Home loan: the various aids in the face of soaring rates
Recently, home loan interest rates have risen dramatically. Faced with this, here are 5 solutions to borrow at a lower cost.
The conflict situation in Europe continues to cause widespread inflation . According to data from the Insee , inflation in April reached 5.9% year on year. In addition, interest rates for a home loan are constantly increasing. Currently, the average rate for a mortgage subscribed over 20 years is 3.38% .
With all these price increases, you might think this year isn't ideal. for a real estate project . However, don't worry! There are options for reduce borrowing costs related to mortgage interest rates . In this article, we present 5 tips to achieve this.
1- The PTZ, or zero rate loan
The PTZ is a home ownership support device. As its name suggests, it allows you to make an interest-free home loan. Since 2022, beneficiaries could make a mortgage up to 51,828 euros . It's an incredible offer, isn't it? However, to benefit from it, certain conditions must be met.
Selon an article d' West France published on May 21, future borrowers must “check all the boxes” to obtain a PTZ. These conditions include an income ceiling for low-income households and the exclusive use of the loan for the construction of a main dwelling.
2- The Housing Action Loan
'For nearly seventy years, the vocation of the Action Logement group, a benchmark player in social and intermediate housing in France, has been to facilitate access to housing to promote employment', can we read in the official site of Action Logement in the “about us” sections.
To help low-income households access home ownership, Housing action offers an attractive home loan. According to the government website Service-Public , the interest rate on this loan has increased from 0.5% to 1.5% since March 1, 2023 . A rate well below the general rate of 3.38%.
The maximum loan amount granted is 40,000 euros. However, this offer is subject to certain conditions. According to our colleagues from Ouest-France:
“Only the purchase of a new main residence, a construction project, or the purchase of an old HLM housing rated A to E on the DPE is eligible. »
3. Mortgage from pension funds
pension funds can be an ally to obtain a mortgage . According to an article from Ouest-France quoting the broker Cafpi, the amount of this boost:
“is generally between 3,000 and 15,000 euros, repayable over a maximum of 15 years (often 5 or 10 years)”.
Eligibility requirements vary depending on your pension fund. However, one thing is certain: this offer is not reserved only for retirees. Indeed, active people can also benefit from this mortgage loan scheme offered by pension funds .
4. Home loan from local aid
Don't forget local support either. Some local authorities sometimes offer assistance for the purchase of housing in their territory . The Anil or the National Agency for Information on Housing, records municipality by municipality the various aids in force in each territory of France.
Thus, to find out about the mortgage loan systems in your municipality, please contact the Adil (Departmental Agency for Housing Information). According to Aurane Sérot, lawyer at Anil, in the article in Ouest-France, in each Adil:
'A local lawyer will know all the existing systems in your area and the help that can be mobilized'.
This organization can also help you understand the different formalities necessary for the purchase of housing.
5. A family loan
To avoid the interest costs of bank mortgages, you can request a loan from those around you . Of course, as it is not a donation, you will have to repay the money lent. The interest rate will depend on your contract. But there are some conditions to respect.
For a home loan of more than 1500 euros, the contract must be drawn up in writing, either between the two parties or formalized by a notary. In addition, if the amount of the loan exceeds 5,000 euros, it must be declared to the Directorate General of Public Finances .
Sources : ouest-france.fr , insee.fr , groupe.actionlogement.fr , service-public.fr
source: foozine.com
