Aid increaseEndedHousing taxNational

Zero-interest loan: higher income ceilings in zones B2 and C and longer repayment deferrals

Decree No. 2014-889 of 1 August 2014, supplemented by Decree No. 2014-1103 of 30 September 2014, changes the scales of the zero-interest loan for first-time buyers: new income ceilings by zone (e.g. €36,000 in zone A, €26,000 in B1, €24,000 in B2 and €22,000 in C for a single person), loan share of 26% in zones A and B1, 21% in B2 and 18% in C, and repayment deferrals of up to 14 years for the lowest income bracket (11 and 8 years for the next two). These rules apply to loan offers issued from 1 October 2014.

Measure originators

InitiatorGVT

Sylvia Pinel

Gouvernement

Impact on public finances

Costs 810 m €/yrtotal cost of the scheme · 2014 estimate · State

Source of the estimate: Étude d'impact annexée au décret n° 2014-1103 du 30 septembre 2014 (barèmes 2014 du prêt à taux zéro) (Official figure)

A positive amount is revenue or savings for public finances; a negative amount is a cost or lost revenue.

Effective date

1 October 2014

Measure impact

First-time buyers, especially in zones B2 and C, can use the zero-interest loan more widely and repay later. According to the impact study annexed to the decree, the net cost of loans issued in 2014 was not to exceed €810m in tax credits to banks.