Bonus for first time buyers
Interest-free loans for home purchase doubled – and more help is available for those on low incomes struggling to buy
THE zero-interest loans (prêts à taux zéro - PTZ) available for first-time buyers of new-build homes, have been doubled - for this year only. This is part of the government’s “economy relaunch plan.”
The loans are means-tested but according to the government about 80% of people in France are below the relevant income thresholds and so can benefit. These are, for a couple, in Zone A (Paris area, Côte d’Azur and Swiss border) €43,750 and in other areas €31,588.
The amounts available vary according to your income, the value of the home you are buying and its geographical location.
For example: a childless couple buying a home worth €180,000 in the Ile-de-France can now get a loan up to €45,000 - a quarter of its value - up from €22,500 previously. This would have to be reimbursed over a maximum of 15 years at €125/month, then for four years €468.75/month.
You can work out your own entitlement using this online calculator (you need to know what your last assessable income figure was for your income in 2007)
Also for this year, the ceilings to get a PAS (prêt d'accession sociale) - a loan at a favourable rate for anyone buying a main home - have been raised by 25% to be the same as those for the PTZ.
People getting these loans - which can cover the total cost of the home purchase - are also eligible for help towards paying the instalments from a benefit called aide personnalisée au logement. You can ask your bank about both of these loans, which are subsidised by the government.
