New homes are once again eligible for PTZ: a return to reason!

After being excluded from the system in April 2024, house construction is once again eligible for the Zero Interest Loan (PTZ) and across the entire country from April 1, 2025. While Hexaom, the leading French house builder and renovator, considers that the absence of PTZ for house construction has been a significant obstacle for the real estate market, which has been in crisis for the past two years, it nevertheless welcomes this boost which should make potential buyers more solvent in a context of stabilizing credit rates.

Here are the reactions and the simulation of the impact of this PTZ 2025 on both the cost of credit and on debt... and even the feasibility or not of a construction project!

The return of the PTZ across the country: better late than never

Good news: as of April 1, the zero-interest loan is extended to all new operations (individual and collective) throughout the country until December 31, 2027.

For Loïc Vandromme, CEO of Hexaom: "The return of zero-interest loans for home construction is a common-sense decision that we expected and welcome. This awareness and its implementation, however, come late because the damage has already been done. Political inaction on housing has caused the worst real estate crisis since the Second World War, resulting in a collapse in construction, the destruction of thousands of jobs, and a disruption in the residential sector across the country."

Indeed, in 2024, while the majority of new home buyers at Hexaom were first-time buyers (54,7%), their share fell by more than 7 points compared to 2023.

Up to 30% of the transaction amount and 10 years deferred payment

While the main conditions of the zero-interest loan (income, transaction ceiling) remain unchanged compared to 2024, adjustments have been made to the maximum amount that can be financed depending on the type of housing. Indeed, regarding house construction, depending on income, the amount of the zero-interest loan can represent 10 to 30% of the total amount of the transaction (land + construction) with grace periods ranging from 2 to 10 years.

For Steve Beaudel, Marketing Director of Hexaom: "The PTZ offers several advantages for first-time buyers. In addition to the fact that it allows them to obtain interest-free financing, which significantly reduces the total cost of financing, it includes a repayment deferral period of up to 10 years depending on the borrower's tranche. This period allows them to begin repaying their main loan before starting to repay the PTZ, thus easing the financial burden during the first years following the purchase of the property. This mechanism is particularly beneficial for young buyers or households with rising incomes."

Simulation with the new PTZ

Couple with 2 children who have a project to buy + build a house in zone B1

Reference tax income: €45.000
Monthly net income: €4.000
Total amount of the transaction (land + construction): €283.000
Contribution: €15.000 (to finance notary fees, guarantee, file, etc.)

Given their income and family quotient, the couple is in bracket 1 and is entitled to a zero-interest loan (PTZ) = 30% of the transaction amount. That is €84.900, with a 10-year deferral (€0 monthly payment for 10 years, then €471,67/month).

Financing plan with the “PTZ 2025”:

PTZ: €84.900 at 0% over 25 years
Additional loan: €198.100 at 3,5% over 25 years
Smoothed monthly payment: €1.224,61
This represents a debt of 30,62%.
Total cost of credit: €84.384
That’s the equivalent of a 2,2% loan rate over 25 years!

Without the PTZ, the couple would have had to borrow the entire amount, i.e. €283.000 at 3,5% over 25 years.

Monthly payment: €1.417
Cost of credit: €142.030, i.e. 40% more!
Debt ratio: 35,4% excluding insurance = refusal of financing

Source: Youfinancer

For Julie Bachet, general manager of Vousfinancer: "Being able to benefit from a zero-interest loan with a deferral impacts both the cost of credit and the debt, via the reduction in the monthly payment that this allows during smoothing... In addition, many banks are once again offering this year the doubling of the PTZ up to €20.000, which further increases its resolvability effect. Thus, certain projects that would not be financeable for existing properties are financeable for new properties with a PTZ. It is a real financing lever for first-time buyers and we are delighted with its return for new homes!"

Conclusion

The reintegration of single-family homes into the PTZ scheme and its extension to all areas offer new prospects for first-time buyers, some of whom had had to put their construction projects on hold. Although the percentages have been reduced compared to its pre-2024 version, it remains an advantageous financing lever for accessing property and building assets in a context of stabilizing credit rates.

For Loïc Vandromme, CEO of Hexaom: "Support for first-time buyers comes at the right time, as credit rates are stabilizing at around 3,5%. This will help continue the process of improving household solvency, triggered by the rate cuts in 2024, and bring some of the lost customers back into home ownership. Hexaom, as the leading French builder, will support this movement both with a product offering tailored to first-time buyers, with scalable models, and with solvency tools through its banking and brokerage partners, such as loans at preferential rates."

Illustrative image of the article via Depositphotos.com.