The zero per cent loan is one of the most appreciated by the first buyer for the persons buying a property for the first time. It forms a financial aid to help buying a main residence for the first time, on some conditions, among which:
- The totality of the incomes must not be beyond a certain amount, set according to the number of persons living in the habitation and where it is located.
- Living in the habitation bought thanks to the PTZ within a year after its acquisition or the end of the works.
- Not to put for rent the habitation for a fixed period after the acquisition.
- It must only be used to finance part of the acquisition, the rest of the financing must come from your own money or other loans...
- It must concern an acquisition in a new construction or one of an old property with heavy works.
The Finance Act 2016 provides some modifications to the already existing dispositions concerning the zero per cent rate loan.
An extension of the geographical zones concerned by the zero per cent rate loan
The zero per cent rate loan concerning the acquisition of an old property was until now limited to certain precise zones, it is now extended to the whole territory .
We remind here that the PTZ does not concern all the old properties, only those that requires heavy works that correspond to a total renovation, as well as properties for which the works represent 25% of the total cost of the transaction (creation of extra living space, works to improve energy consumption, etc).
An increase of the share of the transaction that can be financed by the PTZ.
Until December the 31st 2015, the zero per cent loan could not exceed 35%: in other words, it could not finance more than 35% of the total of the real estate transaction. This limit has been raised to 40% in 2016. The 60% left must be financed through another way (personal funds, other types of loans, etc).
The exact ceiling amount is determined according to the number of person living in the habitation as well as the geographic zone it is located in.
New in 2016 : rules regarding rental linked to a PTZ are eased
Until now, the zero per cent rate went hand in hand with very strict rules regarding rental. The habitation bought thanks to the PTZ could not be rented until the loan was not entirely paid back. It was a way to make sure that the owners would use the habitation as their main residence.
Henceforth, for all the habitations bought since January the 1st 2016, this prohibition upon renting is limited to 6 years , allowing a better flexibility of the real estate market.
Moreover, many exceptions to this 6-years time limit exist which allow to put the property for rent faster: for example, if you are transferred regarding your work, if you divorce or put an end to a PACS, if you are granted an invalidity card or if you go through an unemployment period that exceeds a years, you are allowed to put your property for rent earlier.
Of course, some rules apply: for example, the rent is ceiled: the rental can neither be seasonal nor furnished, etc.
The whole set of these measures nonetheless go towards an ease of the conditions to access a zero per cent rate loan, which should facilitate the mobility of owners.