PTZ: definition, conditions, and how the Zero-Rate Loan works

The PTZ, or Zero-Rate Loan, is a public scheme designed to facilitate homeownership for households with modest or intermediate incomes. It finances part of the purchase or construction of a primary residence with a loan whose interest rate is set at 0%.

The borrowed capital must therefore be repaid, but the borrower pays no interest on the amount financed by the PTZ. The scheme can thus significantly reduce the overall cost of a real estate project when integrated into financing combining a conventional bank loan, personal contribution, and possibly other subsidized loans.

Since April 1, 2025, the PTZ has been considerably expanded: the acquisition or construction of a new property can now be financed throughout France, whether an apartment or a detached house. The scheme is currently planned until December 31, 2027.

What is the PTZ?

The Zero-Rate Loan is a state-subsidized mortgage loan primarily intended for people who are purchasing their primary residence for the first time.

It has three essential characteristics:

• its interest rate is 0%;
• it is granted subject to income conditions;
• it can only finance part of the total cost of the transaction.

The PTZ must therefore be supplemented by one or more other forms of financing, for example:

• a conventional mortgage loan;
• an Action Logement loan;
• a social homeownership loan;
• a personal contribution;
• certain supplementary loans offered by banks or local authorities.

Its total duration can reach 25 years, with, depending on the household’s income, a period during which no repayment of the PTZ is yet required.

Who can benefit from the PTZ?

The PTZ is primarily intended for first-time buyers, meaning people who do not own their primary residence.

The first-time buyer condition

In principle, the borrower must not have owned their primary residence during the two years preceding the loan offer.

This condition has certain exceptions, particularly when the borrower or one of the persons intended to occupy the property is disabled or when the former primary residence has become permanently uninhabitable following a disaster.

Income conditions

The PTZ is reserved for households whose income does not exceed certain thresholds.

These thresholds depend on:

• the number of people intended to occupy the property;
• the geographical area of the property.

The income taken into account corresponds in particular to the tax reference income for year N-2 of the persons who will occupy the property.

What are the PTZ income thresholds?

The currently applicable thresholds vary according to four main geographical zones: A, B1, B2, and C.

For example, for a single person, the annual income threshold is:

• €49,000 in zone A;
• €34,500 in zone B1;
• €31,500 in zone B2;
• €28,500 in zone C.

For a household of four people, these thresholds reach respectively:

• €102,900 in zone A;
• €72,450 in zone B1;
• €66,150 in zone B2;
• €59,850 in zone C.

It is therefore necessary to know both the household composition and the zone of the future property to determine eligibility for the scheme.

What properties can be financed with a PTZ?

The scope of the PTZ depends on the nature of the property.

Purchasing a new property

Since April 1, 2025, the PTZ can finance the acquisition or construction of a new property throughout France.

It now concerns both:

• new apartments;
• and new detached houses.

This extension represents a major evolution of the scheme, which was previously more geographically limited for new properties.

Purchasing a property off-plan

VEFA, or Sale in Future State of Completion, can be financed with a PTZ provided that the buyer and the transaction meet the various conditions of the scheme.

The PTZ is therefore frequently integrated into the financial structure of a first new property purchase.

Purchasing an existing property

The PTZ can also finance the acquisition of an existing property, but under more restrictive conditions.

The property must in particular be located in zone B2 or C and require work meeting the criteria provided by regulations, particularly regarding cost and energy performance.

Purchasing your social housing

A tenant can also, under certain conditions, benefit from a PTZ to purchase the social housing they occupy.

Purchasing through a solidarity real lease

The PTZ can also support certain acquisitions made under a Solidarity Real Lease (BRS).

What is the amount of the PTZ?

There is no single PTZ amount.

The amount that can be borrowed depends primarily on:

• the price of the property;
• the number of people in the household;
• the location of the property;
• the nature of the property;
• the household’s income.

The calculation is based on a transaction cost retained within a certain limit, to which a quota is then applied.

What portion of the project can be financed by the PTZ?

For certain transactions, the PTZ can represent a significant portion of the financing.

The general quotas can reach:

• 50% for the first income bracket;
• 40% for the second and third brackets;
• 20% for the fourth bracket.

Specific rules exist particularly for new detached houses.

The amount actually obtained must therefore be subject to a personalized simulation.

Example of financing with a PTZ

Consider the example of a first-time buyer wishing to purchase a new apartment off-plan.

The financing could be structured as follows:

• property price: €220,000;
• personal contribution: €20,000;
• PTZ: €60,000;
• Action Logement loan: €20,000;
• conventional mortgage loan: €120,000.

In this example, a significant portion of the project is financed interest-free thanks to the PTZ.

