Being first-time buyers with modest incomes, it is completely normal that your personal contribution is limited within the framework of a loan.
Likewise, if you aspire to become a homeowner two years after the sale of your previous home. Receiving subsidized loans can unlock a homeownership project.
Assisted borrowers ready to become homeowners
In its study “social access to property” of October 2015, Good Credit indicates with regard to first-time buyers that “the role of subsidized loans is particularly important for these households insofar as these financings allow them to jump the step of accession ”.
The number of loans granted has only increased since the start of the year. And the subsidized loans have something to do with it: the current policy of the banks is in favor of first-time buyers.
Subsidized loans adapted to each situation
Whatever your socio-professional condition, a subsidized loan can potentially be granted to you. Among them are:
Social accession loan (PAS) : approved by the State, it allows modest incomes to finance the purchase or construction of new housing (including land), the purchase of old housing or work to improve housing or save energy (at a minimum cost of USD 4,000). It can allow total funding, so it is not always necessary to have a personal contribution.
- the zero-rate loan (GFI): it is intended for first-time buyers, is subject to means conditions and is variable depending on the area where the operation takes place. The accommodation purchased must be new except for a few exceptions. Note that the government expanded the criteria for obtaining GFI since 1 January 2016. The funding is partial and often needs to be complemented by other real estate loans and or personal contributions.
- civil servant loans : some banks have agreements with public service mutuals. Their customers, if they are civil servants and members of one of these mutuals, can benefit from cheaper loan insurance and a guarantee provided by the mutual in question. This avoids the mortgage (more expensive). The borrowing conditions remain the same: the loan rate, the amount and the duration of repayment do not change, whether one is a civil servant or not.
- the 1% employer loan: it is offered for employees or retirees of less than 5 years in a company with more than 10 people, and more specifically for first-time buyers and professionals on the move. It can help finance the acquisition of land or old housing without work, the construction of housing or rehabilitation, development or enlargement works. As with the GFI, the 1% employer loan is not your main loan and needs to be accompanied by other funds.
Also note that the GFI (Housing Savings Plan) and the GC (Housing Savings Account) serve the same purpose as assisted loans: to promote homeownership.
They allow this by building up savings which will then be used to borrow. This allows to have a larger personal contribution at the time of signing the loan.