Following on from the decision to extend real estate zoning, the government, through the intervention of its Minister Bruno Le Maire, is outlining Prêt à Taux Zéro’s new contours. Since June 2023, we've known that it will be extended until 2027. Today we know more!

A little background on the Prêt à Taux Zéro (PTZ)

Since its creation in 1995, the PTZ has undergone a number of changes. Promised to disappear and saved many times over the years, the government decided in June 2023 to extend it until 2027. It enabled first-time buyers to obtain a financing package at a preferential rate of 0% to increase their borrowing capacity. The criteria for obtaining the PTZ have changed, although the zone of acquisition and household income have always been important.

The PTZ in 2024

As announced, new single-family homes in "relaxed" zones will no longer be eligible for the PTZ. Instead, it will focus on new multi-family housing in "tense" zones, and on the renovation of older homes in "relaxed" zones.

In order to limit the serious housing crisis we are facing, the executive has decided to broaden other criteria:

• Eligibility of the middle classes (with incomes of €2,500 to €4,500/month),
• Increasing the PTZ's share of the loan from 40% to 50%,
• Maximum amounts increased from €80,000 to €100,000,
• 210 new towns eligible for the scheme.

What is the expected impact on the real estate market?

The primary objective is to enable people to buy their own home. This is the first essential link, since first-time buyers are tenants who vacate a home that will be rented to another household. As this transfer has slowed sharply since the rise in mortgage rates, tension on the rental market is higher than ever! Thanks to this reduced-rate package, households' borrowing capacity has increased significantly. Their new eligibility for the PTZ will enable the middle classes to return to purchasing capacities in line with their expectations and aspirations. With 6 million more people eligible, the expected impact is very significant.

Buying a primary residence is an aspiration for many French people. This new version of the Prêt à Taux Zéro (zero-rate loan) should enable many of them, with the support of banking institutions, to become homeowners. Wealth A7's financing specialists and its partner France Crédit can advise you on the feasibility of your project, and provide you with the support you need - contact us!

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