Assistance schemes, PTZ and local schemes
PEL and CEL: Does the loan entitlement still hold any value today?
Your loan entitlement’s rate was fixed the day the plan opened. Where to read it, what to compare it with, and the decision rule in three questions.
It depends on the opening date: the rate of the loan entitlement for a PEL or a CEL was fixed on that day and remains locked. If it is lower, in terms of the annual percentage rate of charge, than what an ordinary loan offers today, the entitlement is worth mobilising; otherwise, it is better to contribute the savings to the financing. The rate, maximum amount, and expiry date of the entitlements can be read on a statement to be requested in writing from the bank.
By Sandy MASCART, mandataire d'intermédiaire en opérations de banque et en services de paiement ORIAS 26000541 sous le mandat de CDV PATRIMOINE & ASSURANCE (ORIAS 14005573)
Key points
- The rate of the loan entitlement was fixed at the opening of the plan and remains locked for its entire duration, regardless of market conditions.
- The comparison between the loan entitlement and an ordinary loan is made on the annual percentage rate of charge, never on the nominal rate displayed alone.
- Mobilising the loan entitlement adds a monthly burden; contributing the savings to the financing removes it: these are two distinct actions to choose from.
- The interest accrued by certain relatives may count towards the loan calculation, without any sum of money being transferred.
- A plan that has reached its term does not immediately become an ordinary account: the loan entitlement subsists for a limited time after the withdrawal of funds.
Your PEL or your CEL grants you a right to borrow, at a rate fixed on the day of its opening. Depending on that date, it is either a good deal or a relic: three questions are sufficient to choose between mobilising the right and contributing the savings. Other aids: aids, PTZ and local schemes.
What is the « right to a loan » of a PEL or a CEL?
The right to obtain a savings-housing loan, acquired through savings. Its amount depends on the interest generated, within a regulatory cap. Its rate, fixed at opening, is binding on the lender regardless of the market.
Opened when rates were low, the plan carries a favourable right. Opened when they were high, it retains at least its savings.
The rate of your right to a loan: specific to your plan, and where to read it
Each opening date has its rate. Yours appears on your opening contract and your annual statement.
The State bonus also depends on the opening date: recent plans no longer have one.
Write to your bank: “Please provide me with the breakdown of my savings-housing loan rights: maximum loan amount, applicable rate, maximum term, and the expiry date of these rights.”
The three questions that decide
Does your rate beat current offers?
Compare it to the annual percentage rate of charge, including insurance and fees, over the same term.
Does the amount weigh on your transaction?
Often modest and repaid quickly, it increases the initial instalments. Without smoothing, it can cause a file to be rejected.
Does your project qualify?
Construction, purchase, extension or works on a principal residence. Two additional options:
- a holiday home, for a long-standing CEL, excluding purchase;
- a professional premises that includes your principal residence.
Ask the lender what proof of use it requires.
Ensure the loan offer specifies the regime of your loan
Mortgage or consumer credit: the protections differ. Ensure the regime is specified in the loan offer: the cooling-off period.
Mobilise the entitlement, or contribute savings?
Mobilising means borrowing in addition at the plan rate. Contributing means closing the plan and borrowing less. If the entitlement is cheaper than the market: mobilise. If the entitlement has become expensive: contribute the savings.
The entitlement survives only a short time after a withdrawal: do not close the plan 'to see'. The savings contributed: the personal contribution.
Family entitlements may count towards yours
The accrued interest on the plans and accounts of close relatives (spouse, parents, children, brothers and sisters, uncles, nephews…) may be added to the calculation of your loan. No money moves, and this is not a family gift. Plans in several banks? The one holding the most accrued interest lends.
If your lender is not the bank holding your plan
The plan bank services the loan, under the conditions of the plan. Two lenders can coexist if the principal lender accepts the structure. The transfer of the plan is requested from its bank.
What if the plan reaches its term?
For recent plans, the loan can no longer be granted beyond a certain period after the term: the plan then becomes an ordinary passbook. Request your statement before the maturity date. A withdrawal during the period when the funds are unavailable terminates the plan: read your contract before touching the savings.
The three documents to gather before deciding
- The opening contract: the rate of remuneration and the loan rate.
- The latest annual statement: the accrued interest.
- The statement of loan entitlements, in writing.
Then compare the two total costs over the same period: the formula for the instalment.
Statement in hand? Create your file or have the choice between the loan entitlement and the cash contribution decided.
Sources
- Légifrance — Article L. 315-1 du code de la construction et de l’habitation
- Légifrance — Article L. 315-2 du code de la construction et de l’habitation
- Légifrance — Article L. 315-4 du code de la construction et de l’habitation
- Légifrance — Article R. 315-7 du code de la construction et de l’habitation
- Légifrance — Article R. 315-8 du code de la construction et de l’habitation
- Légifrance — Article R. 315-13 du code de la construction et de l’habitation
- Légifrance — Article R. 315-26 du code de la construction et de l’habitation
- Légifrance — Article R. 315-28 du code de la construction et de l’habitation
- Légifrance — Article R. 315-31 du code de la construction et de l’habitation
- Légifrance — Article R. 315-34 du code de la construction et de l’habitation
- Légifrance — Article R. 315-35 du code de la construction et de l’habitation
- Légifrance — Article R. 315-39 du code de la construction et de l’habitation
- Service-Public.fr — Plan épargne logement (PEL)
- Service-Public.fr — Compte épargne logement (CEL)
- ANIL
- abe-infoservice.fr
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