The Zero-Interest Loan (Prêt à Taux Zéro – PTZ) is a public scheme that helps finance part of the purchase of a primary residence without interest or application fees. This loan is reserved for first-time buyers, meaning households that have not owned their primary residence in the past two years. Its objective is to promote homeownership, especially for low- or middle-income households who face challenges in financing their real estate project in a context of high interest rates and tightened credit conditions.
A Major Reform Starting April 1, 2025
As part of the 2025 Finance Act, the Zero-Interest Loan (PTZ) is being expanded. From April 1, 2025 to December 31, 2027, its access conditions and application rules will be relaxed. The aim is to allow more households to become homeowners, particularly in rural and peri-urban areas. This temporary scheme also seeks to encourage the construction of new housing and to support the construction sector.
What’s New for the PTZ from April 2025?
New Homes: A Scheme Open to More Territories and Projects
Until now, the PTZ for new housing was only available for the purchase of apartments located in high-demand areas (zones A, A bis, B1) and in collective buildings. This notably excluded the purchase of new single-family homes, except under specific schemes (BRS, PSLA, etc.).
From now on, the PTZ applies to the purchase of a new home:
- Whether it is an apartment or a single-family house;
- And this, anywhere in France, with no geographical restrictions.
This is a major change that opens the PTZ to rural areas, medium-sized towns, and peri-urban zones places where buying a house is often the preferred solution for households. This measure could thus revitalize local markets that were previously neglected and enable more families to bring their life projects to life in housing that meets their needs.
General Eligibility Conditions
To qualify for the PTZ, several conditions must be met:
- Not having owned one’s primary residence in the past two years (except for specific exemptions);
Meeting a resource ceiling, which depends on:
- The geographical area of the home;
- The number of people who will occupy the home;
- The financed home must become the primary residence, occupied at least 8 months a year for 6 years.
These criteria aim to ensure a fair use of the scheme, while focusing the State’s efforts on households for whom the aid will truly be a financial lever.
Eligibility is based on the reference taxable income (RFR) from year N-2 (e.g.: RFR 2023 for a PTZ signed in 2025), compared to a threshold equivalent to total project cost ÷ 9.
How Much Can Be Borrowed with a PTZ in 2025?
The amount you can borrow through the Zero-Interest Loan (PTZ) is not fixed: it depends on several criteria related to your personal situation and the property you wish to buy. The aim is to provide tailored assistance, based on the needs of each household and the realities of the local property market.
Parameters to Consider
Several elements influence the calculation of the PTZ amount:
- The number of future occupants: the larger the household, the higher the potential PTZ amount, as resource limits and housing needs increase.
- Household income: depending on your income level, you are assigned to a bracket from 1 to 4. This bracket determines the portion of the project that can be financed through the PTZ.
- Property location: whether the home is located in a high-demand area (A, A bis, B1) or a low-demand area (B2, C), the amounts and financing percentages differ.
- Type of property: apartment or house, collective or individual housing, new property or old with renovation work. The PTZ is now more broadly adapted to the nature of the project.
This customization is intended to ensure fair access to the scheme, while taking into account disparities in the property market across the country.
Fundable Proportion
The proportion corresponds to the percentage of the total project cost that can be covered by the PTZ. It varies depending on the type of property and the household's income:
Type of Housing | Proportion (Based on Income) |
New individual housing | 10% to 30% of the total cost |
New collective housing | 20% to 50% of the total cost |
Concrete Examples:
- A couple with one child and modest income wishes to buy a new house in zone B2 (low-demand area). If the total project cost is €220,000 and they qualify for a 30% proportion, they can borrow up to €66,000 at zero interest.
- A single person with intermediate income wants to buy a new apartment in a city in zone A. For a project costing €180,000, they may obtain a PTZ covering up to 45% of the cost, i.e. €81,000, if they fall into the appropriate income bracket.
Note: The PTZ amount cannot exceed a certain ceiling, determined by the household composition and the housing’s location. This ceiling is set by decree and regularly updated.
A Complementary Aid
The PTZ never finances the entire real estate purchase. It complements a main loan (standard or subsidized) and potentially a personal contribution. The main advantage of the PTZ lies in the fact that it is interest-free, comes with no application fees, and may offer deferred repayment—helping to ease monthly payments in the early years.
PTZ 2025 for Older Homes: What Are the Options?
The Zero-Interest Loan is not limited to the purchase of new housing: it can also be granted to finance the acquisition of an older property, under certain strict conditions. This part of the scheme aims to encourage the renovation of the existing housing stock, which is often older and less energy-efficient, while also supporting homeownership in areas where new construction is less developed.
To benefit from the PTZ for an older property, the purchased home must:
- Have been completed more than five years ago
- Undergo renovation work representing at least 25% of the total cost of the operation (purchase + renovation).
These works must significantly improvethe energy performance of the home or bring it up to current habitability standards. The goal is to support the rehabilitation of run-down properties while aligning with the broader ecological transition agenda.
There are two other situations in which the PTZ can be used for older properties. First, when a tenant of social housing wishes to become the owner of their home, they may qualify for the zero-interest loan subject to income conditions. This measure supports social homeownership by easing the residential path for low-income households.
Second, the PTZ can be granted in the context of converting a non-residential space into a dwelling: this includes, for example, the transformation of a barn, a former shop, or an office into a residential unit.
By encouraging these various scenarios, the PTZ for older properties provides a concrete response to the challenges of rehabilitation, territorial revitalization, and the reduction of land artificialization, while supporting households in their journey toward homeownership.
Repayment Terms
The PTZ carries no interest and may benefit from deferred repayment depending on income. The total duration ranges from 10 to 25 years, divided into two periods. This deferral mechanism is especially useful for young households or first-time buyers who need time to stabilize their financial situation before beginning to repay the borrowed capital.
Tranche | Durée totale | Différé | Remboursement
--------|---------------|---------|----------------
1 (modestes) | 25 ans | 10 ans | 15 ans
2 | 20 ans | 8 ans | 12 ans
3 | 15 ans | 2 ans | 13 ans
4 (élevées) | 10 ans | Aucun | 10 ans
In Conclusion
The new 2025 PTZ represents a unique opportunity for households wishing to access homeownership in a context of high interest rates. It especially facilitates the purchase of new single-family homes and significantly broadens access to the loan across the country. It is part of a broader policy supporting homeownership and offers a concrete response to housing challenges in France.Our advisors are here to guide you through your acquisition project!
A simulator is available at https://www.anil.org/outils/outils-de-calcul/votre-pret-a-taux-zero/ to estimate your eligibility and the potential amount of your PTZ.
Author:
Virginie Cottet-Moine – Head of New Builds and Life Annuity Division
As a specialist in new-build property and life annuities, I offer clear and practical information to help you better understand these specific sectors. My goal is to guide you in your decisions by providing reliable advice tailored to your project.
