French Polynesia to Offer Zero-Rate Loans for Homebuyers
Table of Contents
- French Polynesia to Offer Zero-Rate Loans for Homebuyers
- Details of the Zero-Rate Loan Program
- Real Estate Agents Seek Clarity
- Income Criteria and Loan Terms
- Loan to be Supplemented by Mortgages
- funding and Market Impact
- Next Steps
- French Polynesia Zero-Rate Loan Program: Your Questions Answered
- What is the French Polynesia Zero-Rate Loan Program?
- Who is Eligible for the Zero-Rate Loan?
- What are the Loan Terms?
- How Much Funding is Allocated to the Program?
- What is the Impact on the Real Estate Market?
- How Does This Loan Differ from a Traditional Mortgage?
- What are the Next steps for the Program?
- Summary of Key Program Details
PAPEETE, French Polynesia (AP) — Starting in July, French Polynesia will launch a zero-rate loan program aimed at helping approximately 1,000 households achieve their dream of homeownership. The initiative seeks to provide financial assistance to eligible residents looking to purchase property.
Details of the Zero-Rate Loan Program
The National Ministry of Economy adn Finance promotes zero-rate loans as a way to “finance part of the purchase of your main residence.” While the program is new to French Polynesia, similar initiatives in France have seen considerable success.
Real Estate Agents Seek Clarity
The Polynesian Federation of Real Estate Agents has expressed interest in understanding the specifics of the program. Liliane Billon Cuisine, director of Rava Immobilier, raised several key questions. “What will be the duration of the loan? who will be able to benefit, and what income ceiling will be imposed?” she asked. “It is indeed very significant to be able to help our customers by telling them that the territory has set up a new system which will finally allow them to put a roof on their heads.”
Income Criteria and Loan Terms
Oraihoomana Teururai, the minister in charge of land and housing, provided some initial details. According to Teururai, eligibility will depend on household income, wiht the ceiling set at around 1.5 times the minimum wage for a single person, scaling up to approximately 4 times the minimum wage for couples with four children.The loan will be repayable over a 25-year period, matching the terms of traditional mortgages.
Loan to be Supplemented by Mortgages
The zero-interest loan will not cover the entire cost of a home purchase. Recipients will need to secure a traditional mortgage to supplement the zero-rate loan.
funding and Market Impact
Starting in July, 400 million CFP (approximately $3.6 million USD) will be allocated annually to the program through 2028,enough to fund 1,000 zero-rate loans. In related news, recording rates for property acquisitions decreased from 11% to 7% on Jan.1, 2025, potentially providing a further boost to the real estate market.
Next Steps
The zero-rate loan system will soon be presented to the CESC (Economic, Social and Cultural Council), which will have one month to study it before its examination in the French Polynesia Assembly.
French Polynesia Zero-Rate Loan Program: Your Questions Answered
This article provides facts about a new zero-rate loan program in French Polynesia designed to help residents purchase property.
What is the French Polynesia Zero-Rate Loan Program?
The french Polynesian government is launching a zero-rate loan program starting in July. This initiative aims to assist approximately 1,000 households with homeownership. The National Ministry of Economy and Finance promotes it as way to help finance the purchase of a main residence.
Who is Eligible for the Zero-Rate Loan?
Eligibility depends on household income.
Single Person: The income ceiling is around 1.5 times the minimum wage.
Couple with Four Children: The income ceiling is approximately 4 times the minimum wage.
What are the Loan Terms?
Interest Rate: 0%
Loan Duration: 25 years, matching the terms of conventional mortgages.
Loan purpose: To finance part of the home purchase. borrowers will need a traditional mortgage to cover the full cost of the home.
How Much Funding is Allocated to the Program?
Annual Allocation: 400 million CFP (approximately $3.6 million USD)
Program Duration: Through 2028
Number of Loans Funded: Approximately 1,000
What is the Impact on the Real Estate Market?
The decrease in recording rates for property acquisitions, from 11% to 7% on January 1, 2025, could further boost the real estate market.
How Does This Loan Differ from a Traditional Mortgage?
The primary difference is the interest rate. Traditional mortgages have an interest rate, whereas this program offers loans with a 0% interest rate. However, the zero-rate loan will not cover the entire cost of the home; a traditional mortgage will be needed to supplement the loan..
What are the Next steps for the Program?
The zero-rate loan system will be presented to the CESC (economic, Social and Cultural Council), which will have one month to review it before examination by the French Polynesia Assembly.
Summary of Key Program Details
| Feature | Details |
| ——————— | ————————————————————————————————————– |
| Program Goal | Assist approximately 1,000 households in homeownership. |
| Interest Rate | 0% |
| Loan Duration | 25 years |
| Eligibility | Based on household income, with income ceilings tied to minimum wage (see details above). |
| funding | 400 million CFP (approx.. $3.6 million USD) annually, through 2028.|
| Additional funding | Recipients will need to secure a traditional mortgage to supplement the zero-rate loan. |
| Market Impact | Potential boost to the real estate market due to the program and the decrease in recording rates for property. |
