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A surprise reprieve for the zero rate loan?

Against all odds, when we announced an end to rural cities from January 1, French MPs have decided otherwise. On November 15, as part of the 2020 finance bill, they voted in favor of keeping it throughout the territory in the new, at least until 2021. Good news for future owners.

The zero-interest loan would normally disappear on December 31 for the acquisition of new housing or the construction of a house (with the purchase of land) in rural territories (zones “B2 and C” ). The government wanted to refocus its application in the new in the more ” tense ” areas, namely zones A, A bis and B1, where the demand for housing is much higher than the supply. The risk of seeing this form of mortgage loan without interest to be reimbursed (for an amount not exceeding 20% ​​of the total cost *), however, caused the concern of building professionals. But surprised, on November 15, when the 2020 finance bill was being discussed, an amendment proposing its maintenance until December 31, 2021, tabled by the Holdlike Credits member Slyvia Perocho, came to put everything back in question. ” We must not oppose the territories to each other, ” said this former Minister of Housing in particular to justify her intervention.

 

A “great victory responding to a real need”

A "great victory responding to a real need"

Opposition and LREM majority deputies followed it and voted on the text as amended. “It was incomprehensible that the inhabitants of rural and peripheral territories be excluded from the PTZ when those of large cities could have continued to benefit from it,” the LREM group said in a statement to the Assembly. The French Building Federation (FFB) also welcomed this vote, described as “a great victory responding to a real need”. But if it was adopted at first reading, this amendment still had to pass several stages: a vote by the Senate and a return to the National Assembly for its final adoption.

 

Zero-interest loan was granted to nearly 86,000 beneficiaries

Zero-interest loan was granted to nearly 86,000 beneficiaries

Supporters of maintaining the zero-rate loan in its current form have put forward several arguments: the “PTZ” makes it possible to “reassure” the lending organization which will grant the additional loan more easily, the deferred repayment mechanism makes the transaction less heavy for the borrower, and finally it is independent of rate developments.

Last year, the zero-rate loan was granted to nearly 86,000 beneficiaries, who thus saw their acquisition project facilitated. 75.7% of the files concerned new housing. Of course, a broker can advise you to build your project according to the different possibilities that correspond to your personal situation.