New measures for the zero-interest loan

The housing component of the plan for economic recovery announced by the President of the Republic on December 4 last Douai expected to double the amount of interest-free loan for the year 2009.

The two decrees on the new device have been published in the Official Journal 20 December 2008 and for the purchase of a new home as primary residence as of January 15, 2009.

The doubling of the interest-free loan was effected by means of a dual mechanism:
• Increase the limit of the amount available to 30% of housing prices (instead of 20% previously). This amount of up to 40% in urban zones.
• Increase the ceiling depending on the area of ​​purchase.
The repayment period is extended significantly.

An example was given by the government. It concerns a childless couple who buys a home in Reims from 135 000 euros. The new interest-free loan for this would represent a household with 40 800 euros over 19 years. Monthly payments on the other hand would be reduced to 728 euros instead of 848 euros without the device.
The measure will last until December 31, 2009, but the effects of the financial crisis may well lead the government to continue beyond that date.

Two out of three households are involved and it is considered that the measure would encourage the purchase of 100,000 new homes. This measure is a breath of fresh air for real estate in great difficulty and could cost a whopping 600 million euros to the state.

However, it will check if it will be sufficient to allow low-income households to purchase goods whose price has experienced a doubling in the last ten years and remain in all too expensive.