With falling interest rates, home loans from the home savings plan have lost their appeal. Definitely? Not sure. Certain situations can encourage the borrower to include the Good Credit loan in his financing plan and even to open a new operation and acquire the rights to finance his future projects or those of his children.
Clarification with our experts. Conditions for opening rights Maximum amount Combination of several plans Transfer of rights Interest rate Integrate a Good Credit loan into your financing plan Keep your home savings plan
A loan subject to conditions
The rights to a mortgage are open when 2 conditions are met:
- He has been detained for at least 48 months.
- He has reached a minimum of interest.
Note that the rights arising from transactions subscribed after March 1, 2011, remain open 5 years after the plan ends.
Important: in case of withdrawal of funds, the loan must be requested within a maximum of one year.
Plans opened after March 1, 2011
The LAGARDE reform of 2011 limited the use of housing savings loans to the single main residence. Loans from plans opened after this date can only be used for one of the following:
- Building land provided that construction takes place simultaneously with the acquisition of the land.
- Old or new housing.
- Parking space (box, garage or parking lot) located near the main residence.
- Some improvements, expansion, energy savings … Note that the improvement of work or home maintenance is not fundable.
- SCPI units provided that the funds are invested in residential property.
Important: the circular of July 11, 1986, authorizing the financing of works related to the principal residence of the ascendants and descendants or of the tenant of the borrower is still in force.
Plans opened before March 1, 2011
The rights can finance the purchase of a second home, a tourist home, as well as the carrying out of a certain renovation, works linked to the second home.
Please note that goods for commercial use are not eligible.
Note: the occasional rental of the second home does not affect the benefit of the loan.
Maximum loan amount
The amount of Good Credit loan rights depends both on the interest accrued excluding the state premium and on the repayment period chosen by the borrower.
But make no mistake: to benefit from an attractive amount, you must have accumulated a lot of interest and borrow for a short period.
The loan entitlement is calculated in two stages.
Determination of the amount of repayment interest
First, a multiplier is applied to the cumulative interest accrued on the plan.
- 2.5 for the acquisition of housing or the carrying out of eligible work.
- 1.5 for the purchase of SCPI units.
For example, if your plan earned you $ 1,500, the reimbursement interest will be:
[2,5 * 1,500 = $ 3,000]
Calculation of loan amount
The result then allows for a repayment period of between 2 and 15 years to determine the amount of the loan in a range of 5,000 to 92,000 $. You will understand, the shorter the duration, the higher the loan amount.
Namely: the home savings loan can finance the entire acquisition or be used in addition to the main loan.
Multiple Good Credit loans
It is possible to cumulate the rights obtained on different home savings plans within the limit of the ceiling of $ 92,000. A couple, each with one operation, can thus combine the rights of the 2 operations. It is also possible to combine the rights obtained on a Good Credit.
For loans opened on or after March 1, 2011, only one loan combining the various rights is granted. A single rate is then calculated by weighting the rate for each of the plans. The monthly payment obtained is identical to that given for two or more separate loans.
Namely: when the plans have been taken out with 2 separate banks, the Good Credit loan must be granted by the one where the amount of interest acquired is the highest.
Transfer of rights
Good Credit loan rights subscribed by ascendants, descendants, brothers or sisters, uncles or aunts, nephews or nieces can be transferred on the double condition:
- That the plans have been held for more than 3 years.
- That the borrower himself has a Good Credit entitling him to loan.
Note that the assignment is made outside of donation since only the right to the loan is transferred. Important: the rights obtained by the family of cohabiting couples or couples in a civil partnership cannot be transferred.
Should the Good Credit be integrated into its financing plan?
Several years ago, a real estate project was only considered after the opening of a housing savings plan or account.
The fall in the rate of return on savings – and therefore in the amount of the right to lend – combined with the fall in the rates of mortgage loans now limit their use.
The choice to integrate the amount of a Good Credit loan into your financing plan theoretically depends on the rate of the loan, and therefore on the date on which the plan was taken out. Except that in practice, no plan allows today to benefit from a lower rate than those currently practiced by banks.