In the large family of types of mortgage, the approved loan is part of the subgroup of regulated loans. It makes it possible to finance all or part of a real estate purchase project for the purpose of principal residence, while opening access to the payment of the APL. In return, the interest rates charged by lending institutions are generally a little higher than normal.
What is an approved loan?
Granted by a bank or a lending institution which has concluded an agreement with the State, the loan under agreement is a real estate loan which can finance the whole of a real estate acquisition operation, excluding notary fees. And that, whether it is:
- A purchase in the new or in the old, as soon as it serves as a main residence and the owner enters it within one year after the acquisition or completion of the work;
- Financing of housing improvement works;
- Financing of energy renovation works;
- Financing of work to adapt the property to the needs of a physically disabled person.
Repayable with interest like a traditional depreciable credit, over a period of time ranging from 5 to 35 years, the loan agreed to this in particular that it gives entitlement to the APL (Personalized housing assistance). It is also accompanied by reduced notary fees.
Because of these advantages, the interest rate charged is generally higher than for conventional credit. However, ceilings are imposed: in 2017, they amounted to 3.45% for a fixed rate loan over 12 to 15 years, to 3.60% over 15 to 20 years, and to 3.7% above over 20 years.
Its only difference with the Social Accession loan is that it can be granted without means test.
What other loans can it be combined with?
Like a traditional mortgage, the approved loan can be combined with several other types of credit, in particular:
- The reinforced zero-rate loan;
- The Action Logement loan;
- The housing savings loan (or housing savings account);
- The official credit;
- Subsidies from the National Housing Agency.
A notable exception: the approved loan cannot be backed by a Social Accession loan, due to their proximity. Nor be supplemented by a conventional mortgage.