Financing of works: all about eco-loan at zero rates
Established in 2009, the eco-loan at zero rate helps finance some work to improve the energy performance of housing. This interest-free loan is granted without conditions of resources and concerns both individuals and condominiums. What are the characteristics of zero rate?
How does zero rate work?
The zero-rated eco-loan (zero rate) concerns all homeowners, whether occupiers or lessors, provided that it is a main residence or a dwelling inhabited for at least eight months by year, at least until the end of the loan. The eligible dwelling must have been built before 1 January 1990.
The maximum loan term is 10 years with a minimum of 3 years. The bank may, however, extend the eco-loan up to 15 years when the work concerns at least three of the six actions (work package) giving entitlement to this zero-rate loan. The maximum amount borrowed is € 30,000 per unit and varies depending on the option chosen from those that can be financed. This loan is subscribed with one of the many banks having signed an agreement with the State. The borrower provides a description of the proposed works, accompanied by a detailed estimate of the amount. The file also contains a standard form “estimate” composed of several pages. The professional who provides the quotation must accompany it with attestations proving his certification Recognized Guarantor of the Environment.
In 2014, an zero rate dedicated to the co-ownership was set up. It may relate to one or more condominium buildings but only one loan is granted for the same building.
Since 1 January 2015, it is up to the company carrying out the work to certify the eligibility of this work to the zero rate, and not to the bank as before.
What does the zero interest eco loan finance?
The operations financed relate to the supply and installation of materials or equipment designed to improve energy efficiency. Some additional expenses are also taken into account:
- thermal studies;
- Architect’s fees
- indissociable work induced by initial works such as the repair of the electrical installation, plumbing, plastering or painting;
- the works that are covered concern only the renovation and in no case the initial works;
- the possible costs of insurance project management.
To benefit from the eco-loan, the project must include a package of works, ie a set of operations to improve energy efficiency. :
- high performance thermal insulation of roofs,
- high performance thermal insulation of the walls facing the outside,
- high-performance thermal insulation of glazed walls and doors leading to the outside,
- installation, regulation or replacement of a heating system (possibly combined with an economical and efficient ventilation system) or efficient hot water production,
- installation of domestic hot water production using renewable energies,
- installation of a heating system using renewable energies.
The eco loan “Live Better”
The eco-loan “To Live Better ” is a device reserved for modest households receiving subsidies from the National Habitat Agency (Anah). It allows them to finance, with the help of an interest-free loan, the rest of their renovation work. The loan amount can reach 20 000 €. Initially planned for 2017, the eco loan “To Live Better” should be operational in early 2018.