All you need to know about the zero-rate loan (PTZ): a helping hand to finance your property
The zero-rate loan (PTZ) is a scheme set up for first-time buyers wishing to purchase their principal residence. Designed to encourage home ownership, this interest-free loan can considerably reduce the total cost of your purchase. Find out everything you need to know about the PTZ in this article: conditions, operation, benefits and limits.
What is the zero-rate loan (PTZ)?
The zero-rate loan is a government-subsidized loan for households wishing to become homeowners for the first time, or who have not owned their main residence in the last two years. The loan is means-tested and enables part of the purchase of a property to be financed interest-free.
The PTZ cannot finance the entire price of a property, but must be combined with another property loan or a personal contribution. It applies equally to the purchase of a new home and to certain older homes under specific conditions.
How does the zero-rate loan (PTZ) work?
The amount of the PTZ depends on a number of criteria, including
- household composition: the number of people in the household has a direct impact on the amount you can borrow
- income: income ceilings are set according to the property's geographic zone
- geographical zone: the location of the property (zone A, B1, B2 or C) plays a key role in calculating the amount of the loan and eligibility for the PTZ.
Repayment of the PTZ is deferred and spread over a maximum of 25 years. This deferral can be up to 15 years, depending on your income, which reduces the initial financial burden after purchase.
What are the advantages of the PTZ?
The PTZ offers several advantages for first-time buyers:
- zero interest: you pay only the capital borrowed, with no interest costs
- easier access to home ownership: by reducing the total amount to be financed with a conventional loan
- a deferred repayment period that gives you time to absorb the costs of installing or fitting out the property
- an accessible scheme: both for new homes and for certain older homes to be renovated in specific zones.
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What are the limits of the zero-rate loan (PTZ)?
Despite its many advantages, the PTZ also has its limits:
- a ceiling on the amount: it can only finance part of the purchase, often around 20% of the total price
- strict income ceilings: excluding certain households with higher incomes
- unequal eligibility zones: the benefits of the PTZ are greater in prime areas (A and B1) than in rural areas (C)
- specific conditions for older homes: work representing at least 25% of the total cost of the project is often required, as well as an energy performance rating of at least D (DPE).
How to optimize your project with the zero-rate loan (PTZ)?
To make the most of the PTZ, you need to prepare your real estate project carefully. Here are a few tips:
- assess your resources: check that you meet the income ceiling
- choose the right location: opt for areas where the PTZ is most advantageous
- anticipate a complete financial package: the PTZ must be combined with other sources of financing to cover all costs
- get support: a mortgage broker or bank advisor can help you structure your project and maximize your benefits
the zero-rate loan (PTZ), an ally for your real estate project
The PTZ is an undeniable asset for first-time buyers, but it requires a detailed understanding of its mechanisms to be fully exploited. By taking into account your income, the location of the property and your long-term objectives, you can use the PTZ as a real lever to make your real estate project a reality.
If you need help understanding how to integrate the PTZ into your project? Don't hesitate to contact a mortgage brokeror your bank advisor.
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