Housing savings credit: real estate
This is an offer put in place to encourage individuals to save more while benefiting from the advantages offered by subsidized loans.
Indeed, after a phase of remunerated savings, you will benefit from a mortgage at an advantageous rate. This loan can finance the purchase of your home without any conditions related to its operation. However, if it is a secondary residence, you must not have a Housing Savings loan in progress on your main residence.
This credit combines two essential periods:
- A savings period : During this period you will make payments into your CEL or PEL. In the case of an ELP, the minimum duration is 4 years and it can be reduced to 18 months for a CEL. It is necessary to respect these deadlines, if you want to benefit from this credit.
- A credit period : Once the savings period has elapsed, you can take out a subsidized credit, the conditions of which are fixed in advance. The amount to borrow depends on your savings.
Features of a home savings plan
The housing savings plan (PEL) allows you to carry out your real estate project by benefiting from a loan at preferential interest rates. But you can’t take advantage of it without booking savings in advance. In general, its duration is at least 4 years, and regular payments can be made, either by month, quarter or semester. Other exceptional payments are also permitted, but without exceeding a certain limit previously determined. The remuneration offered by an ELP remains attractive since it allows the capitalization of interest. The rate must be set when the plan is opened and is currently 2.5%. Besides the interest rate related remuneration, you can also benefit from a State premium granted under certain conditions.
Characteristics of a housing savings account?
CEL also remains a preferred investment for individuals. It is characterized by greater flexibility in withdrawals and payments. You can therefore operate on your account without restrictions. A CEL is also distinguished by its short duration which is at least 18 months. If you open a CEL, you will receive 1.50% remuneration, to which will be added a State premium capped at $ 1,144.
The opening of a CEL requires only a payment from 300 $, as for a PEL the payments are periodic and can be monthly, quarterly or half-yearly. They are of an annual minimum of 75 $.
Housing Savings Credit is therefore a financial product widely promoted by banking establishments. It is generally granted at advantageous rates and is often exempt from certain costs. The amount depends on the value of your savings, which is why it would be wise to think of saving more in order to obtain a substantial loan. The two savings possibilities offered, CEL and PEL, offer attractive conditions for carrying out your real estate project.