The ready-to-zero rate is still elected once and is kept still for a few more years. Known as the PTZ, this system is especially heard in the nine and in real estate for a few common, whether of medium-sized cities or rural areas.
What is your loan at rate zero or PTZ ?
The ready-to-zero rate is in the French zone a bank loan in the social or socio-environmental. It has for peculiarity to have an interest rate which is equivalent to 0%. Established in the year 1995, this type of loan is granted according to the tax income of the borrower. However, it must be justified by means of a tax notice. Furthermore, the conditions must take into account the location of the real estate purchase.
The rate loan zero is a solution proposed by the government. It is established for the purpose of helping the French to be the owner of their principal residence. In fact, it is a repayable advance, which does not impose interest to the borrower. However, it is crucial that it needs to be declared to the tax services by the credit institution, including the bank or broker ready real estate.
The rate loan zero, a system highly advantageous
The rate loan zero or PTZ has been maintained by the deputies in mid-November last year through a vote at the meeting. And it deals with mostly all the questions in the nine in the field of real estate. In fact, this system has been extended two years and takes effect only on a few communes in the area B2 or C, in a few medium-sized towns or in rural areas that are not affected by the housing crisis.
In effect, the zero-rate loan for is a response to the protests of the real estate professionals and mayors in rural areas to the finance bill to 2018. It is the president and Emmanuel Macron, who has taken the trouble to respond to this request in the beginning of October 2017 and says that the loan zero interest will still be maintained for two years.
A system in full development
Although the zero-rate loan for a system in full development, it is encouraged to ensure that the level of loan to be lowered from 40% to 20% in the different affected areas during these two years, especially in 2018 and 2019. This has been advanced by the amendment by the general rapporteur on the Budget or LREM, Joël Giraud, and likewise, expose it to the various municipalities covered by a contract for the revitalisation of defense sites.
For this system, approximately 6-rate loans zero out of 10 (6/10) in the real estate sector nine will take full advantage to families who live in suburban and rural areas. However, this time, the rate loan zero is helped by the State, because it is he who takes charge interest at an annual cost of € 800 million. Thus, the loan to zero rate is granted by answering a few terms of resources, to families who want to get a residence for the very first time. Moreover, currently the cheap credit without proof is also a fast and effective solution that is offered to borrowers in the real estate field.