The zero-interest loan, a real bargain
The zero-rate loan, or PTZ, is a loan aided by the State which, under certain granting conditions, can be granted by banks to first-time buyers to complement a traditional real estate loan.
Because it is zero-interest, you don’t need to be an accountant to understand that it allows you to make substantial savings at a time when the average loan rate is flirting with 4%.
It thus provides a real helping hand when you wish to become the owner of your Principal residence, especially since it is also exempt from administrative fees and can benefit from a deferred depreciation. Thus, depending on the borrower’s situation and their needs, the start of repayment may take place later.
The decline in the number of loans granted
The Company for the Management of Financing and the Guarantee of Social Accession to Property (SGFGAS) draws up an annual report on the number of zero-interest loans that have been granted. In this report, the figures are presented quarter by quarter to better see the evolution.
If we look at this assessment, we can see a dizzying fall of the number of zero-rate loans granted in 2022 compared to 2021: the number increased from just over 74,000 ready for a little more 63,000be one drop of 17%.
It was in particular during the last quarter of 2022 that the figures deteriorated with a 31.9% drop in PTZ distributed. The first quarter of 2023 is hardly more encouraging since only 8,735 PTZs were granted compared to 11,915 in 2022.
The reasons for this decline
Current economic conditions
Obtaining a loan with a rate of 0% when the rates are at 4% is a good thing, but we must not forget that this loan is essentially intended for first-time buyers and that it comes in addition to a traditional loan.
However, faced with the difficulties of obtaining a traditional loan, inflation and the rise in interest rates on real estate loans, more and more people are turning away from purchasing real estate either because They wait for better days, either because it is financially impossible for them to do so at the moment.
Moreover, alongside the drop in the number of PTZs granted, we can see a real estate market also at half mast and a recovery is not yet imminent. The PTZ loan being less and less requested, it will gradually die out or undergo transformationsespecially since the State believes that it is not up to it to subsidize the private real estate market.
The conditions for granting the zero-interest loan
The problem with the PTZ is that it is mainly granted to first-time buyers with modest incomes for the purchase of a main residence. It is obvious that at present, people with modest incomes are finding it more and more difficult to obtain traditional credit, since the debt rate is set at 35% and that the banks are increasingly cautious.
But without a traditional loan, no PTZ! And this is unlikely to improve in 2024 as the Government plans to tighten the conditions for granting the PTZ.
The extension of the zero-rate loan
The disappearance of the zero-rate loan was scheduled for the end of 2023, but it was ultimately postponed until 2027. If this is good news, the conditions of granting will change to the detriment of first-time buyers, which means that if you are in this situation and you want and can benefit from it, Do not waste time. Here’s what should change:
- The PTZ will be refocused on new collective housing located in tense areas.
- It will also concern the purchase of old housing in relaxed areas subject to renovation conditions.
If you want to benefit from the PTZ before it is modified and your real estate project is already well advanced, it is best to hurry.