Loan Savings Housing and Right to the Loan

We detail in this file the phase related to home savings loan. For more information on how PEL and CEL work, you can read our complete file.

Fundable operations

Fundable operations

To know which operations you can finance with a mortgage loan , We must distinguish the contracts opened before February 28, 2011 and those underwritten as of March 1, 2011, date of the reform led by Christine Lagarde.

Contracts open before February 28, 2011

If you use your rights on open contracts before February 28, 2011, you can finance the following real estate transactions:

  • Acquisition of a principal residence in the new or in the old one as well as its parking space (parking or garage).
  • Purchase of a new secondary residence (off-plan apartment or construction of a detached house).
  • Works on existing constructions.
  • Purchase of a building plot provided that the borrower plans at the same time the construction of the house.

Contracts open after March 1, 2011

Since March 1, 2011 and the reform of Housing Savings, it is no longer possible to use the rights to buy a second home or to invest in a tourist residence. For this type of operation, it will therefore be necessary to go through a classic home loan.

However, it is possible to finance specific operations such as the purchase of REIT units provided that they consist of buildings intended for housing.

Housing savings loan amount

Housing savings loan amount

The amount depends mainly on the accumulated interest earned (excluding the state premium), but can not be less than € 150 and the chosen repayment period (between 2 and 15 years).

For your application to be admissible, you must have collected a minimum of interest that varies depending on the purpose of the financing:

Object Minimum interest to acquire
Acquisition of old or new housing 75 €
Work on an existing dwelling € 37
Energy saving works $ 22.50

Reminder : the request must be made no later than six months after the acquisition of the property.

Maximum amount on an ELP

Maximum amount of rights to loan The amount of the loan is limited to € 92,000. For example, to be able to borrow the maximum amount over the longest term (15 years), you will need to have:

  • € 7285 on a contract opened after August 1, 2003.
  • € 9655 on a contract opened before August 1, 2003.

Maximum amount on a CEL

The request is possible 18 months after the opening. The right to loan a home savings account is limited to € 23,000.

Good to know : if the request comes on a plan or if it comes from the accumulation of an account and a plan, (in the latter case, the two files must be assembled by the same bank), the maximum of the two operations cumulative amount is set at € 92,000.

Interest rate

Interest rate

The rate of a home equity loan is known on subscription and depends on the date of opening.

For acquired rights on a plan

Opening dates of the plan Loan rate
Open after 1/08/2003 4.20%
Opened between 1/07/2000 and 31/07/2003 4.97%
Opened between the 26/07/1999 and the 30/06/2000 4.31%
Opened between 9/06/1998 and 25/07/1999 4.60%
Opened between the 23/01/1997 and the 9/06/1998 4.80%
Opened between 7/02/1994 and 22/01/1997 5.54%
Opened between the 16/05/1986 and the 7/02/1994 6.32%

Good to know : the state bonus is paid only in case of loan application and can go up to 1144 €

For rights acquired on an account

The CEL rate works on the basis of the following calculation:

Deposit interest rate + 1.5% (corresponding to the lender’s financial expenses)

Opening date of the account Loan rate
Interest acquired as of August 1, 2011 3%
Interest earned on 1/08/2010 and 31/07/2011 2.75%
Interest earned on 1/08/2008 and 31/07/2010 2.25%
Interest earned on 1/05/2009 and 31/07/2009 2.75%
Interest earned on 1/02/2009 and 30/04/2009 3.25%
Interest acquired as from 1/08/2008 4.25%
Interest earned as of 1/02/2008 3.75%
Interest acquired as from 1/07/2007 3.75%
Interest acquired as from 1/08/2007 3.50%
Interest acquired as from 1/08/2006 3.25%
Interest acquired as from 1/02/2006 3.00%
Interest acquired as from 1/08/2005 2.75%
Interest acquired as from 1/08/2003 3.00%
Interest earned between 1/07/2000 and 31/07/2003 3.50%
Interest earned between 1/08/1999 and 30/06/2000 3.00%
Interest earned between 16/06/1998 and 31/07/1999 3.50%
Interest earned between 16/02/1994 and 15/06/1998 3.75%
Interest earned between 16/05/1986 and 15/02/1994 4.25%

Calculation of the rate for a single loan in case of cumulation of several transactions

Since the reform, it is possible to apply a weighted average rate and to take out a single loan in the event of multiple entitlements on several LECs or ELPs (see below the case of the transfer of rights) or cumulation of one plan and an account. This measure applies to all applications for contracts opened on or after March 1, 2011.

This provision is completely transparent and does not change anything in terms of cost or monthly payment for the borrower.

Transfer of rights

Transfer of rights

Plans over 3 years and accounts of more than 1 year may be the subject of a transfer of rights between members of the same family provided that the assignees themselves have operations giving right to loan .

  • Ascendants and descendants in direct line.
  • Brothers and sisters.
  • Uncles and aunts.
  • Nephews and nieces.

Important : the transmission between “pacsés” or cohabitants is not allowed.It happens moreover that in anticipation of a future real estate project, several members of the same family (the parents for example) subscribe simultaneously an operation for children so that they benefit from a larger loan.

Namely : it is the assignee of the rights who benefits from the state premium and not the transferor.

Case of succession and donation

Contracts can be transferred provided that certain rules are respected:

  • Donation case : Unlike the assignment, the capital and interest are also transferred to the donee.
  • Case of death : the transmission is possible during a sharing operation provided that the operation goes to a single beneficiary.

Transformation of an ELP into CEL

Transformation of an ELP into CEL

The transformation of a plan into account is possible either on an existing contract or failing on a new operation opened for the occasion. The capital and vested interests are then transferred within the ceiling of the CEL (€ 15,300) and the loan rights are those of the new account.

Common rules for plans and accounts

Loans from home savings are considered components of the contribution.

Moreover, unlike the PTZ, it allows to finance the notary fees. In addition, the conditions must be specified in the prior offer. As such, the bank may require insurance for death, disability and disability . On the other hand, the fees are free.

Finally, since their duration is generally shorter than that of the main loan, consider smoothing them in order to benefit from a lower overall monthly payment.