With rate conditions higher than the Classic Loan, the Conventional loans agreement has the advantage of being the only loan that entitles you to Personalized Housing Assistance (APL). What are the terms and applications of this regulated loan that finances the acquisition of your principal residence? In & Fi takes stock.

A loan agreement to finance what types of operations?

Granted without a means test, the Convention Loan makes it possible to finance the purchase of new or old housing, or to build a single-family house, if these properties are used as their principal residence. The Convention Loan may also be used to finance renovation or expansion work, rental-homeownership transactions, and also a rental investment if the dwelling is the tenant’s principal residence. Finally, if you have purchased land for construction for less than 3 years from the date of issuance of the loan offer, the purchase of this land can be financed by a loan agreement.

The conditions for granting the loan agreement?

If there are no conditions of resources, housing must meet certain criteria. For example, the property acquired must be a principal residence, occupied at least 8 months of the year by the owner, his spouse, his ascendants or descendants or those of his spouse. In addition, the dwelling must be occupied within one year after the end of the work or within six years if it is an apartment intended for retirement. In the context of an expansion or acquisition, with or without improvement, of existing dwellings, the living space may not be less than 9 m2 for a single person, 16 m2 for a couple and 9 m2 per additional person .

The advantages of the loan agreement:

Like the Social Accession Loan (PAS), the loan agreement has the advantage of opening access to the benefit of a Personalized Housing Assistance. It also offers other assets such as lower notary fees, discounts on administrative fees, a lower local equipment tax (for constructions). In addition, it can be supplemented by a loan official. Other loans can also be added, such as a bridging loan, a zero interest loan (PTZ +), a loan granted under a Housing Savings Plan (PEL), a loan 1% housing, a loan social character. All these loans will also be taken into account for the calculation of the APL.

A loan agreement, at what rates?

Repayable over a period of 5 to 35 years, the Agreement Loan has a maximum interest rate which is established according to the duration of the loan and whether it is a fixed or variable rate. Currently, the maximum fixed rate varies between 4.45% over a period of less than or equal to 12 years and around 4.90% for a period of more than 20 years. The maximum variable rate is 4.45% regardless of the duration of the loan. *

The level of the fixed rate includes a variable part which is defined by the banking institutions. This is why banks should be competing. Also, In & Fi Credits brokers will be privileged interlocutors to allow you to obtain the most advantageous conditions for your loan agreement.
The mortgage can be Conventional loans, just as it can be legal or legal.
The conventional mortgage is by far the most used mortgage category because of its advantageous legal regime.
Any security having its faults, we will see what are the advantages and inconvenient of the Conventional purchase loans.

Conventional mortgage: what is it?

The Conventional loans is a subcategory of mortgage and is part of the system of different guarantees, bond and mortgage, of a mortgage.
Remember that the mortgage is an ancillary right incidental property or real estate law. The mortgage is a real estate security that guarantees the proper performance of a debtor’s obligation to pay. Conventional mortgages are generally opposed to legal and forensic mortgages. It is the result of a consensual contract and freedom of contract. Thus, Article 2396 of the Civil Code provides that the conventional mortgage is that resulting from the agreements.
Although its legal regime is therefore in accordance with the will of the parties, the fact remains that the law has strictly regulated the conditions for the formation of the conventional mortgage contract, in the interests of public order, in particular the duration of a contract. Conventional mortgage.

Legal commitments in the Conventional purchase loans.

The conventional mortgage is a mortgage contract concluded between the creditor, named “stipulator”, and his debtor, called “constituent”. In the mortgage agreement, the grantor assigns one or more real estate property or rights as security for the payment of its debt, which results from a legal obligation contained in a main agreement.

This is what makes the mortgage a real accessory right.

When the settlor undertakes to assign one or more real estate rights or property to the guarantee of a claim, he must identify with precision those assets or rights that he intends to encumber with the mortgage, i.e. the cost of the Conventional loans
This is the principle of the specialty of the conventional mortgage. This means that the settlor cannot mortgage all his real estate assets, on pain of nullity of the mortgage agreement.

Advantages and disadvantages of conventional mortgages

The conventional mortgage has the major advantage of being a la carte security.
It thus offers a customized guarantee system, in relation to the current needs of the stipulating creditor. Being a special mortgage, the conventional mortgage is special as to the secured claim. That is to say, it comes to guarantee one or more specific claims, current and born. This makes it possible to secure the claim of the stipulator, who can realize the mortgage as soon as the claim is unpaid.
The disadvantage of the conventional mortgage is that, finally, its legal regime obeys the general conditions of validity of any mortgage, subject to some specificities as to the conditions of form and substance.
The conventional mortgage is in this respect a highly solemn contract. This means that the formalism is de rigueur, which does not necessarily simplify the constitution of the conventional mortgage as conventional rechargeable mortgage.

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