7. Subsidised French Mortgages

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 Plans

7.5. French Mortgages for Residents of Paris

7.5.1. Purpose of Loan

The prêt Paris logement 0% is an interest free loan from the Paris City Council towards the purchase of a main residence in the city.

Some other large cities in France also offer a similar interest free loan, about which you would need to make enquiries to the mairie.

7.5.2. Maximum Amount of Loan

The maximum amount of the loan is €24,200 for a single person and €39,600 for two or more persons, although for the period 1st Sept 09 to 31st Dec 2010 the limits have been increased to €36,300 and €59,400 respectively. The repayment period is 15 years.

This loan can be used in conjunction with the national interest free mortgage, outlined in section 7.2.

7.5.3. Eligible applicants

The following persons are eligible, on a means tested basis.

• Households who currently have their main home in the city, and have done so for at least a year at the time of their application, not having ownership of a property during at least the last three years;
• Disabled persons buying an adapted property. The requirement to have lived in Paris for the past year does not apply, although applicants must not previously have been a homeowner over the past three years.
• Police officers, firemen or those working in a hospital. Once again, there is no requirement to have had their main home in Paris for the past year, although applicants must not previously have been a homeowner over the past three years.

7.5.4. Income Thresholds

There are also upper income limits for eligibility, although these are quite generous.

For a one person household the income limit is €33,472, which increases to €47,225 for two persons, and upwards for larger households.

As is normally the case it is important to note that the definition of ‘income’ for the purposes of this loan is the revenue fiscal de reference on the income tax notice from the tax authority. This is your net income after deductions and allowances.

7.5.5. Application

Visit a bank, most of whom have signed a partnership agreement with the Council.