The zero-rate loan is a home loan for first-time buyers. It allows them to acquire housing without having to suffer too high interest rates that could deter the purchase.
Conditions of obtaining
The zero interest loan is subject to certain conditions. It must concern a first acquisition of housing by the borrower. This unit must be new. It can be old only in some cases. The borrower must not own a home or have owned one in the two years preceding the application.
Certain categories of people can nevertheless benefit from it under presentation of justifying documents for example of invalidity or handicapped adult. The zero-rate loan is also granted after studying the income of the borrower (s), the number of people who will occupy this future dwelling as well as certain information concerning housing.
Indeed, the zero-rate loan is granted to people who do not exceed a certain income ceiling calculated according to the composition of the family.
The zero rate loan can have multiple objects. It may concern the construction of one’s own home, the purchase of a new dwelling or the purchase of old housing that the social landlord concerned concedes to its occupants. In all cases, the zero-rate loan must allow for a quick installation in the new home, which must be done at the maximum in the following year.
The amount of the zero-rated loan granted is calculated taking into account many factors, including the actual total cost of the project, the location of the dwelling and its energy consumption. Depending on these factors, an amount is allocated from $ 79,000 for a single person to $ 359,000 for five or more occupants depending on the situation.
The duration of the repayment of the loan is predefined between the two parties taking into account the income of the borrower. The monthly installments will then be staggered according to his capacities knowing that this duration must be included in a range going from 8 to 25 years.
This term is understood as a period of 8 to 23 years devoted to the repayment of debt and a deferred payment period of two years granted by certain banking institutions without this being mandatory. This is conceivable depending on the project of the borrower but also its income and the number of people destined to occupy the future housing.