Property: Does the Zero-Interest Loan Apply to You?

Since the beginning of 2015, certain properties can be purchased using a zero-interest loan. 6,000 communes are affected in France. Indeed, the objective set by the government is to “rehabilitate old housing in rural areas.” Certain old properties on a list of 5,920 French communes are now open for purchase while benefiting from a zero-interest loan (PTZ).

How are communes selected? Certain criteria are taken into account: the rural nature of the property, the level of existing services and facilities, and the potential for housing to be rehabilitated that could be brought back onto the market.

Nevertheless, other conditions are mandatory in order to benefit from the PTZ. Improvement works amounting to at least 25% of the total cost of the operation, to be carried out by the buyer, must be completed within 3 years (from the date of the loan being issued).

The terms “improvement works” encompass the creation/development of habitable/annexe surfaces, sanitation, modernisation, or works enabling energy savings to be made.

Regarding the latter, only the amounts not funded by the eco-PTZ are counted towards the improvement works to be carried out. The amounts and resource ceilings for benefiting from the loan are the same as those defined for the PTZ in new-build properties.

The Deputy General Director of mortgage broker CAFPI, Philippe Taboret, believes this system should be applied across the entire territory: “While waiting for the new-build property market to recover, such a measure would make it possible to put back on the market in tense areas properties that are currently available and unused because they are degraded.” Additionally, according to him, this scheme would enable more young people to access the housing market.