You want to buy a home but your financial means do not allow it? No worries, an ideal solution is available to you, the social accession loan or PAS.
Definition of the social accession loan. This state-subsidized loan aims to enable low-income households to access property. When all the selection criteria are met, people wishing to access it can apply to a partner bank and thus benefit from an approved loan for which the State is the guarantor of part of the risks.
The main advantage of the SAP is to facilitate the accession procedures and to reduce the costs for the beneficiaries. Already, the administrative costs for the opening of a PAS as well as the fees of the notary on the loan contract are reduced. But above all, it incorporates security in the form of reimbursement assistance granted by Action Logement in the event that the beneficiary has unfortunately lost his job. It can also be combined with Personalized Housing Assistance (APL), a Zero Rate Loan (PTZ), a zero rate eco-loan or even a home savings loan. On the other hand, it is not complementary with a traditional mortgage loan from any bank.
The Social Accession Loan can finance the acquisition of new housing at a favorable rate. It can also be granted in the form of aid for carrying out rehabilitation or renovation work on an old house if the related expenses exceed € 4,000. It is repayable with interest and can finance all or part of your expenses. These can cover, among other things, the price of the land, various insurance costs, certain taxes relating to construction, the cost of the work, etc. The duration of the PAS can range from 5 to 30 years, or even 35 years maximum. The rate, meanwhile, can be fixed and proportional to the duration of the contract or variable. If the procedures are simplified, some conditions must still be fulfilled to benefit from them.
Requirements for access
Access to the PAS is possible when the applicant’s resources are less than a variable ceiling depending on the place of residence and the family expenses of the latter. Then, the household’s total resources and its repayment capacity are assessed to determine the amount of loan to be granted to it.
Furthermore, the accommodation acquired must be occupied as a principal residence or, in certain very specific cases, be rented on a temporary or extended basis.
The Social Accession Loan does not exist as such in Belgium but it is possible to obtain an advantageous bank credit when you have modest incomes. This is Social Credit.