The Content Of The Article:
  • 2. 2016: new for the allocation of APL
  • 3. A reform of the Hoguet law in sight for 2016?
  • 4. Property prices: the forecast for 2016
  • 5. Is 2016 a good year to invest in real estate?
  • The Government has recently announced the changes to the Zero Rate Loan (PTZ) for 2016. This has been simplified and is now aimed at a wider audience, which according to the Government, should help promote homeownership.

    In 2016, the PTZ for the renovation can be awarded throughout France

    In 2015, only 5,900 rural communities opened the right to obtain the PTZ for the renovation of an old dwelling. For 2016, this loan applies to all of France, but the income ceilings and loan amount will remain higher in so-called "tense" areas. Similarly, to qualify for the PTZ to renovate your home, you must plan to perform the work within 3 years of the issuance of the loan, and the amount of work must be at least 25 % of the total cost of the operation.

    The PTZ applies as well in the new as in the old

    From this year 2016, all first-time buyers are eligible for PTZ, they want to buy a new home, an old housing to renovate, whether an apartment or a house. The only requirement for the beneficiaries of the loan will be to occupy the housing they financed with the PTZ, at least 8 months per year, and for a period of at least 6 years.

    Higher income ceilings

    Obtaining PTZ is always subject to income ceilings, fixed according to the area where the housing is located, and according to the composition of the family. For 2016, these ceilings have been re-evaluated, as follows:

    • The ceiling which applies to a single person will be 37 000 euros in zone A (Paris);
    • Always for a single person, the ceiling will be 24 000 euros in zone C, in rural areas;
    • For a household of 4 persons, the income ceiling imposed will be € 74,000 in zone A;
    • In zone C, the ceiling that applies to a household composed of 4 persons will be 48,000 euros.

    The loan amount has been raised

    In 2015, the PTZ allowed you to finance between 18 and 26% of your housing, depending on the area where the housing was located and the composition of the household. In 2016, the PTZ allows you to finance up to 40% of your new home, regardless of the geographical area in which it is located.

    More advantageous repayment terms

    If you are eligible for the PTZ in 2016, your monthly payments will be lower than those of 2015, because you can repay your loan in deferred, on 5, 10, 15 or 20 years for the most modest households, depending on your income and the number of people making up the home.
    Finally, be aware that the government wanted the number of repayment bands to increase from 3 to 5, which will contribute to the reduction of monthly payments.

    Learn more about different loan and mortgage offers.

    Video Instruction: House Ways and Means Committee - part 1 3/26/18