Zero Rate Loan System Extended and Strengthened: Find Out How You Can Benefit

2023-10-18 07:51:34

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To cope with the collapse in the number of real estate loans, the Minister of the Economy is strengthening and extending this zero-interest loan system.

In front of “the collapse of real estate credit», the Zero Rate loan (PTZ) is growing. From January 1, 2024, the maximum amount of the PTZ will increase from 80,000 to 100,000 euros, Bruno Le Maire announced this Wednesday. At the microphone of RTL, the Minister of the Economy outlined the contours of this reinforced system: in addition to the increase in the maximum amount, the maximum share that the PTZ can represent in a real estate loan is also increased, from 40% to 50% for households modest. Out of 100,000 euros borrowed, 50,000 might thus be borrowed at zero interest, underlined the boss of Bercy.

Likewise, the number of households able to receive a PTZ to finance their purchase of housing is increased. “The middle classes will be eligible for the zero ratedeclared the minister. You earn between 2500 and 4000 euros, today you do not have the right to PTZ. Tomorrow you will be entitled to it“. An expansion of beneficiaries which represents almost six million more French people according to estimates by Bruno Le Maire. Finally, “210 additional cities» will be affected by the PTZ. These are municipalities where “there are the most difficulties in finding accommodation such as Bordeaux, Auxerre, Besançon, Bidard, Le Mans, Cournon d’Auvergne…», listed the member of the government.

«We want as many households as possible to have access to a mortgage loan», justified Bruno Le Maire. The only solution to revive a seized up market where obtaining credit is “extremely difficult with increasing rates». «From 20 billion euros of monthly credit production, we fell to around 10 billion euros“, he observed.

Also read: End of Pinel, zero-interest loan… What the government’s plan to deal with the housing crisis contains

Strengthening the PTZ will cost some850 million euros» in Bercy, said the minister. The State finances the difference between the PTZ and the market rate loan. To support this effort, the minister appeals to the banks: “Other players must be on board in this desire to unlock credit rates. And the first players are the banks“. According to the minister, Crédit Agricole has already committed to doubling the stake, that is to say, adding an additional euro each time a euro is borrowed at zero interest. The boss of Bercy also intends to work with François Villeroy de Galhau, the governor of the Bank of France, to relax the rules for granting credit.

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