As its name suggests, the civil servant loan is aimed at holders of the public service. This very specific civil servant property loan compensates for the fact that these employees are not entitled to the “employer loan”, which is only accessible to employees in the private sector. This type of loan is included in the list of types of mortgage for certain categories of people.
How does the official loan work?
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Some loans are intended for specific categories of people, depending on their resources or their professional activity. This is the case for civil servant property loans.
The civil servant loan is a real estate loan granted within the framework of a project of acquisition of a new or old housing, with or without work to be carried out, for use of main residence. This is a type of loan offered by Cream Bank for interest rates fixed in advance (in 2017: 4% the first four years and 7% the following years). It is the equivalent for the public service of the employer loan (Action Logement) in that it gives entitlement to personalized housing assistance.
However, this official loan cannot cover the entire cost of housing: it must be backed by a regulated loan: approved loan or Social Accession loan. It is granted for a period of 10 to 15 years maximum.
As for the amount of the official real estate loan, it is determined according to the number of rooms in the accommodation and its geographic area. In 2017, these amounts ranged from $ 1,219.59 (for a 1-room apartment, located in zone 3) to $ 3,887.45 (for a 7-room apartment, in zone 1).
In which cases can one benefit from the official real estate loan?
The answer is in the question: the official real estate loan is reserved for agents of the state and territorial public service.
In the case of a couple of borrowers, if one of the two works for the public service while the other is employed in the private sector, it may be worth taking out two independent loans. This is to take advantage of the advantages of the civil servant loan on the one hand, and the 1% employer loan on the other!
Note that employees of public administrations enjoy another advantage in addition to this civil servant loan: they can benefit from a distinctive surety, called civil servant mutual surety, through which a dedicated body securely guarantees their bank loan – without no charges.