresholds are higher than those of the previous quarter, which widens access to financing for households.
For a seller, knowing these ceilings helps to understand buyers' purchasing power. For a buyer, it is a benchmark for negotiating the rate of their loan offer with their bank or a broker.
The rates advertised by banks often remain below the ceiling. But the ancillary costs (insurance, guarantee, brokerage) can push the APRC up. It is therefore essential to compare offers on the basis of the APRC and not the nominal rate alone.
What you need to remember before committing
- Since 1 October 2026, the APRC ceiling is 5.40% for a fixed-rate loan of 20 years and more.
- The usury rate includes all compulsory costs, not only the interest rate.
- A €600,000 loan over 20 years can be accepted if its APRC does not exceed the ceiling, but the rate conditions depend on your profile.
- The ceilings are revised each quarter, so a simulation made today may change.
If you have a project to sell or buy in Annecy or in the French Genevois, plan your financing in advance. Our team can point you towards the right contacts and help you estimate the value of your current property, a key step before approaching a bank.
You can consult our page property sales, use ouronline valuation tool in Annecy or that of the French Genevois, or contact us for personalised support.