With the current sharp rise in mortgage rates, the Zero Interest Loan (PTZ) is more than ever an essential product for those who can claim it. If you’re one of them, you’d better hurry: there’s only a few weeks left to take advantage of it in 2022.
Last call for boarding. To take advantage of a zero interest loan (PTZ) in 2022, it’s now or never. Given the processing times, a large proportion of banks will need to have submitted a complete file by the end of October to benefit from PTZ on the basis of income for year N-2, although a few options will remain in November , confirms Ccile Roquelaure, spokesperson for the broker Empruntis.
Why should we hurry? Simply because filing your file later may cause you to change your fiscal year. However, your income may not be the same from one year to the next. If there is an increase, you may no longer be entitled to repayment of the loan.
An increasingly attractive product
As the name suggests, PTZ is a zero-interest loan, set up for first-time buyers purchasing their main residence. Even better, there are no application fees and it allows the borrower to set up a repayment deferral that ranges from 5, 10 or 15 years depending on the borrower’s income. However, to take advantage of this, the latter must respect resource ceilings, which vary according to the geographical area of the real estate project (A, B1, B2 or C) and the number of people in the household.
| Number of people | Area A | Area B1 | Area B2 | C zone |
|---|---|---|---|---|
| 1 | 37,000 | 30,000 | 27,000 | 24,000 |
| 2 | 51,800 | 42,000 | 37,800 | 33,600 |
| 3 | 62,900 | 51,000 | 45,900 | 40,800 |
| 4 | 74,000 | 60,000 | 54,000 | 48,000 |
| 5 | 85,100 | 69,000 | 62,100 | 55,200 |
| 6 | 96,200 | 78,000 | 70,200 | 62,400 |
| 7 | 107,300 | 87,000 | 78,300 | 69,600 |
| 8 or more | 118,400 | 96,000 | 86,400 | 76,800 |
Even in times of low interest rates, as was the case at the beginning of the year, the zero-interest loan is an attractive product, notes Eric Wilson, head of loan settlements at Crdit Agricole SA. But it is true that with the rather strong and violent increase in credit rates and market rates, it is becoming more and more interesting.
For a project to buy an apartment for 210,000 euros
A couple living in Rennes (zone B1), with 10,000 euros down, want to take out a loan of 200,000 euros at 2.04%* over 20 years, with 0.30% insurance to buy a new apartment. For this, they must pay 240 monthly payments of 1065.56 euros, that is, 43,734.42 euros in repaid interest and 12,000 euros in borrower’s insurance. for a total credit cost of 55,734.42 euros.
Let’s imagine that this couple has a reference tax income of 42,000 euros two. He can for the purchase of a new property, require a PTZ of 75,600 euros. They must then take out a classic loan of 124,400 euros at a rate of 2.04% over 20 years. Taking into account borrower insurance of 0.30% as in the first example, the borrower couple will repay 980.13 euros over 20 years. The monthly payments for the first five years will thus be 18.90 euros for the PTZ (corresponding to the cost of the borrower’s insurance) and 961.23 euros for the main loan, including insurance. Over the next fifteen years, the monthly payment of 980.13 euros will be divided between the PTZ (438.90 euros) and the main credit (541.23 euros). For the borrower couple, the operation will cost a total of 30,693.97 euros including insurance, i.e. saving of 25,040.45 euros.
Now imagine that this pair can only benefit from the average amount allocated to a PTZ in zone B1, i.e. 67,996 euros. That monthly loan payment will be slightly higher (988.72 euros). Loan insurance on PTZ would cost 17 euros per month for the first 5 years. Then the monthly payment would be split between the PTZ (394.76 euros) and the classic loan (593.96 euros) for a total operating cost of 33,212.51 euros. Either this time saving of 22,521.91 euros compared to a conventional loan.
*Average price at the beginning of October 2022.
Also according to Eric Wilson, buyers who can claim the PTZ know this pretty quickly: Often, sellers guide their customers by explaining to them that they are eligible. It’s also a selling point for promoters. And of course, bankers can also guide borrowers as they put together the file: PTZ is well known by advisors. As the first distributor, it is a product we master and which is integrated into our advice on projects.
Professionals: cheapest online offer to limit your bank fees
Because PTZ is strictly regulated. For example, for a new apartment in Rennes (zone B1), the amount of the zero-rate loan will be calculated from 189,000 euros. A quota ranging from 20% to 40% of the size of the operation is then applied, depending on whether the home is new or old, the geographical area and the energy performance of this home. To take the example of Rennes, which is in zone B1, the maximum amount for PTZ will therefore be a maximum of 40% of 189,000 euros, i.e. 75600 euros.
| The number of people |
Area A | Area B1 | Area B2 | C zone |
|---|---|---|---|---|
| 1 | 150,000 | 135,000 | 110,000 | 100,000 |
| 2 | 210,000 | 189,000 | 154,000 | 140,000 |
| 3 | 255,000 | 230,000 | 187,000 | 170,000 |
| 4 | 300,000 | 270,000 | 220,000 | 200,000 |
| 5 and more | 345,000 | 311,000 | 253,000 | 230,000 |
Still, the future of PTZ is uncertain. Faced with the new housing crisis, Ple Habitation is campaigning in the French Construction Federation for the return of a PTZ, which would finance 40% of the total cost of the real estate project throughout the territory, while this rate is currently 20% in the class. B2 and C areas Conversely, an amendment tabled by three Renaissance MPs wanted to limit access to PTZ, particularly by removing support in less extensive areas under the pretext of PTZ’s ineffectiveness in facilitating access to the property. An initiative that will ultimately not be found in the final version of the Finance Act for 2023.
Property loans: duration, amount, contribution… what changes for new borrowers