No or little savings, incomes at the beginning of career sometimes modest … It is the lot of very young young people who thus meet real obstacles to obtain a mortgage. But today, state and local government aid, as well as some of the banks’ offerings, encourage young people to take up property.
Zero-interest loan: credit for young workers and first-time buyers
The Zero Rate Loan, or PTZ, is a means-tested, interest-free loan (calculated based on household size and location). It is a complement of one or more other credits. It is intended for the purchase of a first principal residence in the new one, or in the old one provided a certain amount of work is done.
The PTZ can be spread over 20 years and it also includes the postponement of the repayment start (deferred period) of 5, 10 or 15 years. The lower the household’s resources, the longer the loan period and the deferral period. Its financing can cover up to 40% of the amount of the acquisition.
Assistance from local authorities to acquire real estate
Many local authorities also offer credit support to young workers. In Bordeaux, for example, the Passport 1st housing is intended for first-time buyers investing in the municipality. Subject to resources, this device provides for the payment of a grant ranging from € 3,000 to € 6,000 depending on the composition of the home. It also includes agreements with several banks to enable borrowers to access high-performance loans, guaranteeing them good creditworthiness.
In Greater Lyon, Plan 3A is a device to help low-income and middle-income households who want to own a new apartment. A bonus of € 2,000 to € 5,000 is awarded according to the selling price of the property and the size of the household.
All grants from local authorities are listed on the website of the Departmental Housing Information Agency (ADIL).
Fees: the banks’ efforts
In general, banks are fond of young people wanting to acquire real estate, because it is a way for them to attract and retain a new clientele in the long term: ” Young people under 35 years of age” have not yet established banking relationships. The mortgage is the opportunity to develop a long-term relationship, with the key life insurance, auto credit, home insurance, health … “says Sandrine Allonier, Director of banking partnerships at Vousfinancer.com , a network of mortgage brokers. Some banks offer preferential rates, an additional loan at zero rates, removal of fees or loans for longer terms, may exceed 25 years.