Real estate – these loans that cost almost nothing

In the financing of a real estate purchase the main role is played by the bank real estate loan (called “free”), however there are other loans with more advantageous or even zero interest rates. Even if they play secondary roles in financing, it would be a shame to ignore these additional loans. Because ultimately, they help to lower the monthly payment and therefore to reduce the total cost of credit.

The zero-interest loan (PTZ)

It is the best known and most widespread of the subsidized loans due to its main advantage: a zero interest rate. However, the free credit granted by the state does not finance all homes. It is strictly reserved for first buyers, i.e. those who buy their main home for the first time (or those who did not own the two years preceding the loan application).

With variable geometry, the amount of the PTZ is determined on the basis of three criteria: the level of resources, the geographical location of the property to be financed and the composition of the family unit (number of occupants). Sometimes a deferred refund is possible. Depending on the level of income, this deferral can last from 5 to 15 years, from the date of subscription.

The PTZ is combined with other loans and its share of this loan can never exceed 20-40% of the cost of the operation depending on the type of accommodation and its location.

Note that some regional banks sometimes offer a zero-interest “home” loan which can be combined with the “domestic” PTZ.

The PTZ can finance the purchase of new or old homes. In the first case this is only possible in the so-called very tense areas (A and B). In the second case (zones B2 and C) it is necessary to undertake to carry out the works within three years following the granting of the loan which represents at least 25% of the total cost of the operation. There is always an obligation to improve the results of energy consumption.

That is: extended until December 31, 2023, the eco-PTZ is a free credit granted without resource conditions to finance a precise list of energy requalification works of a home with the obligation to improve energy performance. The maximum amount is 30,000 euros but, under certain conditions, it can reach 50,000 euros.

The “Housing Action” loan.

The employee of a private non-agricultural company with at least 10 people can have access to the “Action Logement” loan (eg “1% Housing”). Of a limited amount, this subsidized loan, granted with reserve of funds, has the advantage of offering a rate of 0.5% (insurance excluded), which today is cheaper than conventional bank loans, all above 1%.

The amount also depends on the area in which the property is located and on the composition of the family unit. It should never weigh more than 30% of the total cost of the operation for a new or old property without work.

Its amount varies between € 7,000 and € 25,000. The repayment period cannot exceed 20 years. To find out the conditions of access, which vary greatly depending on the company, it is necessary to inquire directly with your employer (human resources office). Like the PTZ, the Housing Action loan can be combined with other loans.

Local loans from cities and departments

To facilitate home ownership for low-income families, local authorities (city, metropolis, department) sometimes adopt a proactive policy and arrange a specific loan offered at a preferential interest rate, therefore lower than that of a bank loan traditional. This loan is granted after verification of the means. To find out if this type of help exists in your future place of residence and to know the conditions for granting it, you should contact the Departmental Housing Information Agency (ADIL) of your sector.

The city of Paris, for example, lends up to € 24,200 for a single person with no dependents under various conditions, including the test of means (reference tax of € 38,907 for a single person).

Leave a Comment