7. Subsidised FrenchMortgages

1. 7.1. What are Subsidised French Mortgages?
   7.2. Interest Free Mortgages
   7.3. French Employer Loans
   7.4. Social Loans
   7.5. Paris Loans
   7.6. Home Purchase Savings Accounts

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7.3. French Employer Mortgage Loans

There have historically been two types of employer based loans, for either property acquisition or home improvement.

Due to budget cuts that the funding body has had to make, with effect from October 2008 the prêt pass-travaux loans are no longer available.

Accordingly, until further notice the fund can only be used for property purchase.

7.3.1. Eligible Persons

The facility is funded by employer tax contributions towards a national housing fund, which provides discounted mortgages for employees.

Accordingly, it is only available to employees of a non-agricultural private company with more than ten employees.

However, the loan is not linked to a particular contract of employment and so does not need to be reimbursed if the employee leaves their employer.

Employers can decide to allocate all or part of the allocation they have available to home ownership, home improvement, or access to lettings.

The amount they each have available each year is fixed annually by the housing mutual fund to which the employer is affiliated.

7.3.2. Income Threshold

No condition of resources is required, although the loan cannot exceed 33% of income.

7.3.3. Maximum Amount of Loan

The prêt 1% logement is a complementary loan to the principal home purchase loan facility, although it can be used for the renovation of an existing home.

The employer fixes the amount employees can borrow, which must be related to level of income, and cannot exceed 20% of the purchase price of a property.

Maximum amounts vary by region, with around €11,200 in the provinces and €17,600 in the Paris region.

7.3.4. Fees

There are no transaction costs and no guarantees on the property are required.

7.3.5. Rate of Interest

Despite the headline rate of ‘1%’, the actual rate is 1.5%, or more in some cases.

7.3.6. Application

If you think you might be eligible it is worth making enquiries to your employer, or direct to UESL

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