The French public authorities continue their crusade against housing qualified as “thermal sieves”. In this context, the devices are multiplying to help households renovate their property to make them less energy-intensive: advice, subsidies, zero-interest loans (PTZ)… Did you know that from now on, you can also borrow finance your work, and reimburse… Much later! Here is what you need to know about the “renovation advance loan”.
What is the “Renovation Advance Loan”?-iStock-Dave Collins
Advance renovation loan: why and how?
The PRA (renovation advance loan) is a financial product intended to help owners with the lowest incomes – often excluded from traditional bank loans – to renovate their homes. In most cases, these are goods which, in terms of energy performance, are classified F (emitting 56 to 80 kg eq CO2/m².year, and consuming between 331 and 450 kWh/m².year) or G (emitting more than 80 kg eq CO2 / m².year and consuming more than 450 kWh / m².year). These homes have a very significant energy impact, which the climate and resilience law intends to limit by forcing their owners to carry out renovations by 2028. Problem… Insulate your property, replace your windows, change your heating or production system domestic hot water is very expensive! The various subsidies certainly represent a boost, but the “residual costs” are often substantial. And if the PTZ option (zero rate loan) allows you to build a work budget, you still have to honor the monthly payments to repay it. For households that do not have the capacity, there remains the solution of the “renovation advance loan”: the State simply advances the necessary sum, in the form of a mortgage loan guaranteed up to 75% by the State, whose repayment will be deferred over time, without any time limit being imposed… The maximum deadlines are set, either on the occasion of the resale of the property, or on the death of the owner, on the occasion of liquidation of his estate.
Renovation advance loan: what are its terms?
The financing of your work, within the framework of the PRA, is entrusted to a credit institution, a financial institution or a third-party financing company (to date, only the Postal Bank, Crédit Mutuel and CIC offer this). In addition, the work must be carried out by a professional labeled RGE (recognized guarantor of the environment). The conditions of the loan (the amount granted and the interest rate) are set by the lender, and vary according to the age of the borrower and the estimated value of the property. Obtaining the PRA is subject to income limitation… A childless couple, for example, must prove a reference tax income of less than €28,614 in the region, and €37,739 in Île-de-France. Even if – in principle – the renovations of the property make it possible to accentuate its value, it is good to know that the guarantee granted by the State makes it possible to guard against a possible loss in value up to 75%, at the time of its sale. Finally, be aware that the PRA can be combined with other local and national systems (MaPrimeRenov’, eco-PTZ, energy saving certificates, aid from Anah).
