The devices and bank loans are numerous for those who wish to invest in real estate. The zero-rated loan or bank loan is by definition a support mechanism for the homeownership of households and households with modest incomes. bank loan is means-tested if you have not owned your principal residence in the last two years. It is an interest free loan hence its remarkable notoriety for first time buyers. It’s part of what’s called regulated lending .
Which operations are eligible for bank loan?
One often thinks of the purchase of house but the bank loan is quite usable and operable for the construction of a new housing provided that its destination is the principal residence of the subscriber. THE loan itself can finance a maximum of 40% of the operation in new housing that you must complete with one or more loans from a financial institution , a bank or a personal contribution. Indeed, the rarer case, the personal contribution can be associated with the bank loan alone.
In the case of a so-called old property, while you also need to undertake renovation work representing at least 25% of the total cost of the operation , the zero-rate loan is also operable. This advantage for the works corresponds to the creation of additional living space or the modernization of the dwelling in question. Remediation or development of living space or energy saving works are included in this type of financing opportunity.
Obligation: For this to work, you must provide the lending institution with a certificate of honor and a quote for all the works.
Transforming a new or old premises is also possible with bank loan financing, but to deliver it, the financing bank must rely on the reference tax revenue shown on the tax notice.
What are the resource conditions for obtaining a zero rate loan?
The income conditions the maximum amount of the loan. They are based on ceilings, the composition of the home and the area where the property is purchased. In 2017, the amounts ranged between € 60,000 and € 138,000 . The smaller the household, the longer the loan period can be extended, which is particularly significant. Of course, the higher the household or household income, the shorter the loan period. The duration ranges from 20 to 25 years depending on the case and includes two periods to be distinguished which are:
- The 5-year, 10-year or 15-year grace period that allows the bank loan not to be reimbursed but the associated loan (s) that the bank has granted;
- A repayment period of bank loan variable from 10 to 15 years.
Apply for a zero interest loan
All financial institutions and banks now offer zero rate loans . Whatever happens, and as with any conventional loan, the bank that examines your financing record observes the solvency and repayment guarantees that the subscriber can offer. Here as for any loan, the bank is not obliged to grant the bank loan although it has a particular interest in selling this type of loan since the guarantee is state .