Regulated loans: the guide to regulated real estate loans

Also known as “soft loans”, regulated loans help buyers to complete their financing plan in addition to traditional home loans.

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How do these loans work, exactly? And what help can you get to buy your future home? This is what we will detail right away.

What is a regulated loan?

Regulated loans are loans governed by the state. They complement a traditional real estate loan, allowing subscribers to benefit from more attractive interest rates than the market. As a result, you increase your chances of convincing the lending institution to trust you, while significantly reducing the overall cost of your loan.

These regulated loans serve a very specific purpose: to help first-time buyers finance the acquisition of their principal residence. They have many advantages, in particular because they are cumulative between them. But beware: regulated loans are “complementary” loans: they only finance part of the acquisition.

What are the different regulated loans?

Let’s take a look at the regulated loans that you could qualify for as a borrower.

The zero interest loan

Of all regulated loans, this is probably the best known borrower. The zero-interest loan comes in the form of a loan-free loan (and not just interest-free!) Intended exclusively for first-time buyers. The amount covered by the PTZ depends on the price of the target property, its location (areas A, Abis, B1, B2 and C), the composition and resources of the household. It is used to finance a project to buy a principal residence in the new or old (knowing that the latter case is much more complex).

Social Accession Loan

SSP is part of the means tested conditional loans, just like the PTZ. It applies only to the acquisition of a principal residence in new (including off-plan) or in the former. It can also be used to fund major expansion or energy upgrades. Its rate is fixed by the State and it gives right to the APL.

The loan agreement

Among regulated loans, the loan is an exception. It is offered by banks and mortgage brokers who have entered into an agreement with the State, and its rates are freely fixed by the institutions (within the limits of ceilings defined by the government). When market rates are low, the contracted loan loses its usefulness. But it retains its two main advantages: to open right to the APL and to be subjected to no condition of resources.

The Housing Savings Plan

The famous ELP is a savings account dedicated to the financing of a real estate purchase. The amount saved is usually intended to be used as a personal contribution. The ceiling is set at € 92,000, including interest.

The Housing Action Loan

The former 1% Housing comes in addition to a home loan for the purchase of a principal residence. What differentiates it from other regulated loans is that it is offered by private sector companies with more than ten employees, as well as retirees who have been away for less than five years. The Action Logement loan is reserved for first-time buyers and subject to income ceilings. It allows to buy an old property (without works) or new (provided to respect the energy standards in force).

Note that public servants benefit from their own regulated loan.

Loans from local authorities

Let’s end this overview of regulated loans with an unrecognized credit granted by local authorities. These play a decisive role in home ownership, especially through the aid provided by municipalities. This aid is intended to help finance a new or old property as a principal residence, only for first-time buyers, and subject to resources. Some departments also offer their own supplementary loans.