Last Monday, the mayor of Toulouse announced the establishment of a new loan: the Toulousain Accession Loan (PAT). The town hall declared that it will be “an aid to the social accession to the property for a first housing, in the form of loan without interest, repayable over a duration of 10, 12 and 15 years”. It will count two lump sums, either 10,000 dollars for a purchase in new, or 6,000 dollars for a purchase in old. This new system will come into force in November 2017.
What are the differences with the old loan? How will it finance itself?
A renewal of the Zero Rate Loan
Regarding the old Zero Rate Loan, old dwellings were eligible when they were over 14 years old. They are now eligible if they are over 5 years old . For the purchase of new housing, the PAT will now concern priority neighborhoods. For the purchase of old housing, the PAT will cover the entire municipal territory.
To benefit from this new device, the resources of first-time buyers must be less than $ 30,000 per year for a single person, $ 42,000 for a couple, $ 51,000 for a family of 3 and $ 69,000 for a family of 5 people.
This new system will be financed by the City of Toulouse for an amount of around 1.5 million dollars . This new device has a substantial budget, but according to Franco Benini, assistant in charge of housing at the Toulouse City Hall, “for us, it is a question of simplifying the loan system, giving better readability for beneficiaries and for banking organizations and adapt to the economic context and to the drop in bank rates ”.
This new Toulouse Accession Loan (PAT) simplifies the Zero Rate Loan. Franco Benini affirmed that “the PAT for a first accommodation will remain reimbursable over a period of ten, twelve or fifteen years, depending on the repayment capacity of the beneficiaries”. Above all, it will allow Toulouse residents with modest incomes to acquire housing more easily. It will be interesting to follow the reactions concerning this future device over several months.