To allow everyone to own a home, the State has set up a number of supervised loans, called regulated loans. They guarantee borrowers specific rights and conditions of mortgage.

Regulated loans only concern projects relating to the main residence. The conditions are advantageous for the borrower, the State capping the rates. In addition, some of these loans benefit from Personalized Housing Assistance: you can use these additional resources to repay your credit.

There are several types of state-regulated home loan: zero-rate loan, approved loan, home ownership loan (PAS), home savings plan.


The Zero Interest Loan

Interest Loan

PTZ principle

Set up by the government in 2005, the zero-rate credit is intended for first-time buyers of real estate. It was designed to help French people own their main residence.
The zero-rate loan complements other loans: it cannot alone finance the entire financial investment. It is subject to many conditions:

Conditions relating to the nature of the borrower

The zero rate loan therefore only concerns individuals making the first purchase of real estate, and only in the case of a main residence. The beneficiaries of this measure must not have owned at least two years before obtaining the zero-rate loan, unless they have been transferred for professional reasons.
In addition, zero-rate credit is subject to resource ceilings. The borrowing household must have taxable income not exceeding a certain threshold, determined according to the number of people in the household and the place of purchase of the accommodation.

Conditions relating to the nature of the property

The property must be new or under construction housing, old housing, professional premises converted into a dwelling, or housing subject to a rental-accession contract.

Acceptance conditions

The loan at Zero rate cannot exceed 20% of the total amount of the accommodation, and 50% of the loans taken out by the borrower. Otherwise, it will not be granted.
As for the duration over which the reimbursement extends, it depends on the household income. The lower the income, the longer the repayment can be.


The loan under agreement

loan agreement

Principle of credit agreement

The loan under agreement (or credit under agreement) allows the household using it to benefit from Personalized Housing Assistance (APL).
The features of this loan are:

  • a relatively high government-set interest rate;
  • a loan term fixed between 5 and 35 years;
  • no means test required;
  • can finance the entire investment;

Conditions relating to the nature of the borrower

The credit agreed must be the first property purchase of the individual.

In addition, it must be the main residence of the buyer, or the tenant if it is rental accommodation.

Advantages and Disadvantages of the approved loan

The loan under agreement has the advantages of being able to finance 100% of the purchase, of being able to benefit from the APL as well as from the rental residence, SCI and bank guarantee. Finally, the loan under agreement is available to everyone, without means test.
However, the credit under agreement has some drawbacks: the buyer / tenant must live within one year from the date of acquisition or the date of completion of the work. In addition, there are so-called “comfort” constraints: it must measure at least 9m² for a single person, 16m² for two people and 9m² for each additional person. Finally, its amount does not cover notary fees.


The Social Accession Loan (PAS)

The Social Accession Loan (PAS)

Principle of PAS

The Social Accession Loan is a special credit agreement. Unlike the latter, it is subject to resource constraints (same standards as for the zero rate loan), but in return offers a lower rate of 0.5%.

The characteristics of this loan

  • a relatively high interest rate set by the State (varying between 5.80% and 6.15%)
  • a loan term fixed between 5 and 35 years;
  • resource conditions similar to the zero rate loan;
  • can finance the entire investment;

Conditions relating to the nature of the borrower

The Social Accession loan must firstly be the individual’s first purchase, but also constitute their main residence.

Advantages and Disadvantages of PAS

Like the loan under agreement, the Social Accession Loan has the advantage of being able to finance 100% of the property, and allow the borrower to benefit from APL. Application fees are capped at $ 457, and warranty costs are reduced. Finally, the loan is guaranteed by the Social Accession Guarantee Fund, which takes over from the borrower if the latter proves to be in default.
It has the disadvantage of not covering notary fees.


The Home Savings Plan (PEL) and the Home Savings Account (CEL)

The Home Savings Plan (PEL) and the Home Savings Account (CEL)


The Housing Savings Plan and the Housing Savings Account allow you to obtain a mortgage on advantageous conditions.
It works in two stages:

  • Initially, the individual regularly feeds his real estate savings plan. This is the savings phase. It must last at least 4 years for the ELP, and 18 months for the CEL.
  • Secondly, the individual can obtain a loan. This is the credit phase. The loan is proportional to the savings period on the one hand and the conditions negotiated at the opening of the PEL / CEL on the other.

Conditions relating to this type of credit

Several conditions govern the Housing Savings Plan and the Housing Savings Account:

  • The savings phase must last at least 4 years for the ELP, and 18 months for the CEL.
  • It finances the purchase of land, the construction of housing, the acquisition of new or old housing, the expansion or renovation of housing.
  • The ELP is capped at $ 61,200 for savings, and $ 92,000 for credit.
  • The minimum deposit at the opening of the PEL is $ 225. The minimum annual deposit is 540 $.
  • If the ELP is not used after 10 years, it cannot be extended again.

Advantages and disadvantages of PEL and CEL

The advantage of home savings plans is that they have attractive credit rates, and they are often free of administration fees. Interest received during the savings phase is tax exempt (excluding social security contributions). As for CELs, they benefit from more attractive borrowing rates, but their savings rates are reduced to the same extent.
The disadvantage is that the loan contracted is made in proportion to the savings deposited: the higher this was, the more the borrowing conditions are conciliatory. In addition, the duration of the loan depends on the amount borrowed: the higher it is, the shorter the loan duration!