The economic benefit is therefore not limited to the PTZ amount: it also reduces the portion financed with a conventional bank loan bearing interest.

How is the PTZ repaid?

The repayment of the PTZ depends on the household’s income bracket.

The repayment deferral

One of the main features of the PTZ is the possibility of benefiting from a repayment deferral.

During this period, the borrower generally repays their main mortgage loan but not yet the PTZ capital.

This limits monthly payments during the first years of financing.

The repayment period

After the possible deferral, the PTZ capital is repaid progressively.

The total loan duration can be up to 25 years.

What are the advantages of the PTZ?

The PTZ can considerably improve real estate financing when a household is eligible.

No interest to pay

The first advantage is obvious: the capital borrowed under the PTZ is financed at 0%.

For several tens of thousands of euros borrowed, the interest savings can be substantial.

Reducing the overall cost of credit

Every euro obtained at 0% is one euro that potentially does not need to be borrowed at the conventional mortgage loan rate.

Facilitating homeownership

The PTZ can increase the financing capacity of certain households and enable the realization of a project that would be more difficult to access with a traditional bank loan alone.

Benefiting from deferred repayment

The deferral can reduce monthly payments during the first years.

However, this advantage must be properly integrated into the calculation of future installments.

What are the limitations of the PTZ?

The PTZ is not free financing in the sense that the capital obviously remains to be repaid.

It does not finance the entire property

Another mortgage loan is necessary.

Income conditions apply

Not all households can benefit from the scheme.

Different rules depending on properties

The conditions are not identical for:

• new properties;
• existing properties;
• a house;
• an apartment;
• certain social homeownership transactions.

The bank remains the decision-maker

Being eligible for the PTZ does not automatically mean obtaining real estate financing.

The lending institution also analyzes:

• income;
• expenses;
• debt;
• contribution;
• professional stability;
• residual income;
• overall repayment capacity.

PTZ and VEFA: a particularly common combination

The PTZ is often used to finance a first property purchase off-plan.

The structure can combine several low-cost forms of financing:

• PTZ;
• Action Logement loan;
• subsidized loan offered by a bank;
• personal contribution;
• conventional mortgage loan.

This combination can significantly reduce the average financing rate.

However, it is important to look beyond the credit cost alone.

A new property sold at a very high price compared to the local market does not necessarily become a good investment simply because part of the financing is obtained at 0%.

PTZ or personal contribution: should both be used?

The PTZ and personal contribution do not serve exactly the same purpose.

The contribution can finance:

• certain costs related to the acquisition;
• part of the property price;
• guarantee fees;
• certain work or equipment.

The PTZ supplements bank financing.

In some cases, retaining part of one’s savings rather than significantly increasing one’s contribution may be appropriate. In others, a larger contribution reduces the cost of credit.

There is therefore no universal rule.

Can the PTZ be combined with other assistance?

Yes. Depending on the borrower’s situation, the PTZ can be combined with various schemes.

It can in particular be combined with:

• a conventional mortgage loan;
• certain Action Logement loans;
• social homeownership schemes;
• certain local assistance programs.

Since April 1, 2025, the PTZ can also be combined with MaPrimeRénov’ for certain comprehensive renovation projects.

PTZ and primary residence: what obligations?

The PTZ is intended to finance the primary residence.

The property must therefore, except for exceptions provided by regulations, be actually occupied as a primary residence.

It is not designed as financing intended to directly make a rental investment.

The subsequent rental of a property financed with a PTZ is subject to various rules that should be verified before any change in the use of the property.

What points should be verified before financing a purchase with a PTZ?

Before signing a real estate project, it is important not to look only at the 0% loan amount.

The following must be analyzed:

• the property price compared to the market;
• the total financing amount;
• the main loan rate;
• the cost of borrower insurance;
• the financing duration;
• monthly payments before and after the deferral;
• the contribution remaining available after acquisition;
• condominium charges;
• property tax;
• any interim interest in the context of a VEFA.

The objective is to determine the actual cost of the transaction, not just to maximize the PTZ amount.

Get expert assistance to finance your real estate project

The PTZ can represent several tens of thousands of euros financed interest-free and significantly alter the balance of a real estate project. However, obtaining the maximum PTZ is not sufficient to make an acquisition attractive: the property price, supplementary credit, contribution, financing duration, monthly payments after the deferral, and residual income must be analyzed together.

The professionals listed in the Experts du Patrimoine directory can help you assess your borrowing capacity, compare different financing solutions, and structure a package combining PTZ, mortgage loan, personal contribution, and any supplementary loans. Before committing to purchasing your primary residence, find an advisor or financing professional suited to your project on Experts du Patrimoine.