Reform of Housing Savings Scheme
Reform Plan Epargne Logement (PEL) was announced by Christine Lagarde, Minister of Economy, "so that households have an effective tool to build their personal contribution to a housing project."
The ELP can now obtain a mortgage at an attractive rate, fixed at the opening of the device and whatever the duration of the loan. In addition, this financial investment is not subject to tax on income and whether the funds are well used to purchase a property, a premium is paid by the State.
The conditions for obtaining the ELP will be identical. However, the minister wants a better paying investment, with a new calculation rule for all PEL open from 1 March 2011. The pay rates will not fall below 2.5% and will be revised annually based on expectations of long-term rates for banks. The minister said that "if we had applied this formula since 2003, on average, the rate of PEL was 0.4 points higher."
Christine Lagarde hope that this investment continues to play its role of protector, mortgage rates will be unchanged at 4.2%.
In times of very low borrowing rates, as now, and it is not necessarily advantageous."But at the phase of rising interest rates, consumers are protected by the ELP, which provides access to a loan whose rate is crystallized at the opening of the plan," said the minister. |
