Photo: Pexels- Q2 2026 French usury rates applicable from April 1 to June 30, 2026
- 5.19 percent for fixed-rate mortgages of 20 years and more
- 4.48 percent for loans of 10 to less than 20 years
- 4 percent for loans of less than 10 years
- Slight increase on long durations, decrease on short ones
Published in the French Official Journal on March 27, 2026, the usury rates for the second quarter came into force on April 1, 2026. They condition access to mortgages for all French borrowers. Here are the caps to comply with and their concrete impact.
New applicable usury rates
From April 1, 2026 to June 30, 2026, the usury rates for fixed-rate mortgages are:
| Loan term | Q2 2026 usury rate | Change vs Q1 |
|---|---|---|
| Less than 10 years | 4 percent | -0.12 point |
| 10 to less than 20 years | 4.48 percent | -0.11 point |
| 20 years and more | 5.19 percent | +0.06 point |
Why this evolution?
The Banque de France calculates the usury rates each quarter based on the average effective rates practised by credit institutions in the previous quarter, increased by one third. This mechanism follows the market without allowing abusive rates.
In Q2 2026:
- Rates on short and medium durations ease, reflecting a slight decrease in credit conditions
- Rates on long durations rise, linked to European monetary policy and bond market volatility
- The legal APR cap for 20 years and more reaches 5.19 percent, bringing back a scissor effect for some profiles
How the usury rate impacts your loan
Three direct consequences for the borrower:
- Potential file blockage: if the APR proposed by the bank exceeds the cap, the offer cannot be issued
- Pressure on borrower insurance: expensive insurance can push a file above the usury rate
- Scissor effect: borrowers with less solid profiles are the first to be refused loans
Simulation: APR calculation for a 200,000 euros loan over 20 years
A concrete case: a borrower wants a 200,000 euros loan over 20 years at a nominal rate of 4 percent.
- Nominal rate: 4 percent
- Group borrower insurance: 0.35 percent
- Application fees: 1,000 euros (0.05 percent annualised)
- Guarantee: 2,000 euros (0.1 percent annualised)
- Total APR: around 4.5 percent
In this case, the APR is well below the 5.19 percent usury rate, the loan goes through. But with group insurance at 0.6 percent (less favourable profile), the APR would rise to 4.75 percent, still below the cap but with reduced margin.
Strategies to lower the APR
Several levers help stay below the usury rate:
- Borrower insurance delegation: 30 to 50 percent savings on insurance cost, so lower APR. See our guide on borrower insurance delegation
- Increase the down payment: reduces the borrowed amount and indirectly the APR
- Negotiate application fees: often reducible by 50 percent
- Lengthen or shorten the term: each term has its own cap, changing the term can help
- Adjust guarantees: mutual surety vs mortgage, compare costs
What to do if your file exceeds the usury rate?
Impact on renegotiation and refinancing
Borrowers whose existing loan is at a high rate can take advantage of the easing of the usury rate on short durations to consider refinancing. See our detailed analysis: credit refinancing: when is it profitable?
Fixed vs variable rates
The Q2 2026 usury rates concern fixed-rate loans. Variable-rate loans have their own cap, also updated quarterly. They remain very minority in France (less than 5 percent of mortgages).
Schedule: next update
Q3 2026 usury rates will be published around June 26, 2026, for application on July 1, 2026. Monitoring these publications helps anticipate the right time to submit a file.
Useful links
Mortgage rates 2026, Credit refinancing, Borrower insurance delegation, Jeanbrun scheme, Glossary.