Financing your first home

In the draft Budget Law 2016, the government has provided for the relaxation of the zero-interest loan and the loan for social housing, so that more first-time buyers can benefit from it.

Financing your first home

Financing your first home

Housing Minister Colonel confirmed at the Fnan Congress on December 15: “There are tangible signs of market recovery in transactions and construction. But it became clear to us that accession was lagging behind in tense areas and for young households. Our choice (for 2016) is to consolidate existing processes. “

Special credits exist to facilitate the first purchase of the principal residence, but they do not always meet their public. The government has therefore provided in the 2016 finance bill, relaxation of the zero-rate loan and social loan accession, so that more first-time buyers benefit.

A soft zero rate loan

A soft zero rate loan

The state-funded free-of-charge (PTZ) loan complements conventional financing and reduces the cost of your first principal residence. The PTZ is granted under means condition, it allows to finance an acquisition in the new or in the old with works.

Take the example of a couple with two children who wants to buy his first apartment in La Rochelle for 200,000 euros. He will be able to benefit from a “free” loan of 52,000 euros. The government decided, last November, to give an additional boost to first-time buyers. In 2016, it could represent 40% of the cost of the operation against 18 to 26% today.

“The goal is to distribute an additional 55,000 PTZs next year, and to go from 65,000 to 120,000, including more than 10,000 additional ones in the old one,” Colonel said at the Fnan Congress. The modifications made to the existing formula will be voted within a few days in the next budget law.

Main improvement of the system: the increase of the income ceilings which will allow a greater number of borrowers to be entitled, the extension of the deferred payment of the credit which would go from five to fifteen years, against zero to fourteen years today, for a maximum loan term that remains twenty-five years.

There is no more geographical restriction for the purchase in the old with works. The list of cities in which one could benefit from the PTZ to complete the financing of an old property has disappeared. With this expansion, the public authorities want to encourage future owners to reinvest abandoned centers in small towns and to participate in their renovation. However, by setting a minimum of 25% of the work in the total cost of the operation, the government could miss its target.

The “social accession loan” aligned with the PTZ in 2016

The "social accession loan" aligned with the PTZ in 2016

First-time buyers can also benefit from a so-called “PAS” social housing loan, granted on a means-tested basis. In 2016, these will be aligned with those of the zero interest loan to open this financing of the principal residence to a greater number of first-time buyers.

SSP is not a discounted or free credit, it is a conventional loan granted by a bank or financial institution that has signed an agreement with the State. “The PAS is an option of a conventional loan, it must be asked to his bank, explains Speaker, communication manager of the broker Good Lender. This allows subscribers to receive or continue receiving housing benefits (APL) and thus reduce repayment payments. “

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