How to finance energy saving work in your home? Despite national and local aid, the remainder to be paid is sometimes too high for households. And access to traditional bank credit complicated for the most modest or the oldest…
To help them, a new tool, the “renovation advance loan” (PAR), was launched in February. The principle is as follows: the household who wishes to renovate their main residence is granted a loan, the capital of which they will only reimburse when the house is sold, or upon death. He therefore pays, each month during the term of the loan, only the interest, or even nothing at all when the interest is also payable in fine.
The Postal Bank, Crédit Mutuel and CIC have already responded to requests from the State and are offering this loan to households, with a rate of 2% in all three cases. The Banque Populaire Caisse d’Epargne (BPCE) group is also working on a proposal for the coming months.
Means-tested
To guarantee repayment, the bank takes out a mortgage on the property to be renovated. The financial establishments marketing the PAR also benefit from a partial public guarantee on the amounts lent. “We carry out a real estate appraisal at our expense to determine the value of the house and lend a maximum of up to 70% of this value”explains Yoanne Bobe, head of the credit offer at La Banque Postale.
In this establishment, the minimum granted is 3,500 euros and the maximum depends on the age of the client and the value of the property. The PAR of Crédit Mutuel and CIC starts at 5,000 euros, with a ceiling of 30,000 euros.
To be eligible, the borrower must receive income below the resource ceilings for low-income households, as defined by the National Housing Agency (Anah). For a household made up of two people, for example, the ceiling is set at 37,739 euros in Ile-de-France and 28,614 euros elsewhere. For a household with four people, it will be, respectively, 52,925 euros and 40,201 euros. It is the reference tax income, which appears on the tax notice, which is taken into account.
Like any mortgage loan, the PAR must be signed at the notary, and the mortgage costs are the responsibility of the borrower. On the other hand, there are no application fees or borrower insurance to take out. And no obligation to domicile his income at La Banque Postale. The borrower can also repay when he wishes without paying early repayment indemnities.
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