Paris Housing Loan (PPL): A home ownership assistance system for Parisians

Table of contents

The Paris Housing Loan (PPL) is a financial assistance system designed to promote home ownership for Parisian households. Set up by the City of Paris in partnership with banking institutions, the PPL offers advantageous conditions for financing the purchase of housing in the capital. In this article, we will take a detailed look at the characteristics of the PPL, its eligibility conditions, its advantages and its implementation modalities, in order to help you determine if this loan is suitable for your situation and your real estate project.

1- Presentation of the Paris Housing Loan (PPL)

The Paris Housing Loan (PPL) is an additional real estate loan, granted without interest and without administrative fees, intended to finance the purchase of new or old housing. It is aimed at Parisian households who want to own property and who meet certain resource criteria.

The PPL is granted subject to the granting of a main real estate loan, and complements other accession assistance schemes, such as the Zero Rate Loan (PTZ) or the Social Accession Loan (PAS).

2- Eligibility conditions for the Paris Housing Loan

To benefit from the Paris Housing Loan, borrowers must meet the following conditions:

• Be of legal age and have been resident for tax purposes in Paris for at least one year.
• Buy a new or old home for use as a main residence located in Paris.
• Do not own their main residence at the time of purchase.
• Have incomes below the resource ceilings set by the City of Paris. These ceilings vary according to the composition of the household and the geographical area of the home.
• Obtain a main real estate loan for a term of at least 15 years from a banking institution that is a partner of the City of Paris.

3- The characteristics of the Paris Housing Loan

Amount

The PPL amount varies according to household income, family composition and the type of housing (new or old). It can reach up to €39,600 for a household with the most modest incomes.

Duration

The duration of the PPL is between 5 and 15 years, depending on the borrower's repayment capacity.

Interest rate

It is granted without interest, which reduces the total cost of borrowing.

Application fees

There is no application fee for the PPL.

Deferred repayment

The repayment of the PPL can be deferred up to 3 years after the release of the funds, thus allowing borrowers to have a grace period to build up savings or to amortize expenses related to the purchase of housing.

Early repayment

It can be repaid in advance, without penalties or fees, thus offering financial flexibility to borrowers.

4- The advantages of the Paris Housing Loan

Facilitating home ownership

The Paris Housing Loan allows Parisian households with modest and intermediate incomes to access home more easily by reducing the cost of borrowing and reducing monthly payments.

Benefit from an advantageous interest rate

It is granted without interest, which represents a considerable financial advantage compared to traditional real estate loans.

Complement other accession assistance schemes

The PPL can be combined with other subsidized loans, such as the Zero Rate Loan (PTZ) or the Social Accession Loan (PAS), thus allowing borrowers to benefit from more advantageous global financing.

No administrative fees

The absence of application fees for the PPL makes it possible to reduce the ancillary costs associated with borrowing.

Flexibility in repayment

The deferred repayment and the possibility of early repayment without penalties offer borrowers a certain flexibility to manage their budget and adapt their financing plan according to their personal and professional situation.

5- The steps to obtain a Paris Housing Loan

Check your eligibility

Before applying for a PPL, it is important to check if you meet the eligibility conditions set out above.

Establishing a financing file

To obtain a Paris Housing Loan, it is necessary to draw up a complete financing file, including proof of income, address, identity, as well as the sales agreement or the housing reservation contract.

Apply for a main home loan

Since the PPL is an additional loan, it is essential to apply for a main real estate loan from a banking institution that is a partner of the City of Paris. The terms of this principal loan must comply with the requirements of the PPL system.

Apply for a Paris Housing Loan

Once the main mortgage is obtained, it is necessary to apply for a PPL from the bank, providing the financing file and the supporting documents of eligibility. The bank then examines the request and decides to grant the PPL according to the criteria of the scheme and the borrower's ability to repay.

6- The role of real estate professionals and brokers in obtaining the PPL

Advice and support

Calling on a real estate professional or a broker to assist you in your purchase and financing project is a key step in successfully buying a home. These experts will be able to advise you on the best financing options based on your personal, professional and financial situation, and will help you put together your PPL application.

Negotiating loan terms

A mortgage broker can also negotiate the best financing conditions for you with partner banking institutions in the City of Paris. By competing between banks, it can get lower interest rates, longer repayment terms, and lower processing fees for your main home loan, which can significantly reduce the total cost of your loan.

Follow-up of the file

Throughout the purchase and financing process, a real estate professional or broker will assist you in monitoring your file, by verifying that all supporting documents are compliant and up to date, and by ensuring that deadlines are respected. This assistance will allow you to save time, avoid mistakes and oversights, and maximize your chances of getting the PPL.

Assistance in case of difficulties

If you have difficulties in obtaining the PPL or in complying with the reimbursement conditions, a real estate agent can advise you and guide you to the most appropriate solutions for your situation. For example, it can help you renegotiate the terms of your main home loan or find other sources of financing to complement the PPL.

Conclusion

The Paris Housing Loan (PPL) is a valuable assistance system for Parisian households wishing to access property in a real estate market that is often complex and expensive. By surrounding yourself with real estate professionals and competent brokers, you can optimize your financing plan, benefit from the best loan conditions and maximize your chances of obtaining the PPL. Do not hesitate to ask for their expertise and advice to support you in your real estate project and realize your dream of becoming an owner in Paris.