In effect since 1969 and after having long been the preferred placement of the French, the housing savings plan has lost its superb despite a redesign in 2012. With a rate since 1 February 2015 of 2%, the ELP offers a attractive remuneration?
The housing savings plan operates in two phases:
- A savings phase first, which can last from 4 years minimum up to 10 years maximum
- A loan phase at a preferential rate, the amount of which depends on the interest earned.
At the end of 10 years, the holder no longer has the possibility to make payments.
The maximum duration of the life of the contract can not exceed 15 years maximum.
The reformed ELP focuses on homeownership. Thus, if the old plans made it possible to invest in a rental investment, the loan of the new housing savings plan is exclusively intended for the acquisition of the principal residence.
The main lines of the 2011 reform
Since March 1, 2011, the new housing savings plan (PEL) will offer a remuneration that may vary according to the decisions of the Governor of the Bank of France.
For information, Plans opened up to this date retain their characteristics and their own returns.
Rules of operation
Anyone, including minor children, residing in France can purchase an ELP up to one plan per person.
Beginning in the fourth year, the plan holder may extend from year to year up to a maximum of 10 years. Then, he has 5 years to assert his rights to mortgage, which can bring the total duration of the operation to 15 years, it retains all its advantages in terms of rates.
To open a home savings plan, you must pay an initial contribution of € 225 and then make regular savings of a minimum amount of:
- 45 € per month
- 135 € per quarter
- 270 € per semester
- € 540 per year
Total payments can not exceed € 61,200 per PEL, excluding interest.
To benefit from the state bonus, it will now be necessary to apply for and obtain at the end a loan with a minimum amount of € 5,000. In other words, an ELP with a minimum payment of 4 years is no longer of particular interest.
The maximum premium is set at:
- € 1,525 if the dwelling obtains the BBC (Low Consumption Building) standard
- € 1,000 in other cases.
Closure of the plan
When the savings plan comes to an end, if the owner has not come forward, the bank closes the plan and automatically transfers the available funds to a CEL. The state premium is then lost.
The interests of the ELP are exempt from income tax and the flat-rate lump-sum levy but are subject to social security contributions of 15.5%, which will henceforth be deducted from interest every year.
The right to loan
The amount of the right to loan depends directly on the interest earned on the plan and the duration chosen.
The savings plans open since August 1, 2003 allow a loan at a rate excluding loan insurance of 4.20% up to a limit of € 92,000.
If the holder waives his right to a loan, he loses the benefit of the plan (except plans opened before December 12, 2002)
These rights are transferable between family members.
It should be noted that the PEL loan can be cumulated with all the assisted loans such as the PTZ or the ACTION LOGEMENT loan.