The Prêt d’Accession Sociale (PAS) is a subsidised loan where the rate of interest is regulated by the French government. It may be used to fund the purchase of a home and home improvements.
Benefiting from the Prêt d’Accession Sociale
The loan is designed only to fund the purchase of your principal residence or home improvements to that principle residence, and specifically excludes investment property.
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Your purchase may be funded up to 100% (excluding legal documentation fees).
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Gradual repayment
If you are building your own home, you may make interest-only payments throughout the construction period. Only when you move in will you begin to make capital repayments in addition to the interest.
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Subsidised loan periods range from 5 to 30 years. The contracts under which these loans are granted make it possible to reduce or extend the loan period during the repayment period if the circumstances of the homeowner change unexpectedly. Where this is the case, no minimum period is imposed. However, the maximum period may not exceed 35 years.
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Lower costs
Where home construction is concerned, the PAS documentation costs are capped, and the guarantee fees are reduced. The taxe locale d’équipement (local construction tax) is reduced where the PAS is combined with an interest-free mortgage.
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This loan is compatible with other low-cost loans, including the interest-free mortgage and 1% home loan.
- Who is eligible for the APL,(Aide Personnalisée au Logement) personal housing grant? This monthly allowance could help you repay your loan. It is paid by the Caisse d’Allocations Familiales (CAF) subject to income-related conditions.
The APL: view an online illustration of your entitlements
The CAF calculates the amount of support on the basis of a range of criteria that includes: income, family circumstances, place of residence, type of accommodation and the amount of loan repayments.
If you are eligible for the APL, the benefit will be paid monthly to your lender and deducted from your loan repayments. The amount paid is reviewed annually or whenever your circumstances change.
How much can you borrow?
The minimum guaranteed amount for the purchase of a new property is €4,500.
There is no maximum amount. The loan may be used to fund the total amount of the purchase.
What will the interest rate be?
You can choose between fixed and variable rates. The following rates apply from 1 August 2009:
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For a fixed rate PAS, the maximum interest rate is:
- 5.55% for loans of 12 years or less,
- 5.75% for loans of between 12 and 15 years,
- 5.90% for loans of between 15 and 20 years,
- 6 % for loans of over 20 years
- Variable or reviewed rate PAS are subject to a maximum interest rate of 5.55%, regardless of the loan period.
Who should you contact to apply?
You should apply to your bank.
For more information and a personal analysis of your case, please call a Bouygues Immobilier advisor on 00 33 (0)1 55 18 70 00.
