Extension of the Zero-Interest Loan: What Changes Will This Bring to Your Real Estate Project?

Michel Barnier said he was “in favor of extending the zero-interest loan program nationwide.” What does this mean for you if you’re planning a real estate project? Here are the key points in three questions.
 

What the new Prime Minister
, Announced In his policy address, the head of government called for “swift measures to boost rental investment and homeownership, particularly for first-time homebuyers.” He said he was “in favor of extending the zero-interest loan program nationwide.”
 

Where can you take advantage of the zero-interest loan today?
The zero-interest loan (PTZ) is a program that allows first-time homebuyers to finance a large portion of their purchase at zero interest. Currently, you can apply for a PTZ for:
• The purchase or construction of a new home in a multi-unit residential building located in a high-demand area.
• The purchase of an existing home requiring renovations in a low-demand area (i.e., in zones B2 and C only).
• The purchase of a new home as part of a rent-to-own arrangement, a solidarity lease, or a home ownership contract with a reduced VAT rate (in all zones).
 

During Emmanuel Macron’s two terms in office, the PTZ has been modified several times. Under its current terms (in effect since April 2024), the program focuses exclusively on new housing in high-demand areas, as well as on multi-family housing. Thus, for the construction of new housing, the PTZ is currently limited to so-called “high-demand” areas, which encompass more than 1,800 municipalities.
 

What Changes Will the Expansion of the PTZ Bring?
By once again expanding the PTZ to cover the entire country, it will once again be possible to finance a single-family home construction project or the purchase of an apartment in a new development in medium-sized cities or even rural areas. However, Michel Barnier’s statement did not go into detail. It is therefore difficult to predict how much can be financed at zero interest in areas not classified as “high-demand.”
The “PTZ portion” represents the share of your total mortgage that you can finance at zero interest. Since April 2024, this portion has ranged from 20% to 50% (meaning 50% of the total cost of your transaction in the best-case scenario), depending on the location of your project and your income level.
 

When will this measure be implemented?
Since expanding the PTZ will entail a cost to the public budget, this measure will need to be included in the 2025 budget bill. The bill is scheduled to be presented during “the week of October 9” and will be debated in the National Assembly starting on October 21.