The new provisions for zero-interest loans: a beneficial measure for French households

The government has decided to relax the conditions of the zero-interest loan to support households and revive real estate investments. This announcement, made by the Minister of the Economy Bruno Le Maire, is an encouraging sign for future buyers.

A helping hand for first-time buyers

To buy their first home, many French households use a zero-interest loan (PTZ). This financial tool allows them to borrow without incurring additional costs linked to interest. However, strict conditions are in force to be eligible for the PTZ, particularly in terms of income and location of the property. Thus, depending on the areas where the property is located, the resource ceilings differ.

Tightening then relaxation of the award criteria

In 2018, the government tightened these criteria in order to focus the PTZ more on new construction in certain tense areas. Zones B2 and C (rural areas, small and medium-sized towns) had thus seen their PTZ quota drop drastically, falling to 40% and 20% respectively, compared to 100% previously.

Following requests from professionals in the sector and taking into account the difficult economic situation, the government has just announced that it is relaxing the conditions required to obtain a zero-interest loan. The measure will thus make it possible to support not only first-time buyers, but also the entire real estate sector, in particular builders.

What are the new conditions?

From now on, future buyers will be able to benefit from a PTZ of up to 15% of the value of their real estate for zones B2 and C, a significant increase compared to the 10% and 5% previously in force. In addition, this measure applies now, without waiting for the end of 2021.

To better understand these new provisions, here are some concrete examples:

• A couple with two children wishing to buy a new home in zone B2 will now be able to borrow up to €243,000 instead of €225,000 previously.
• In zone C, the maximum loan amounts will increase from €106,000 to €114,000 for a single person and from €238,500 to €257,000 for a large family.

These increases in ceilings, coupled with still low borrowing rates, should encourage more households to realize their real estate projects.

Positive effects expected for the entire real estate sector

The relaxation of PTZ conditions was a recurring request from real estate professionals, particularly builders. Indeed, they believe that this measure could revive investments in new construction and improve the energy performance of French housing.

Support for businesses in difficulty

The construction sector has been hit hard by the economic crisis caused by the pandemic. Many businesses today are having difficulty bouncing back, and many fear for their future. In this context, the expansion of the PTZ should help support these businesses and promote job creation.

Reasonable costs for public authorities

According to Bruno Le Maire, the additional cost for public finances will be relatively low. This amount would be estimated at several tens of millions of euros in the short term. It is therefore a pragmatic and beneficial measure for households, businesses in the sector and the national economy.

An opportunity for first-time buyers: act without delay

This new relaxation constitutes an excellent opportunity for individuals wishing to access property for the first time. However, we should not delay, as conditions could change quickly, depending on subsequent government decisions.

In short, this measure represents a major step forward for first-time buyers looking for accommodation. The new provisions will now allow a greater number of households to realize their real estate projects while supporting the struggling construction sector.