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Funding your property purchase

Are you planning to buy property? Work out your budget according to how much you can borrow, the loans available and any financial aid you may be eligible for.

Home    Buying    Funding your property purchase

Help working out your budget

You can contact :

  • Your bank

 

  • Your company’s financial advisor (for companies with +20 employees).
    Ask your company’s “organisme collecteur” – the body responsible for collecting company contributions – about the free banking intermediation service (help to find the best offers on the market, a single contact for all your real estate financing, optimisation of total financing costs, putting together and submitting a mortgage application) which offers a tailor-made solution for company employees wishing to buy a home.

 

  •  ADIL – Housing Information Agency
    Advisors from Adil can provide a free personalised assessment, based on your current situation and future prospects: financial survey, information about the different types of mortgages and loans available, legal aspects etc. www.adli06.org

 

Help for property buyers

Mortgages and loans

Traditional bank loans

A mortgage or loan can be taken out to cover all or part of the purchase of a property, the cost of construction or of home improvements. A mortgage is granted by a bank or specialised financial organisation and is established over a long period (more than 20 years, on average).

PTZ zero percent loan

Changes in the state-aided PTZ (Zero Rate Loan) came into effect from January 1, 2016. This means-tested loan is granted to help fund the construction or purchase of a new build or the purchase of an existing property needing renovation work on condition that the borrowers have not owned their main residence in the previous 2 years. The loan may also be granted to tenants of social housing (subject to means-testing) who wish to buy a property from a controlled rent housing organization (HLM) or a PPP.
The amount of the loan depends on the location of the project and the number of people who will occupy the property. It may cover up to 40% of the purchase price.
Repayment of the PTZ loan repayment arrangements are made according to the borrower’s resources and the location of the property with the possibility for households to start repaying the loan after 5, 10 or 15 years.
The PTZ loan, which is granted by most banks and financial institutions, does not prevent borrowers from taking out any other loan.

PAS Homeownership social loan

The homeownership social loan (PAS) is a state-approved and regulated mortgage with a fixed upper limit interest rate granted by certain financial institutions. It is designed to promote homeownership among low to middle income first time buyers. Borrowers may be eligible for APL personalised housing aid

Who can benefit?
Households wishing to buy, build or renovate their main residence and whose joint income (including all members of the household intending to live in the property) does not exceed an upper limit.

Who to contact?
Your bank or approved financial institution.

Approved loans

An approved loan is granted by a bank or financial institution in agreement with the French state. It may be used to fully finance the cost of construction or purchase of a new-build or existing property , but also the costs of certain home improvements.

An approved loan is reimbursed with interest.

Who can benefit?

Any individual wishing to build, buy or improve a property can benefit from an approved loan, which is not means tested.  The borrower may be eligible for  APL (personalised housing allowance).

Who to contact?

Your bank or a State-approved loan company.

PEL and CEL

If you have a CEL (property purchase savings account) or a PEL (property purchase savings plan) you have the right to take out a  subsidised mortgage.

Who to contact?
Your bank or state-approved mortgage institution.

PAL home ownership loan

The PAL home ownership loan (previously called the 1% housing loan) is granted, (under certain conditions)  to employees of private companies (with a workforce of >10) for the purchase of their main residence.

Who can benefit ?
Employees of private (non-agricultural) sector companies belonging to the scheme.

Amount?
The amount of the loan, which depends on the location of the property, may cover up to 50% of the final cost with a minimum and maximum amount for each zone (minimum €6,400, maximum €17,600). The interest rate is 1,5% (nominal annual rate excluding insurance and fees).

PSLA – Social housing right to buy loan

The social housing ownership loan (PSLA) was set up to allow middle or low income families to get on the property ladder by giving them the right to buy their home after a minimum period as tenants.

Who can benefit ?

The income of the household must not exceed the maximum set according to the size of the household, and the location of the property.

Other loans

Most pension funds, complementary health insurance and works councils offer low interest loans to help finance home improvements or extensions.

Who can benefit ? 

Conditions (rates, amounts, eligibility) vary from one organisation to another.

Who to contact ?

Your pension fund, complementary health insurance and works council.

Financial aid

Personalised Housing Allowance (APL)

Personalised Housing Allowance  (APL) is paid directly to your lending agency. The amount is deducted from your mortgage payments.

Who can benefit ?

You may be eligible for personalised housing allowance (APL) if you are paying fees on a loan (Prêt d’Accession Sociale (PAS), Prêt Conventionné (PC) and if you are on a low income. For main residence only.

How ?

The amount of the allowance depends on a number of elements : income, family situation, type of housing, location, rent, number of dependents. The allowance is paid monthly to the main lending agency. the amount is deducted directly from the monthly payments and is reviewed at least once a year.

Housing allowance (AL)

Housing allowance (AL) is paid to homeowners to reduce their spending on mortgage payments when they are first time buyers.

Who can benefit?

If you have a low income, whatever your age, your family or professional situation, you may be eligible for a housing allowance for your main residence.

How ?

The amount of the allowance depends on a number of elements: income, family situation, type of housing, location, rent, number of dependents. The allowance is paid once a month and reviewed at least once a year.