The conditions for access to zero-interest loans will be relaxed, in response to the real estate crisis, announced Friday October 6 Bruno Le Maire, Minister of the Economy, daily regional South West.
“Faced with the increase in interest rates, we will expand access to zero-rate loans (PTZ) by simplifying the scale and increasing the ceiling”declared the minister in an interview. “This will be done in the coming weeks so that six million additional French people benefit”he added.
The PTZ allows households, mainly first-time buyers, to limit the cost of financing their main residence, in new buildings and if they carry out work, in particular by improving energy performance, in old buildings.
As its name suggests, the zero interest loan does not have any interest to repay. It complements another type of credit and can only represent a fraction of the total amount borrowed. In an interview given at the end of September daily The Parisianthe minister mentioned a revision of the scale to allow more “young households” to access it.
One hundred and fifty-four new eligible municipalities
The income ceilings not to be exceeded to be eligible for this state-assisted loan depend on the municipality of the property purchased. These are classified with letters, from A to C, reflecting the more or less strong imbalance between supply and demand.
“In addition, 154 new municipalities will integrate tense areas”classified A therefore, “and will therefore be eligible for intermediate housing and the new PTZ from 2024”added Mr. Le Maire, specifying that this represented 4.5 million inhabitants.
The real estate market is being hit hard by the rise in interest rates initiated a year and a half ago by central banks and subsequently passed on by retail banks in their credit policy.
The production of new housing loans excluding renegotiation fell in August in France below the 10 billion euros mark, to 9.9 billion euros, a first in more than seven years, announced Thursday the Bank of France.
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