Home Savings Loan from Home Savings Account (CEL)
Verified 01 January 2023 - Directorate for Legal and Administrative Information (Prime Minister)
Having a home savings account (HSA) can be used to obtain a home savings loan. This loan is to be used to finance the purchase or construction of a dwelling, or to finance work in a dwelling. The characteristics of the loan (interest rate, payment or no payment of a premium) depend on the date of opening of the CEL.
FYI
It is also possible to obtain a home savings loan from a home savings plan (PEL).
The home savings loan may take the form of a real estate loan or a work loan, which is a consumer credit.
The transactions that you can finance with the home savings loan vary depending on the opening date of the CEL.
CEL open from 1 March 2011
Loan saves housing can be used to do any of the following:
- Purchase of the main residence (new or old)
- Construction of the main residence (land purchase and construction work)
- Expansion, repair or improvement of the main residence (elevation, energy saving, facade renovation of a condominium building...)
- Acquisition of shares in residential civil real estate investment businesses (CREPS)
- Financing of premises for commercial or professional use which also includes the principal residence
FYI
the real estate concerned must be located in metropolitan France, in the overseas departments (Guadeloupe, Martinique, French Guiana, Reunion), in Saint-Pierre-et-Miquelon, in New Caledonia, in French Polynesia or in Mayotte.
CEL opened before 1 March 2011
The home savings loan can be used to do one of the following:
- Purchase of the main residence (new or old)
- Construction of the main residence (land purchase and construction work)
- Expansion, repair or improvement of the main residence (elevation, energy saving, facade renovation of a condominium building...)
- Acquisition or subscription of shares of SCPI (civil residential real estate investment Businesses)
- Construction or acquisition of a secondary residence (in the new)
- Renovation or extension of a secondary residence
- Acquisition of a residence for leisure or tourism
FYI
the real estate concerned must be located in metropolitan France, in the overseas departments (Guadeloupe, Martinique, French Guiana, Reunion), in Saint-Pierre-et-Miquelon, in New Caledonia, in French Polynesia or in Mayotte.
Have a CEL
To get a home savings loan, your home savings account (CEL) shall:
- have been open for at least 18 months
- and must have earned a minimum amount of interest, the amount of which depends on your project to be financed.
Project to be funded | Minimum amount of interest |
|---|---|
Energy-saving work | €22.50 |
Repair or improvement work | €37 |
Construction or purchase of housing | €75 |
You can give in your loan entitlements to a member of your family, but provided that he or she has a CEL that has been open for at least 18 months.
Likewise, a family member can also to assign his rights to a loan, and you can combine them with yours to get a larger amount of borrowing.
The 18-month period can be reduced to 12 months when you use rights that have been given to you by the holder of a CEL that has been open for at least 18 months.
The same applies if you use rights from your ELP or rights from your co-borrowing spouse's ELP.
At a bank
In principle, you have to apply for the loan at the bank where you have your CEL.
However, you can choose to ask another bank.
The procedure for granting the loan varies according to the nature of the loan requested.
Mortgage
Before making an offer for a home equity loan, the bank must meet the following obligations:
- Inform you about the consequences of taking out a loan, including risks of debt distress
- See the Personal Credit Reimbursement Incident File (PPIF)
- Assess your creditworthiness. To do this, it takes into account your financial situation (income, savings, expenses, debts). She should check that your debt ratio (the share of all your monthly credit and credit insurance payments in your monthly income) is not higher than 35%
- Verify that the the annual percentage rate of charge of the loan shall not exceed the rate of wear and tear
FYI
Mortgage wear and tear is lower than consumer credit.
To ensure that it will be repaid, the bank may ask you for guarantees (bank guarantee or conventional mortgage or legal mortgage
The type of collateral claimed varies from bank to bank.
The bank may also require you to take a borrower insurance to protect yourself in the event that you are unable to meet your commitments, for example in case of illness or job loss.
However, the bank cannot require you to reside your income in its establishment.
If the bank accepts your loan request, it must send you a loan offer free of charge, to you and to your eventual surety. This offer must be accompanied by the European Standardized Information Sheet (ESIS).
Job Loan
Before granting you the loan for work, which is a consumer credit, the bank is required to do the following:
- Inform you about the consequences of taking out a loan, including risks of debt distress
- Check your creditworthiness (review of your income and expenses, consultation of the Banque de France's files)
- Inform you of the terms of the credit (delivery of a pre-contractual information sheet)
- Verify that the the annual percentage rate of charge of the loan shall not exceed the rate of wear and tear
FYI
consumer credit wear and tear is higher than mortgage debt.
To ensure that it will be repaid, the bank may require you to provide a guarantee (bank guarantee)
The bank may also require you to take a borrower insurance to protect yourself from the possibility that you will not be able to meet your commitments, for example in case of illness or job loss.
If the bank accepts your loan request, it must send you a free written loan offer to you and your eventual deposit.
The amount of the loan depends on its duration and the interest earned during the saving phase.
Its maximum amount is €23,000.
Please note
if you combine a CEL loan with a CEL loan obtained through a PEL, the maximum amount of the total loan may not exceed €92,000.
FYI
if you have a CEL and a PEL open in the same bank, you can get a loan from your CEL and a loan from your PEL. But you won't be able to get more than €92,000 in total.
The term of the loan is 2 to 15 years.
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CEL opened since 2018
The interest rate on the loan depends on how long you have been saving on your CEL.
Your CEL does not qualify for the State premium.
CEL opened before 2018
The interest rate on the loan depends on how long you have been saving on your CEL.
You can benefit from a state premium granted at the end of the savings period.
The premium is equal to 50% interest accrued from 16 June 1988 and taken into account in the calculation of the loan.
Its maximum amount is €1,144.
This premium is exempt from income tax, but it is subject to to social security contributions.
The loan obtained with a CEL can be prepaid.
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