To help some households finance the acquisition of their home, the State allows them access to subsidized loans, more than substantial aid which comes in addition to the main loan. Their list is long. Here are a few, starting with the PTZ, probably the best known of the subsidized loans.
What is a subsidized loan?
A subsidized loan is an additional credit, subsidized by the State, by a local authority, or by a company (EDF, Engie for example). It is accessible to certain categories of the population (civil servants or first-time buyers, for example) or to specific operations (purchase of the main residence, renovation of housing, creation or takeover of a business). With the introduction of subsidized loans, the State wishes to favor certain borrowers and certain projects by bearing part of the interest, hence the principle of subsidization.
Combined with advantageous conditions, the subsidized loan always comes, except for one exception, in addition to the main loan, without being able to replace it; it is therefore capped.
There are a plethora of subsidized loans, it would be hard to make an exhaustive list that no one has yet seen fit to draw up. To find out if you are eligible for one or more subsidized loans, reason by area (real estate purchase, renovation work, adaptation of housing, sanitation, renewable energy), ask your company, your municipality, the general council, your pension fund, Anah (National Housing Agency) or a credit broker and your bank adviser.
Among the most distributed subsidized loans, here are 3.
The Zero Rate Loan or PTZ
Who does not know the PTZ, in place since 1995, and subject of many versions?! The basic principle is immutable: this interest-free bank loan is granted to first-time buyers for the purchase of their main residence. It is distributed by banks that have signed an agreement with the State, which grants them in exchange a tax credit equal to the amount of uncollected interest. Became PTZ+ in 2011, this loan could not be more subsidized, since it is free and without administration fees! It makes it possible to finance up to 40% of the total cost of the acquisition (purchase or construction, negotiation fees included, excluding notary fees), its amount being capped and calculated according to several parameters:
- the geographical area where the accommodation is located;
- the borrower’s income level;
- the number of people occupying the accommodation;
- the new or old character of the property, or housing from social housing.
In 2019, only zones B2 and C are eligible for the PTZ in the old.
The Action Logement loan
Formerly known as the 1% Housing employer loan, the Action Logement loan is offered to employees or pre-retirees of certain private sector companies (non-agricultural employing at least 10 employees) for the purchase of the main residence in new construction (purchase or construction including the purchase of land), in the old without work (minimum DPE D), or for the expansion of existing housing. Granted subject to means testing, this additional loan to the main credit is accompanied by a preferential rate of 1% and can finance up to 30% of the total cost of the operation, without exceeding the ceiling depending on the geographical area (between 7,000 € and €25,000). It can be combined with other assisted loans (PTZ, PEL, CEL, PAS).
The Social Accession Loan or PAS
Intended for people who buy/build their main residence (new or existing without seniority or work conditions) or who carry out work in the accommodation they live in, the PAS is granted subject to means testing for a period of between 5 and 30 years old. The ceilings vary according to the location of the accommodation and the number of people occupying it. Unlike other subsidized loans, the PAS can finance the entire cost of the project (excluding notary and mortgage fees). The rate may be fixed or revisable, and may not exceed a maximum rate set by regulation. Currently, the annual effective annual rate of reference over a period of 20 years must not exceed 2.80%, slightly below the rate of wear in force over this same period (2.97%). For memory, the TAEG aggregates all the costs related to obtaining credit (insurance, guarantee, administrative and brokerage costs, valuation of the property), excluding notary costs. We are still far from market rates: in August, the most modest borrowers were able to obtain an average nominal rate of 1.37% (excluding insurance and security costs) over 20 years.
However, the PAS has 3 significant advantages:
- the costs of examining the file are capped at €500;
- the security in rem (mortgage or surety) is exempt from land registration taxes;
- the remuneration costs of the notary are reduced.
Note: the official loan granted to tenured civil servants in addition to an approved loan or a social accession loan is no longer distributed. Civil servants can nevertheless receive two advantages through their mutual fund, provided that the bank granting the loan has established a partnership with this mutual fund: credit guarantee, free or at preferential rates, and preferential rates for the insurance of home loan.
