The Zero-Interest Loan: A Homebuyer’s Beacon of Hope or Just a Government Placeholder?
The government has promised that the zero-interest loan will be extended next year to all of France,
although it is currently only available in urban areas. MEPs also propose making individual houses eligible
for PTZ once again.
© Arif/Adobe Stock – Since April 1, 2024, the PTZ no longer allows you to finance the purchase of a new house. Who would have thought we’d be dining on this sad platter of news? It feels like a really particular form of twisted irony.
Come 2025, the zero-rate loan (PTZ) will once again sprinkle its magic on first-time buyers looking at new apartments across France, not just the bustling urban centers. Yes, the Prime Minister fired up the magic machine during his policy spiel, promising to make homeownership less of a distant dream in the middle of a housing crisis. Are you ready to fight for your piece of the pie?
But hang on a second! Will individual houses return to this zero-interest party? Michel Barnier and Laurent Saint-Martin, despite being quote-worthy politicians, have steered clear of directly addressing this critical issue. In other words, they’ve played the government version of “don’t ask, don’t tell.” Still, deputies are throwing in amendments to the mix, including a shoutout from François Jolivet, who wants to make sure both collective and individual dwellings get invited to the PTZ feast.
No More “Just Urban”—Are Individual Homes Next?
Assuming the proposed amendments get approved (yeah, that’s a big “if” in politics), first-time buyers could once again wield the PTZ sword against the monstrous challenge of purchasing a detached house—of course, if you meet the criteria (income caps, first home, etc.). Seems straightforward enough, right? Or is it just another “you’re invited to our party” concept with a few asterisks flying around?
What About Those Ceilings? Let’s Talk Dollars and Cents!
And here’s another juicy amendment from MP Lionel Causse. He wants to hike up those transaction ceiling amounts for our dear old PTZ loans, all in the name of inflation. The existing limits haven’t been touched since 2014—an eternity in the world of housing prices. Under current laws, a couple (with a child, no less!) looking to build in the eye-watering zone A can only snag the PTZ if their acquisition is shy of a mere 270,000 euros! And don’t even get me started on singles—150,000 euros? Now we’re just being cheeky!
It’s as if the government’s rekindling romance with PTZ is more complicated than an episode of *Keeping Up with the Kardashians*. Are they really rolling out the red carpet for potential homebuyers or just throwing breadcrumbs and hoping we stay engaged?
So, whether you’re eyeing that charming little detached house or a swanky new apartment, buckle your seatbelts. The world of real estate in France is getting a facelift and, who knows? Maybe you’ll be one of the lucky ones enjoying a toast to your new home with a low-interest loan in hand!
Stay tuned for the latest news as we navigate this thrilling world of real estate, where every week brings new developments and—quite possibly—a new opportunity to secure your dream home.
The government has promised that the zero-interest loan will be extended next year to all of France, although it is currently only available in urban areas. MEPs also propose making individual houses eligible for PTZ once again.
© Arif/Adobe Stock
– Since April 1, 2024, the PTZ no longer allows you to finance the purchase of a new house.
In 2025, the zero-rate loan (PTZ) will once again finance the purchase of a new apartment anywhere in France, and no longer just in urban areas. The Prime Minister committed to this during his general policy declaration, in order to facilitate access to property for first-time buyersin the current context of the real estate crisis. The Minister of Public Accounts, Laurent Saint-Martin, indicated that this PTZ extension would be integrated into the finance bill for 2025, which Parliament begins to examine this week. A significant uncertainty remains: will you be able to benefit from the PTZ again to buy a new individual house? Indeed, since this year, first-time buyers are only entitled to the PTZ to finance the acquisition of a new apartment in tense areas, characterized by a demand for housing much higher than the supply.
Michel Barnier and Laurent Saint-Martin have not said a word about a possible reintegration of the individual house into the scope of PTZ financing. But the amendments to the finance bill that several deputies have just tabled are going in the right direction. Starting with that of François Jolivet, vice-president of the Finance Committee of the National Assembly, who, with all the deputies of the Horizons and independent group, “proposes extending eligibility for the zero-rate loan to all operations throughout the country, both for collective housing and for individual housing».
Also read: Real estate buyers, in these cities, you are now eligible for the zero-interest loan
Towards an increase in acquisition ceilings?
If this amendment is accepted by the government, and adopted by the National Assembly and the Senate, you will be able to again claim PTZ to buy a detached houseprovided of course that you are a first-time buyer and that your income does not exceed the ceilings in force for the granting of a zero-interest loan.
Another amendment likely to interest you is that tabled by MP Lionel Causse (Together for the Republic). It aims to increase the transaction ceiling amounts of the zero-rate loan to take inflation into account. Currently, a couple of first-time buyers with a child, who are building in zone A (very tense), for example, can benefit from the PTZ if the amount of their acquisition (excluding notary fees) does not exceed 270,000 euros. This amount is capped at 150,000 euros for a single person, still in zone A. These ceilings being unchanged since 2014, Lionel Causse proposes to “update”to take into account, in particular, the increase in housing prices that has occurred over the last 10 years.
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