Zero bid: improving access in the real estate crisis, according to Bruno Le Maire

French Economy Minister Bruno Lemaire has announced that the conditions for obtaining an interest-free mortgage loan will be simplified in response to the real estate crisis. He said "in the coming weeks" the scale and income ceiling for the loan will be revised. This will allow another six million French people to benefit from this program.

The interest-free mortgage loan (PTZ) allows families, mainly young families, to limit the cost of financing their main home, both in new buildings and renovations, including energy efficiency improvements in older buildings.

As the name implies, an interest-free mortgage loan does not require interest payments. It is in addition to another type of loan and may be only a portion of the total loan amount.

The income limits that must be withheld to qualify for state aid in the form of this credit depend on the commune in which the real estate to be purchased is located. Communes are classified by letters from A to C, reflecting the degree of imbalance between supply and demand.

"In addition, 154 new communes will be included in stressed zones (classification A) and will become available for intermediate housing and new PTZ by 2024," Lemaire added, noting that 4.5 million people will be affected.

The real estate market is feeling the rise in interest rates, which began a year and a half ago with central bank actions and subsequent rate hikes by banks as part of lending policy. New mortgages excluding refinancing in France fell below the 10 billion euro mark to 9.9 billion euros in August, the first time in seven years, the Bank of France said.