The taux d'usure is the legal maximum for the all-in cost of a French loan, its TAEG, which includes interest, borrower insurance, the guarantee and fees. From 1 October to 31 December 2026 it is 4.09% for fixed-rate loans under 10 years, 4.68% from 10 to under 20 years and 5.40% for 20 years and over. The Banque de France resets it every quarter from the average rates lenders charged in the previous quarter, plus one third. A non-resident file with expensive insurance can be refused because the all-in rate breaks the cap, even when the interest rate itself is fine.
What the taux d'usure is
The taux d'usure (usury rate) is the highest rate a French lender may charge on a loan. It is not tested against the interest rate in your offer but against the TAEG, the all-in annual rate that adds the borrower insurance the bank requires, the guarantee, the arrangement fee and any broker fee to the interest.
A loan whose TAEG is above the cap in force when it is granted is usurious. Usury is a criminal offence in France, punishable by up to two years in prison and a €300,000 fine, so banks do not lend above it. If your file does not fit, the bank changes the terms or declines.
The caps from October to December 2026
| Property loans | Cap from 1 October 2026 |
|---|---|
| Fixed rate, under 10 years | 4.09% |
| Fixed rate, 10 to under 20 years | 4.68% |
| Fixed rate, 20 years and over | 5.40% |
| Variable rate | 5.52% |
| Bridging loans | 6.49% |
The fixed-rate bands depend on the length of the loan, so a 19-year loan is tested against 4.68% and a 20-year loan against 5.40%. Shorter loans have lower caps, which catches older borrowers who are offered shorter terms. Standard files sit well below these levels: loans granted in September 2026 averaged 3.40% before insurance, and this month's figures are on the rates page.
How the Banque de France sets it each quarter
At the end of each quarter, the Banque de France takes the average effective rate lenders charged on each category of loan during that quarter and adds one third. The result is the cap for the next quarter, published in the Journal officiel (the official gazette). The current thresholds were published on 26 September 2026.
For loans of 20 years and over, the average effective rate in the third quarter of 2026 was 4.05%. One third of 4.05% is 1.35%, so the cap is 4.05% + 1.35% = 5.40%. The same arithmetic gives 4.68% for 10 to under 20 years, from an average of 3.51%, and 4.09% under 10 years, from 3.07%.
Because the cap follows the market with a delay, it lags when rates rise quickly. Brokers report that some files are being refused because the all-in rate exceeds the threshold, mostly for older borrowers and for small loans where fixed fees weigh heavily.
Worked example: when insurance breaks the cap
Assumptions: a €300,000 loan over 20 years at a fixed 3.75%, a €1,000 arrangement fee and a guarantee costing €3,500. Insurance is charged on the amount borrowed. The repayment before insurance is €1,778.66 a month, and the cap for this term is 5.40%.
- Borrower aged 40, insurance at 0.30% a year (€75 a month): TAEG about 4.49%, well under the cap.
- Borrower aged 58 with a health history, bank policy at 0.90% a year (€225 a month): TAEG about 5.46%. Above the cap, so the bank cannot lend on these terms.
- Same borrower, external policy at 0.60% a year (€150 a month): TAEG about 4.98%, back under the cap.
The interest rate is identical in all three cases. Only the insurance changes, and it decides whether the loan can be made. Test your own figures in the calculator, which estimates the TAEG.
Why non-resident files come close to the cap
- Age. Second-home buyers are often in their fifties or sixties. Borrower insurance costs more with age, and health questions apply once the insured amount is above €200,000 per person or the loan ends after your 60th birthday.
- Pricing. Non-resident files usually price above the averages French residents obtain, so the starting point is higher.
- Shorter terms. A bank that wants the loan repaid by a set age may offer 15 years, which moves you into the 4.68% band.
- Small loans. A €1,000 fee and a guarantee weigh far more on €120,000 than on €400,000.
What to do if your file is close to the cap
Ask the broker to calculate the TAEG before you sign the compromis, not after the bank's credit committee. If it is close to the cap, the usual levers are an external insurance policy with equivalent cover, a lower arrangement fee, or a term of 20 years or more if your age and income allow it. The cap changes every quarter, so a file that fails in one quarter may pass in the next, although the loan condition in your compromis rarely leaves time to wait.
Start with the eligibility check, and we will introduce you to one broker who can price your file, insurance included, against this quarter's caps.
Questions
What is the taux d'usure in France in 2026?
From 1 October to 31 December 2026, the cap for fixed-rate property loans is 4.09% under 10 years, 4.68% from 10 to under 20 years and 5.40% for 20 years and over.
Does the taux d'usure include borrower insurance?
Yes. The cap is tested against the TAEG, which includes interest, the insurance the bank requires, the guarantee and fees.
How often does the taux d'usure change?
Every quarter. The Banque de France takes the average rate lenders charged in the previous quarter for each category of loan and adds one third.
Can a French bank lend above the taux d'usure?
No. A loan whose all-in rate exceeds the cap is usurious, which is a criminal offence. The bank has to change the terms or decline the loan.