The process to obtain a mortgage in the old is not very different from that which finances the purchase of a new property, but this type of loan can have its own characteristics. Update with our experts.
Aid for accession
Most of the criteria for granting aid for home ownership are centered on the financing of the main residence and on first-time buyers .
The aid distributed by the State concerns both the purchase of old housing with work and a new apartment for sale, which is not the case for that distributed by local authorities, whose devices are often intended offer new programs at reduced prices in upgraded neighborhoods.
Important: the duration of subsidized loans is generally shorter than that of the main mortgage, it is advisable to carry out smoothing in order to avoid repayment stages. You will get a unique monthly payment.
Zero rate loan
You can benefit from the PTZ PLUS to finance the purchase of an old property if the property meets one of the following two conditions:
- You carry out work whose amount reaches at least 25% of the total cost of the operation, ie 1/3 of the purchase price. Eligible work is limited to enlargement (increase of living space), development and energy saving, provided that you do not benefit from an eco loan at zero rate.
- You transform a room into habitable housing by carrying out work such that it assimilates it to new housing for tax purposes.
Good to know: development or embellishment works are not eligible for the PTZ.
It can finance either new or old housing without condition of work and can also be used to finance energy saving work on a main residence.
Important: the loan for social accession allows borrowers not exceeding a certain income ceiling defined by CAF to benefit from an APL.
Again, the type of good doesn’t matter. Loans from operations subscribed after March 1, 2011 must relate to the main residence: acquisition or completion of certain improvement, enlargement or energy saving works.
It should be noted that the low level of mortgage rates makes it less attractive to use the rights to PEL or CEL, unless you finance work on your main residence.
Please note: transactions subscribed before March 1, 2011 finance the purchase of a second home.
Housing Action Loan
The former employer loan allows employees of companies with more than 10 people to benefit from a particularly competitive rate. However, it does not constitute an absolute right insofar as it depends both on the choice of the business manager, who can decide to allocate all or part of the funds to social rental housing and the envelope available at the time of request.
Aid from local authorities
They can be combined with that of the State. Note that assisted or controlled access to assistance, carried out in partnership with promoters and certain banks, is most often reserved for low-income households and intended for the acquisition of new housing located in ZACs (development zones concerted).
However, many cities and agglomerations of municipalities provide aid for the purchase of old housing in the form of a subsidy or zero-rate loan . Get in touch with the services of your town hall to find out their policy on assistance with accession.
Important: subsidized loans from the State and local authorities are taken into account in the calculation of the personal contribution . They are also subject to compulsory insurance in the same way as the main mortgage.
Notary fees are significantly higher in old real estate than in new. You will need to count around 7.3% of the purchase price against less than 3% in new.
For example, for the purchase of an old apartment in the amount of $ 200,000, you will pay almost $ 15,000, while for the same investment in new, it would cost you “only” $ 6,000.
Some banks require the borrower to finance notary and guarantee costs. You will therefore need to have more personal capital if you buy in the old one.
Important: unlike other regulated loans, the state zero-interest loan cannot finance notary fees.
If the home loan is also used to finance work, know that the release takes place as and when they are carried out. During this period, you will not amortize the capital and will have to pay the interim interest.
They therefore constitute a financial overload that should be appreciated from the start, which is not always done by the bank advisor or the mortgage broker. It must be admitted that the timetable for carrying out the work is not always known when the borrower makes the loan request. In addition, the deadlines are not always respected by the craftsmen.
However, these obstacles should not prevent you from having an estimate of the amount of interim interest on a forecast basis and integrating it into the financing plan .
Here, by way of example, is the additional cost represented by interim interest on the basis of $ 50,000 of work. The loan is granted at a rate of 1.40% (excluding insurance). To simplify the calculation, the invoices are paid each time on the 5th. The first amortization of the capital will therefore start on October 5, 2017, the date on which the entire loan will be released.
|Dated||Disbursement||Accumulated debt||Prorated duration||Amount of interim interest|
|January 5, 2017||$ 15,000||$ 15,000||9 months||$ 157.50|
|March 5, 2017||$ 8,000||$ 23,000||7 months||$ 187.83|
|May 5, 2017||$ 10,000||$ 33,000||5 months||$ 192.50|
|July 5, 2017||$ 6,000||$ 39,000||3 months||$ 136.50|
|September 5, 2017||$ 11,000||$ 50,000||1 month||$ 58.33|
Important: if you do not have sufficient personal contribution or income to pay the interim interest, be aware that some banks agree to defer their payment or to integrate their amount into the main mortgage.
The ANAH grant
You can benefit from a subsidy from the national housing agency, provided that your accommodation is more than 15 years old and that you do not exceed a certain income ceiling. The work must relate to the medium or the large work, the improvement of the networks or the security and be carried out by a professional.
Note that work promoting the autonomy of people (seniors or disabled) is also eligible for assistance from the ANAH.
Refurbishment of an old premises
If you plan to buy a local in order to transform it into housing, be aware that depending on the importance of the work, the property will be considered taxable as a new property.
A list established by the CGI determines for the shell (foundations, rigidity of the building, roof, facades, etc.) and for the medium structure (floor, partitions, sanitary, electricity, heating, etc.) the eligible works .
If the income conditions are met and if the future accommodation is intended for the main residence, you can benefit from the PTZ.
Please note: you benefit from a reduced VAT of 10%.
Purchase of social housing
You can buy your low-cost housing, provided that the building has been built for more than 10 years and that it meets the standards of competence set by the State. The request is made directly to the social landlord who has 2 months to provide you with their response.
The selling prices are decided directly by the lessor, after evaluation by the domain service. They are significantly lower than those on the market and generally make it possible to get a good deal.
Financing is carried out on the same basis as for any old real estate and the borrower benefits from the same rights on the assisted loans as the PTZ.