Buying back loans can be a good solution for cleaning up a budget while anticipating a future real estate investment. Among the questions asked by subscribers, there is one that comes up quite often: can we buy back zero-rate credit?
A first point should be clarified: we are talking about buying a PTZ (Zero Rate Loan) during a real estate refinancing operation. On the other hand, the repurchase of mortgage with a rate of interest to zero is naturally impossible. It would be too good!
Recall that a zero-rate loan allows many households to optimize their financial arrangement to become owners of their main residence. At a time when rates have gone down enough to make the prospect of a mortgage recovery attractive, the PTZ raises a particular problem. Indeed, there is no point in buying back a zero-rate loan, since the very principle of refinancing is to allow you to repay the same loans at a lower rate so that your monthly payments decrease without increasing the duration of reimbursements. However, it is obviously impossible to find a loan at a rate below 0%.
In this case, it is possible not to reimburse the PTZ which contributed to financing the old one and then to transfer it to the new one provided that the latter respects the conditions for granting the PTZ. However, the old accommodation will have to be sold because you cannot keep the PTZ if your property is rented.
PTZ is not transferable. For a very simple reason: the bank that set it up is the one that received state aid and it will never repay this aid to another. When a bank has taken out a single mortgage including both the PTZ and the main mortgage, you will have to settle these 2 financings before you can issue a new mortgage on the property concerned to guarantee the repurchase of mortgage requested. What if the PTZ is not mortgaged? In this case, the borrower does not have to worry about it. He can redeem his mortgage without taking into account his loan at zero rate.
We must also consider compliance with the debt ratio. Indeed, the monthly payment of the PTZ enters into the determination of the debt ratio. It will be possible to exclude the PTZ from the loan repurchase transaction on the main loan if the cumulative amount of monthly payments does not exceed the maximum debt standard set by the buyer. If the overrun is effective, the buyer will refuse to refinance the previous loan without consolidating the PTZ.
In all cases, there is nothing to oblige you to agree to include a PTZ in a mortgage repurchase. The buyer has no right to impose it on you. However, there is also no obligation to grant you this refinancing if you do not include the PTZ, either because it is the subject of a mortgage or because it results in your rate of interest being exceeded. debt authorized.