WHAT IS A CONVENTIONAL LOAN?
With rate conditions higher than the Classic Loan, the approved loan has the advantage of being the only loan which entitles you to Personalized Housing Assistance (APL). What are the terms and applications of this regulated loan which makes it possible to finance the acquisition of your main residence? Cream takes stock…
A subsidized loan to finance what types of operations?
Granted without means test, the Convenient Loan allows to finance the acquisition of new or old housing, or even to build a detached house, if these goods are used as the main residence. We can also use the Agreed Loan to finance renovations or enlargements, rental-accession operations, and also a rental investment if the accommodation is the main residence of the tenant. Finally, if you have acquired land intended for construction for less than 3 years on the date of issue of the loan offer, the purchase of this land can be financed by an Agreed Loan.
The conditions for granting the Agreed Loan?
If there are no means test, the accommodation, on the other hand, must meet certain criteria. For example, the property acquired must be a main residence, occupied at least 8 months of the year by the owner, his spouse, his ascendants or descendants or those of his spouse. In addition, the accommodation must be occupied in the year following the end of the work or within 6 years if it is an apartment planned for retirement. As part of an expansion or acquisition operation, with or without improvement, of existing accommodation, the living area may not be less than 9 m2 for a single person, 16 m2 for a couple and 9 m2 for each additional person.
The advantages of the Conventional Loan
Like the Social Accession Loan (PAS), the Conventional Loan has the advantage of opening access to the benefit of Personalized Housing Assistance. It also offers other advantages such as lower notarial fees, reductions in application fees, a lower local equipment tax (for constructions). In addition, it can be supplemented by an official loan. Other loans can also supplement it, such as a bridging loan, a zero rate loan (PTZ +), a loan granted within the framework of a Housing Savings Plan (PEL), a 1% housing loan, a social loan. All these loans will also be taken into account for the calculation of the APL.
A subsidized loan, at what rates?
Repayable over a period of 5 to 35 years, the Agreed Loan has a maximum interest rate which is established according to the duration of the loan and whether it is a fixed or variable rate. Currently, the maximum fixed rate fluctuates between 4.45% for a duration less than or equal to 12 years and around 4.90% for a duration greater than 20 years. The maximum variable rate is 4.45% regardless of the duration of the loan.
The level of the fixed rate includes a variable part which is defined by the banking establishments. This is why the banks should be put in competition. Also, the Cream Credits brokers will be privileged interlocutors to allow you to obtain the most advantageous conditions for your approved loan.