Whether a borrower takes out a work loan over 15 years or for another duration in parallel, and whatever their means test, they can claim eco-PTZ. The zero-rate eco-loan is, as its name suggests, a zero-rate credit. It allows you to finance the energy renovation of your property up to a certain threshold.
The total amount to which you can claim will depend on the number of works envisaged in the accommodation, as well as on their nature. This work loan varies between $ 7,000 and $ 30,000 and the repayment period cannot exceed 15 years or 180 monthly payments.
Works loan: assistance possible in parallel
Note: eco-PTZ, for what types of work?
The zero-rate eco-loan mainly concerns insulation works and the installation of heating / hot water production systems, but it is also eligible for non-collective sanitation works. As a reminder, as soon as a dwelling is not connected to the sewer, this work is compulsory.
The energy transition tax credit
The tax credit for the energy transition allows the borrower to deduct from his income tax part of the expenses incurred for the energy renovation works of his property. If the amount of the tax credit is greater than that of the tax due, the difference is returned to him.
Depending on the nature of the work carried out in the accommodation, the rate of the tax credit amounts to 15, 30 or 50% of the total amount of the expenses incurred. However, this amount is subject to a ceiling: $ 8,000 for a single person, $ 16,000 for a couple. The tax credit can be combined with the eco-PTZ.
Work loan over 15 years: work loan insurance, really optional?
Very good question! By law, work loan insurance is optional. Only, in practice, this guarantee is almost systematically required, especially when the amount borrowed to finance the work is significant. There is however a solution allowing the borrower to reduce the total amount of his works credit, and therefore his monthly payments: the delegation of insurance, valid both for a work loan over 15 years and for an eco-PTZ.
The concept? Take out work loan insurance with an organization other than that granting the work credit. It’s a right, take advantage of it!
The insurance delegation implies that the monthly installments of the credit and the insurance contribution are the subjects of a separate reimbursement. In the context of a works credit, the insurance premium is therefore logically no longer integrated into the APR (overall effective annual rate).
Good to know: better understand the APR
The APR allows the borrower to represent the total amount of the loan. Indeed, in addition to insurance (if applicable), the APR includes all other costs relating to credit, such as the nominal rate and the administration fees. If there is only one rate to observe on a credit offer before signing to finance your renovation work, this is it!
Work loan over 15 years: what to remember
For your work loan over 15 years, count on Good Credit! More than attractive rates, fixed monthly payments for the duration of the loan, free prepayment regardless of the amount borrowed … here are some of the privileges which each potential borrower can take advantage of by taking out the loan of work with us. Eager to know how much it would cost you? Via our simulator, get an immediate answer in principle!
- Compatible with state aid.
- The eco-PTZ (maximum repayment period: 15 years) and the tax credit are cumulative.
- Works loan insurance can be taken out with another establishment than the one granting the credit of the work.