29 million households in France now eligible for zero-interest home loans

zero-interest home loans

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.  

This marks the first change to the scheme’s eligibility rules in eight years.  

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.  

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

Read related:

Could you benefit from France’s zero interest housing loans?


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Photo source: Simon Spring