Article summary
- The zero-rate loan (PTZ) can finance a large share of a new-build purchase for first-time buyers.
- Reduced VAT of 5.5% applies in eligible zones, versus the usual 20%.
- A deposit of around 10% of the price is recommended by banks.
- The reduced notary fees of new-build (2-3%) lower the deposit needed.
Building your financing plan
Financing a new home usually combines several sources: main loan, aided loans and personal deposit. Well structured, the financing plan can significantly reduce the total cost, especially for a first purchase.
The main mortgage
The standard bank loan remains the backbone of financing. Its term (20 to 25 years on average) and rate determine the monthly payment. Comparing several lenders is essential.
Home-ownership grants
Several schemes lower the cost of buying new-build.
| Grant | Beneficiaries | Effect |
|---|---|---|
| PTZ | First-time buyers, conditions apply | Interest-free share of financing |
| Reduced VAT 5.5% | Eligible zones | Lower purchase price |
| Property tax exemption | New homes | Up to 2 years tax-free |
Before financing, weigh the benefits and guarantees of buying new-build and check your eligibility for the zero-rate loan. Investors will combine these grants with the tax schemes specific to new-build.
Securing an off-plan purchase
As new-build is often bought off-plan (VEFA), funds are released gradually, on a schedule of fund calls set by law and aligned with the progress of the works.
A developer in Île-de-France, Interconstruction supports buyers in structuring their project.
Frequently asked questions
How do you finance the purchase of a new home?
Financing usually relies on a standard mortgage, supplemented by aided loans such as the zero-rate loan (PTZ) for first-time buyers. Reduced VAT of 5.5% in eligible zones and property tax exemption further lower the cost. The recommended personal deposit is around 10% of the price.
Who can benefit from the zero-rate loan for new-build?
The PTZ targets first-time buyers, subject to income conditions and depending on the geographic zone. In Île-de-France, classified as a high-demand area, it can finance a significant share of a new primary residence. The amount depends on income and household size.
What deposit do you need to buy new-build?
Banks recommend a deposit of around 10% of the price, covering notary and guarantee fees. In new-build, the reduced notary fees (2-3%) lower the deposit needed compared with older homes. Some profiles can borrow with a smaller deposit.