Housing savings loan

In France, the home equity loan can be granted when you hold a home savings account (CEL) or a home savings plan (PEL) and if you put money aside on this kind of investment.

Principle

After a period of savings during which one acquires subsidized loan rights, one can consider the use of these rights to finance the purchase, the construction of a principal residence either in a personal capacity or for the purpose of renting it. They can also be used to finance a second home for purchase or work provided that they do not have outstanding housing savings loans on the main residence. The amount can be increased by transferring rights from other family members. With a duration of 2 to 15 years, the loans can represent 100% of the project excluding expenses with a maximum of 92 000 € for the loan PEL or 23 000 € for the loan CEL.

Operation

A holder can obtain a housing savings loan through the CEL after a minimum of 18 months of opening knowing that the initial setting of this booklet is only three hundred euros without any obligation of payments. The advantage is the rate of the loan but also, to “catch up” the low interest rate that benefited your savings to affect the realization of the loan a premium equivalent to 5/11 interest earned in a cap of 1 144 €. There is no processing fee attached to this loan, the guarantee fee ( IPPD or mortgage ) are reduced and in principle there are no penalties for early repayment.

A holder can obtain a housing savings loan thanks to the ELP after a minimum of 48 months of opening knowing that the initial setting of the plan is 225 € and that there is then obligation of payments of a minimum of 540 € per year . At the end of the ELP, the holder has a right to loan for a period of one year. There is no processing fee attached to this loan, warranty fees (IPPD or mortgage) are reduced. Previously, banks rarely asked for penalties for early repayment. This is no longer the case for loans taken after November 2001.

Nature of work

The nature of the work which may give rise to a housing savings loan is specified in Article 1 of the Decree of 15 March 1976 published in the Official Journal of 17 March 1976 1 .

Related Articles

  • Housing Savings
  • Real estate loan
  • Real estate glossary

Notes and references

  1. ↑ http://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000000481904&fastPos=7&fastReqId=82461779&categorieLien=id&oldAction=rechText  [ archive ]

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