Due to newly relaxed rules, the state-backed zero-interest home loans scheme has been extended to six million more households. This expands the portion of the population eligible for the system to 29 million households.
A scheme to help first-time buyers get on the property ladder has existed in France since 1995, but a new ruling regarding income thresholds on 1st April has opened up the prêt à taux zéro – zero-interest loan – system to an additional six million households. Â
This marks the first change to the scheme’s eligibility rules in eight years. Â
Potential home buyers in the first two income brackets can now obtain zero-interest loans of up to 30% of the total cost of a property depending on the region. Households in the lowest income bracket can benefit from 50% zero-interest loans, up from the 40% previously available.
Additionally, a new income bracket for earners of between €37,000 and €49,000 per year has been created. Households in this range can apply for loans of up to 20%. Full details on income brackets and thresholds can be found here. Â
The prêt à taux zéro system was due to stop at the end of 2023, but it has now been extended until 2027. For more information on the scheme, click here.Â
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Could you benefit from France’s zero interest housing loans?
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Photo source: Simon Spring