The advantages of the zero interest loan
The zero interest loan, also called PTZ, is a loan aided by the State. This loan is not intended to cover the entire cost of purchasing a property, but to come complete a traditional real estate loan.
To benefit from it, it is necessary to be first-time buyerthat is to say to access property for the first time and to meet the established resource conditions, because this loan is not not granted to households with high resources. If you meet the conditions, it offers the following benefits:
- As this is a loan for which the rate is 0%, it allows for considerable savings, since at present, the average rate for a loan is around 4%. This saves you thousands of euros.
- It is exempt from application fees. Even more savings!
- You can benefit fromdeferred depreciationthat is to say that you can start repaying it a few months after the purchase, which can be interesting if you cannot move into your new home without doing work there first.
- You run less risk of your traditional loan request from a bank being refused, because the amount to be lent to you is therefore less, which reassures the banks.
The reasons which push the Government to overhaul the PTZ
Faced with the sharp decline in the number of loans granted and the general crisis in real estate, The Government is looking for solutions and one of them is to expand the zero-interest loan. Indeed, if we look at the figure, we can only see that the number of PTZs granted has decreased by 17% between 2021 and 2022, with a greater drop during the last quarter of 2022 and 2023 seems to continue this momentum.
This decline is partly explained by the very restrictive criteria for granting conditions of the PTZ, by the inflation that we are currently experiencing, by the debt rate set at 35% and by the reluctance of banks who are reluctant to grant loans. However, we must not forget that to benefit from the zero-interest loan, it is necessary to have traditional credit in parallel. One does not go without the other.
The modifications envisaged for the PTZ
As you will see, some of these modifications, if validated, may be interesting for you, but others may block you in your project.
Extension of the zero-interest loan
This was to end at the end of 2023, it will be extended until December 31, 2027.
New resource limits
Currently, households with incomes between 2,500 and 4,000 euros per month are not eligible for this loan, they will be from 2024. The eligibility ceiling threshold would thus increase from 37,000 euros to 49,000 euros. This measure would allow 6 million additional households to benefit from the PTZ.
Increase in the portion that can be financed by the PTZ
Currently, 40% of the purchase cost can be financed by the PTZ. This share of financing could increased to 50%.
Recentering the PTZ
If until now the PTZ was granted for tall types of housingincluding for the acquisition of a new individual house, things could change.
Indeed, the Government is considering a severe refocusing of the PTZ on the purchase of new property in collective real estate in tense area and on the purchase of an old property in a relaxed area, subject to renovation. Moreover, the Government is considering moving 154 municipalities into a tense zone, which would make them eligible for the PTZ. As you have understood, new individual houses are completely excluded from the system.
Why do we have to hurry?
If your project is already well advanced, you are considering the acquisition of a property in a very specific municipality or the acquisition of a new individual house, you should no longer procrastinate and apply for your PTZ loan now if you are eligible for it, of course. Indeed, if the changes are passed, the 2024 version of the PTZ will mean that you will no longer be entitled to it.