Who wants the skin of the Zero Rate Loan? This real boost from the state towards property candidates has recently been called into question. Yet this program makes it easier for thousands of borrowers to access credit. According to a given scale, borrowers can access capital of several tens of thousands of euros, and this without paying interest. Part of the financing of a property will therefore be covered by this “free credit”. In reality, interest is paid by the state directly to the bank.


Period of low interest rates

Period of low interest rates

Which is giving French property purchasing power back (+ 36% since 2008), certain studies call into question the zero-rate loan. Due to the low cost of real estate loans with an average rate set at 1.12% last November, the question of paying capital without consideration arises; at least in relaxed areas.

In this sense, the scope of the PTZ was discussed in Parliament during the examination of the 2020 Finance Bill. The deputies defenders of the PTZ therefore won their case at last reading Thursday, December 19, 2019. The final adoption of the PTZ in its 2020 version puts an end to a tussle started between, on the one hand, the parliamentarians of the Bourbon palace and the building professionals and, on the other hand, the government.


The future of PTZ after 2020


As a reminder, the initial project wanted by the executive was to reduce the scope of the PTZ. For this, it was planned to limit the granting of the loan at zero rate in the so-called relaxed market areas, more specifically in B2 and C. With such provisions, it is the rural territories which would be the most affected. A withdrawal from the PTZ for goods located in the countryside would therefore affect thousands of buyers.

Because with this interest-free loan, loan seekers benefit from an essential asset. Indeed, the capital obtained with a zero rate can be used as contribution in the context of real estate financing. The acquisition project is therefore more solid in the eyes of the bank. Access to the PTZ is defined according to the geographic area and the income conditions of the applicants.

With the maintenance of the PTZ in the state, the French wishing to settle green will not be impacted, at least in 2020. Indeed, if the PTZ is renewed for the coming year, nothing is sure yet thereafter.

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