The employer loan, better known under the designation of “1% housing” or “1% employer”, renamed Action Housing loan since January 2010, is a solution to finance part of the purchase of the main residence of first-time buyers. Subscribing to the employer loan is complex and its interest has decreased in recent years.
The employer loan: a mortgage
The employer credit is absolutely not a consumer credit (car loan, personal loan, etc.) offered by his company. It is a mortgage more known historically under the designation “1% housing loan” or “1% employer credit”.
To obtain consumer credit at the best rate, it is possible to use our comparison of the best offers offered by the largest financial organizations. In addition, an evaluation of the file will be given in real time by the organization offering the best rate:
What type of property can the employer loan finance?
The first important point is to clearly identify the project for which the employer loan is intended. In fact, not all projects can be financed by the employer’s loan. The project must be in one of the following cases:
- the purchase of a new property
- the purchase of land to build a house within a maximum of 4 years
- building a house
- the purchase of an old property without work
- the redemption from the ex-spouse in the context of a divorce (redemption of soult)
- the redemption of the shares of other co-owners in the context of joint ownership
- acquisition as part of a life annuity
But to be able to obtain this Action Logement loan, there are additional obligations concerning the property:
- The property must be the main residence at least 8 months of the year. It can be that of a descendant, ascendant or spouse.
- This employer loan is reserved for first-time buyers. In other words, you must not have owned your principal residence in the past. It is possible to derogate from this rule in the context of a professional transfer.
- The property itself must comply with environmental standards. For new property, this is the RT 2012 standard. For the former, the energy performance must be between A and D.
NB: to finance its ecological renovation works in the old one, in addition to the employer loan, it is possible to request the eco-loan works at 0% rate, called eco-PTZ.
Employer loan: amounts, rates, financial conditions
The employer loan offers an annual nominal interest rate of 1%. It is not because of this rate that the employer loan is known as the 1% housing loan. This historic name of 1% housing corresponded to the 1% of the wage bill that companies paid to help the development of social housing.
Here are the financial conditions of the housing action loan:
- The maximum amount of the loan can go up to 30% of the total cost of the operation, capped at $ 25,000 depending on the project area (to find out your area, go to the official Action Logement website):
- $ 15,000 and $ 25,000 in zones A and A bis,
- $ 15,000 and $ 20,000 in zone B1,
- 7,000 and 15,000 $ in zone B2,
- 7,000 and 10,000 $ in zone C.
- Annual nominal interest rate: 1% (March 2017)
- Maximum repayment period: 20 years
Conditions to be met by the borrower
To get an employer loan, the rules don’t stop there. The borrower must also respect certain conditions:
- You must be an employee (or retired for less than 5 years) of a private non-agricultural company employing at least 10 employees.
- It is also necessary not to exceed certain conditions of resources depending on the composition of the household of the geographical area etc… (detailed conditions income Action Housing).
- Obtain the agreement of your employer because the Action Logement loan is granted within the limits of the funds available and those already committed. We therefore do not systematically obtain the amount to which we may be entitled.
To apply for an employer loan, you must apply to the dedicated department of your company, the human resources department or directly to the company manager, depending on the size of the company.
Conclusion on the employer loan
Basically, the employer loan was created to encourage the creation of social housing with the aim of helping to become an owner. But if we look objectively at the current situation, with very low rates and real estate prices at the highest, the employer credit or 1% housing seems to us rather exceeded. And that is without counting all the testimonies of the difficulties of the procedures to obtain the employer loan which could endanger certain files…