Are you an employee? Do you want to become an owner but can’t make this project happen? There are several funding mechanisms resulting from the employer’s contribution. Focus on Action Logement Home Loan, a former 1% employer.
If you work for a private sector company, you can benefit from two forms of help in the case of real estate investment: firstly, you can claim a share of the company’s results. As the name suggests, this is an amount calculated according to the company’s results, which your employer “reserves” for you. In principle, it is therefore not paid to you, but is invested and you can use it in the event of the acquisition of your main residence.
Depending on the company, this amount can be very modest or, on the contrary, significant and really represents an incentive to buy. But you may also be eligible for an Action Logement loan. This is not a direct support, but a loan with attractive terms, which is intended to finance your main residence. The two devices can be combined in the same purchase.
Ex 1% employer or 1% housing
You must have heard of Action Logement under its former name 1% employers or 1% housing. Since the reform that entered into force in January 2017, 20 Interprofessional Committees for Housing (CIL) dedicated to housing assistance have come together under the same name: “Action Logement”.
The organization administers the Employer’s Construction Effort Contribution (PEEC), a contribution paid by all private sector companies with at least 20 employees.
Designed for employees
Action Logement’s two main missions are: to support employees in their residential and professional mobility; build and finance social and “transitional” housing. Action Logement helps young workers, precarious or mobile workers or those who have to deal with a life accident that results in a significant drop in income.
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Loans and help from Action Logement
A lot of help and advice is provided by Action Logement to future owners or owners, whether it is buying a house, changing it or renovating it. A construction or acquisition loan for new real estate will help you buy your main residence; a loan to buy an old property without a job, which allows you to finance up to 30% of your main residence at a discounted rate; access loan + for the purchase of HLM or PSLA housing with a maximum loan of 45,000 euros; help if you wish to carry out work to add a living area of at least 14m2; financial assistance for carrying out insulation or heating works; adaptation of your accommodation for persons with disabilities, assistance with the financing of necessary works at a discounted price; assistance in rehabilitating degraded co-ownership that is the subject of a protection plan or planned housing modification.
For example, in new construction: Action Logement provides a housing loan with a reduced rate of 1% (without compulsory insurance) in a maximum amount of EUR 30,000, with a repayment period not exceeding 25 years.
The access loan applies to you if you work in a private company – non-agricultural – with more than 10 employees. To benefit from this: you must not have owned a property in the last ten years; must meet certain energy efficiency standards; and the provision of this loan depends on income criteria.
Directly at your employer
Note that an employer subject to the construction effort participation (PEEC) employer may also elect to invest directly through reduced rate loans to finance the construction of the principal residence of its employees or their spouse, ancestor and descendant.
SOFIAP preferential loan
Another option: a discounted loan from SOFIAP. The property ownership finance company is a specialist in employer-favored property loans for its employees. A solution that would meet the growing needs of companies to build lasting loyalty among their employees while allowing them to create real estate assets.
Challenges magazine reports that SOFIAP has been offering employees preferential loans for several years at preferential rates of up to 20,000 euros over a period of 10 years.