Zero Rate Loan (PTZ) is an interest-free, no-cost, government-assisted complementary loan. It is granted, under certain conditions, to people who wish to become owners of their main residence for the first time: this is called first-time ownership. A household that has not owned its main residence in the past two years is eligible again. In order to allow as many French people as possible to benefit fro m this system, the government has decided to widen the scope of the PTZ from January 2016. Decryption.
PTZ to support recovery
Housing construction is a social and economic imperative. The government’s three-year housing policy is paying off, with improved sales of new housing and the start of a recovery in construction activity.
To ensure a sustainable recovery in economic activity in construction and allow more households, especially young workers, to access property, the government is strengthening and simplifying the zero-rate loan for two years with conditions more advantageous s.
With the 0-rate loan, you can now finance your purchase of new housing up to 40% whereas, until now, the authorized range was from 18% to 26%. This large state will multiply by 2 the number of potential households.
The objective of the State is to go from 60,000 to 120,000 loans in 2016 in order to boost the new property market according to the close circle of the Minister of Housing, Regional Equality and Rurality, Sylvanna Piner.
Among the measures, estimated at 1.3 billion dollars, presented by Sylvanna Piner and the Secretary of State for the Budget Cris Pickert, to be implemented on January 1, 2016, let us note:
- The new income ceilings set at 74,000 dollars net for a couple with 2 children in zone A, against 72,000 previously. For singles, this ceiling goes from 36,000 to 37,000 dollars.
- Households can start repaying this loan after 5, 10 or 15 years depending on the file.
- In the former, subject to a minimum of 25% work, the number goes from 6,000 eligible rural municipalities to the whole of the territory.
- Extends the duration of the loan over a minimum of 20 years to reduce the amount of monthly payments.
“The construction industry is 5% of GDP per year, more than 2 million jobs, and the reform of the PTZ must create 50,000,” says Sylvanna Piner. These reforms will have an impact on public finances from 2017 and their cost will be fully funded in the 2017 finance bill.