An interest-free real estate loan financed by the State
Unlike other loans used as a real estate purchase, the Zero Rate Credit can only be distributed by banks and credit institutions duly licensed by the state. To better understand why it should be known that the State Lily Briscoe the interest generated by the PTZ in the form of tax credits granted to the banks concerned.
This state participation is deducted from the corporate tax borne by the banks.
The State is represented, Society of Guaranteed Funds Management of the Social Accession to the property. This management company’s role is to monitor, manage and control the tax credits due to banks by the State under the zero interest loan. As for the tax administration, it is the only authority to make corrections if it deems it necessary.
A person eligible can not, therefore, take out a zero rate credit at any credit institution. The bank authorized to distribute a zero interest credit is obliged to sign an agreement with SGFGAS.
It is also obliged to mention on the loan offer the amount of the tax credit granted to it. The borrower is thus informed of the cost borne by the State.
But the PTZ also benefits from a state guarantee in case the borrower receives income below a ceiling of resources. In the event of a risk, it is the SGFGAS that provides compensation in the name of the State if the amount of the claim is below a certain ceiling. If he is superior, it is the State itself that pays the compensation. This point is fixed by decree. It is clearly stated in the agreement signed between the State and the credit institutions authorized to distribute the PTZ.
A first-time buyer can therefore subscribe to a zero-rated credit only in an approved bank.
The list of organizations authorized to distribute the zero-rated credit is available on the official website of SGFGAS. This list of affiliated credit institutions is updated regularly.
Tips for Choosing a Zero Rate Credit Agency
When you want to buy a zero-rate credit, the only prerequisite for turning to one bank over another is to be sure that it has the right to distribute the PTZ. It is indeed impossible to obtain this type of credit in a bank that has not signed an agreement with the State.
At the same time, at this crucial point, certain assets can be considered as points of reference, especially if one has to have one’s income domiciled there.
In this case, it is strongly recommended to opt for a bank that:
- does not apply a maintenance fee, or that grants reduced fees;
- offers a free or cheaper payment card than that of competing banks;
- match the customer account with free services;
- allows online account management, 24/7.
If you prefer to subscribe to a zero rate credit from a conventional bank, it is better to choose an institution whose premises are convenient to access, close to the client’s home or place of work.