The Zero Rate Loan (PTZ) in 2024: Strengthened support for homeownership
In 2024, the Zero Rate Loan (PTZ) remains an essential pillar of public policies aimed at facilitating access to property in France. This measure, introduced for the first time in 1995, has undergone several changes over the years in order to adapt to the changing needs of the real estate market and economic realities. In this new year, the PTZ is positioning itself as a strategic lever to encourage households to become owners of their homes.
The zero-rate loan (PTZ), which was to expire on December 31, 2023, was extended until 2027. A series of additional changes was announced at the end of 2023 for entry into force on January 1, 2024. The objective of this approach is also to correct certain imperfections of the PTZ as it existed until the end of 2023.
PTZ developments in 2024: A response to current challenges
The PTZ in 2024 is distinguished by adjustments aimed at better responding to contemporary issues in the real estate market. The main changes include an increase in eligible income ceilings and an adaptation of geographical criteria to take into account local specificities. A modification of the list of municipalities assisted by the PTZ allowed 209 municipalities to be transferred to tense areas in order to better support households living in these municipalities towards accession, this is the case of the municipalities of Evian-les -Bains and Thonon-les-Bains (also eligible in Pinel + zone A, find our article HERE).
The conditions of the zero-rate loan (PTZ) vary depending on the area where the accommodation is located. These adjustments demonstrate the authorities' desire to guarantee increased accessibility to property, while taking into account regional disparities.
Strengthening eligibility: Expanded access for beneficiaries
The PTZ in 2024 has broadened its scope of eligibility, allowing a larger number of households to benefit from this advantageous system. The income ceilings have been revised upwards, thus offering the possibility to a significant part of the French population to access this attractive loan. This measure aims to include a broader spectrum of society, thus promoting the diversity of owner profiles. A change in income ceilings must be respected in order to benefit from the PTZ. The first two tranches of the scale have been re-evaluated in order to be able to include more households. In addition, a fourth income bracket has been created, for income between €37,000 and €49,000 per year. An increase in the portion of the operation financeable by the PTZ, for households with the lowest incomes, this portion increases from 40 to 50% for the households concerned. The establishment of additional assistance for social housing tenants. For social housing tenants who wish to purchase their housing (system known as “PTZ HLM sale”), it is multiplied by two. The households concerned, who until now benefited from a PTZ of 10%, thus saw the financeable portion increase to 20%. The maximum amount of the PTZ is increased to €172,500 (compared to €138,000 in 2023).
A greener PTZ: Encourage the acquisition of ecological housing
In response to growing environmental concerns, the PTZ in 2024 includes additional incentives to encourage the acquisition of environmentally friendly housing. Real estate projects meeting high energy standards will benefit from advantageous conditions, thus promoting the development of a more ecological real estate stock. A refocusing of the PTZ on new collective housing in tense areas and old housing with work in relaxed areas. Old housing must be located in zone B2 or C in order to benefit from the system. It is reserved for new construction in zones A, A bis and B1. This orientation is part of a global approach to transition towards sustainable housing.
Flexible repayment terms: An asset for borrowers
The PTZ in 2024 maintains its fundamental characteristic: the zero rate, which means that borrowers do not pay interest. In addition, the repayment terms remain flexible, adapting to the financial capacities of households. This flexibility guarantees a progressive approach adapted to each situation, thus promoting the success of home ownership projects. The PTZ can have a duration of 20, 22 or 25 years with a deferred repayment period of 5, 10 or 15 years. During the deferral period, the borrower does not pay any monthly payments on the PTZ.
The PTZ in 2024, renewed support for real estate projects
In conclusion, the Zero Rate Loan (PTZ) in 2024 stands out as a strategic tool to promote homeownership in France. The adjustments made this year demonstrate the authorities' desire to adapt to the realities of the real estate market and respond to current concerns, particularly in terms of inclusion, sustainability and financial flexibility. By offering increased support to households, the PTZ actively contributes to the realization of real estate projects while participating in the positive dynamics of the real estate market in France.
It is important to emphasize that the conditions of application of the PTZ 2024 are still under discussion and will be voted on as part of the 2024 finance law at the end of the year.
Do you have a real estate project and would like to benefit from the PTZ? Discover our new programs HERE.
DECORDIER immobilier agencies can help you with your real estate project:
- Thonon +33 (0) 4 50 72 31 95 / e-mail : thonon@decordier-immobilier.com
- Evian +33 (0) 4 50 75 15 15 / e-mail : evian@decordier-immobilier.com
- Grand-Baie : +230 268 2828 / e-mail : contact@decordier-immobilier.mu
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