The zero-rate loan (PTZ) will undergo major changes in 2024, with an increase in its maximum amount and an extension of its beneficiaries, according to announcements from the Minister of the Economy, Bruno Le Maire. The aim of these new measures is to support the real estate sector and respond to current market challenges.
An expanded and extended PTZ
The minister confirmed that the PTZ, which was initially to be abolished at the start of next year, will finally be extended for the whole of 2024. Bruno Le Maire justifies this decision by “ the collapse of real estate credit » and the government’s desire to facilitate access to credit. Indeed, the rise in interest rates, linked to inflation, has caused a collapse in requests for real estate loans. « IThere were 20 billion euros in monthly credits, we fell to 10 billion”underlined the Minister of the Economy.
Expanded eligibility conditions
The most significant changes concern the broadening of the eligibility conditions for the PTZ. The middle classes (between 2,500 and 4,000 euros of monthly income), until now excluded, will be eligible, thus encompassing around six million additional people.
In addition, the zero-interest loan will now concern 210 additional cities, specifically targeting areas where the difficulties of access to housing are the most significant. Among them, Bruno Le Maire cited “Bordeaux, Auxerre, Besançon, Bidart, Le Mans, Cournon d’Aubergne…”.
In terms of eligible property types, the PTZ will refocus on purchases of new apartments in stressed areas, or old housing with energy renovation work in non-stressed areas. It will now exclude the construction of individual houses, “for the sake of consistency with our objectives of combating land artificialization”points out the Ministry of the Economy, evoking “a courageous choice” of the government.
Increase in maximum amount
The minister also announced an increase in the maximum amount of the PTZ, from 80,000 to 100,000 euros. This increase aims to offer more substantial financial assistance to low-income households. In addition, the share that the PTZ may represent, compared to other loans taken out from banks, will increase from 40% to 50%, thus increasing the State’s contribution to the real estate projects of the households concerned. This share will vary depending on income, ranging from 20% for the highest eligible salaries to 50% for the lowest-income households.
In total, these modifications will represent an effort for the State of 850 million euros. “This is proof that we wanted to tackle the problem head on” he added.
Appeal to banks and future prospects
Bruno Le Maire also asked “banks to mobilize because when we work together we are more efficient”. Crédit Agricole, which supplies nearly 50% of PTZ, has agreed to provide up to 20,000 additional euros in zero-rate credits to buyers. Thus, a buyer in the lowest income bracket borrowing 100,000 euros from Crédit Agricole will be able to benefit from 70,000 euros of zero-interest loan – 50,000 euros from the State (50% of the amount of their loan) and 20,000 bank bonus euros.
Furthermore, the minister expressed his desire to work with the governor of the Bank of France to simplify the rules for granting credit and further relax the conditions, thus anticipating future developments in the sector.
This series of measures is part of the government’s desire to support the real estate market and provide concrete solutions to the challenges faced by French households in their home ownership project.
2023-11-12 14:39:19
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