7. Subsidised Mortgages for French Residents

1. 7.1. Introduction
   7.2. Interest Free Mortgage
   7.3. Employer Loans
   7.4. Social Loans
   7.5. Paris Loans
   7.6. Home Purchase Savings Plans

7.4. Social Loans in France

7.4.1. Purpose of Loans

The mortgage is available for purchase or construction, renovation works, extensions, adaptation works and energy conservation measures.

So, whilst it is only of interest if you are permanently resident in France, you might be able to use if it you have purchased a ruin and you get into financial difficulties with the project!

7.4.2. Eligible Persons

Whilst the loans have a great deal in common, they are distinguished by the fact that the PAS is a means tested loan for the acquisition or improvement of a main residence.

The PC, on the other hand, can also be used for the acquisition or improvement of property to be let, and there is no test of resources.

In short, if you do not qualify for a PAS, you may be eligible for a PC.

7.4.3. Income Thresholds

As stated above, access to the PAS loan (but not the PC) is subject to upper income limits.

These limits depend on region and family composition, but they are not ungenerous.

In the regions there is an upper limit of around €18,000 for a couple, and around €25,000 for a family of four.

In the Ile de France these limits are increased to around €22,000 and €32,000 respectively.

These figures are your net income as stated on your French income tax statement. If you have yet to complete one, then you will need to produce your latest income tax statement from your home country.

The reference period for assessing your income will be the current year minus two years if applying between Jan and March, and the previous year if applying between April and December.

So, if you are applying for the facility in Sept 07, it will be your net income for 2006 that will be used to determine your eligibility.

7.4.4. Maximum Amount of Loan

The PC can fund up to 100% of acquisition and/or improvement costs, whilst the PAS is limited to 90%. Not at all bad. A survey and valuation of the property by an independent expert is mandatory.

7.4.5. Rate of Interest

The rate of interest on the loan is toppish by French standards, currently at about +5% per annum on a fixed or variable basis.

However, use of this mortgage opens access to housing benefit called l’aide personnalisée au logement - APL and potential grant assistance through the national housing agency ANAH.

This means, of course, that if you are successful in making an application for a PAS, your mortgage repayments will be reduced by housing benefit payments, and you could also be eligible for grant assistance towards renovation works!

You can also use this facility in tandem with other subsidised mortgages.

7.4.6. Application

If you think you may be eligible then you should contact your bank or local office of ANIL , the French national housing information agency.