The Interest-Free Mortgage (Prêt à Taux Zéro or PTZ) is intended for households wishing to buy their principal residence, and whose income falls below certain maximum levels.
The PTZ has changed significantly since it was first introduced in 1995. This subsidised loan was due to be phased out at the end of 2009.
However, given the success of the scheme, the French government has decided to extend it until the end of 2012.
This loan will be particularly attractive in 2010, because the amount you can borrow has doubled. This increase, combined with the fact that it is now easier to obtain, means that the PTZ is available to a much larger number of potential buyers.
The interest-free mortgage (PTZ) in - 01 July 2010
What's new in 2010?
The amount of the loan has been doubled, the repayment period has been extended and a further increase is available for homes meeting the BBC (Low-Energy Building) standard.
How much could you borrow under the PTZ scheme?
The amount varies depending on the number of people living in the new property and its location.