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The Zero Rate Loan: More Flexibility

The Zero Rate Loan is granted, subject to means test, to households wishing to acquire their first main residence in new or old. As of January 1, 2016, the Zero Rate Loan (PTZ) is more accessible, in new as in old. This loan can thus finance up to 40% of real estate, all geographic areas combined. In addition, the income limits are increased, allowing a greater number of borrowers to benefit from the PTZ.

The reference tax income (RFR) of the persons intended to occupy the financed housing must not exceed, according to the geographical areas, an amount varying between 24,000 USD to 37,000 USD for a share of family quotient. The reference year to be taken into account is the penultimate year preceding the offer (year n-2). For example, for the PTZ offer in 2016, the income taken into account will be that of 2014 indicated on your 2015 tax notice.

The PTZ is granted without administrative fees and without interest, these being borne by the State: this loan allows you to repay only 20,000 dollars if you borrowed 20,000 dollars. However, you will have to pay the borrower insurance premiums.

 

The zero rate loan does not allow you to finance your entire purchase

The zero rate loan does not allow you to finance your entire purchase

It always comes in addition to other loans, which can also be combined: bank real estate loan, approved loan, social accession loan, home savings loan … Finally, last condition to benefit from it, you must not have been the owner of a main residence in the last two years, with certain exceptions (holder of a disability card, beneficiary of the disabled adult allowance AAH or AES, victim of a disaster making your old accommodation uninhabitable).

 

Variable loan amount

Variable loan amount

The amount of the PTZ will depend on both the location of the accommodation and the number of people in the household. It is therefore necessary, before launching, to carry out some simulations. You can find out more on the website www.service-public.fr, as well as on the website of the National Agency for Information on Housing.

 

The term of the loan

The term of the loan

Once the loan is acquired, you will repay it by constant monthly payments, depending on your income, the location of the accommodation, over a period of 20 to 25 years.

The repayment term of the PTZ depends on your income, the composition of the household and the geographic area in which you buy your future home. As a general rule, the repayment period will be shorter the higher your income. It extends from 20 to 25 years depending on the case, and includes two periods:

  • the deferred period, during which you do not reimburse the PTZ (this period is, depending on your income, 5, 10 or 15 years)
  • the loan repayment period, which follows the deferral, varies between 10 and 15 years.

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