Assistance for a first property purchase: the steps

Buying a first property is a decisive step that commits a buyer for several decades. Between public assistance schemes, negotiations with sellers and administrative complexity, first-time buyers often find themselves feeling their way through a process full of legal and financial pitfalls. This article sets out the essential steps for securing a first property purchase, from assessing your borrowing capacity to signing at the notary's office.

Assessing your purchasing capacity before starting any search

Calculating a realistic budget

Before starting viewings, a precise assessment of your financial capacity is necessary. The maximum debt-to-income ratio of 35% imposed by the recommendations of the Haut Conseil de stabilité financière (French High Council for Financial Stability) since January 2022 is the ceiling to observe. This ratio includes all of your credit commitments, including existing loans.

Your personal contribution largely determines the scale of your project. Banks generally require a minimum of 10% of the purchase price, intended to cover notary and guarantee fees. A 20% contribution significantly improves your negotiating position and reduces the total cost of the loan.

The impact of variable income on borrowing

Self-employed workers, members of the liberal professions and employees on fixed-term contracts (CDD) are subject to specific assessment criteria. Banks generally use the average income of the last two or three years, reduced by a prudence coefficient. Existing rental income is taken into account only up to 70% of its amount, after deduction of property tax and charges.

Making use of public assistance for first-time buyers

The zero-interest loan (PTZ): conditions and terms

The PTZ (prêt à taux zéro) is the main form of assistance for a first property purchase. Reserved for first-time buyers, this scheme finances up to 40% of the purchase in high-demand areas (zones A bis, A and B1) and 20% elsewhere. Income ceilings vary according to household composition and the location of the property. The conditions specific to buyers with disabilities, for this loan as for the other schemes, are set out in our article on property purchase assistance for disabled persons.

For a couple without children in zone A bis, the ceiling is set at €74,000 of annual income. This condition is checked against year N-2 preceding the loan offer. The property acquired must be the main residence and be occupied for at least eight months a year.

The repayment period runs from 20 to 25 years, with a deferral period of up to 15 years depending on income. This flexibility makes it possible to adjust instalments to the foreseeable change in the household's resources.

The social home-ownership loan (PAS) and its advantages

The PAS (prêt d'accession sociale) is aimed at households with modest incomes, with ceilings slightly higher than for the PTZ. It finances the entire purchase and entitles the borrower to personalised housing assistance (APL). Interest rates, although freely set, remain subject to regulatory maximums revised quarterly.

This scheme has the advantage of covering ancillary costs (notary fees, guarantee fees, improvement works) within certain ceilings. Taking out death and disability insurance remains mandatory, but lenders cannot impose their own group policy.

Local assistance: a supplement that is often overlooked

Many local authorities offer specific assistance to first-time buyers. Regional and departmental councils develop subsidised loans, grants or loan guarantees. These schemes generally target young workers, large families or purchases within certain priority areas.

The Agence nationale de l'habitat (Anah, the French national housing agency) grants subsidies for the improvement of older homes, subject to income conditions and a commitment to let the property. These grants can be combined with national schemes and may represent savings of several thousand euros.

Searching for and assessing the property

Selection criteria beyond love at first sight

Emotion often guides the choice, but an objective analysis is essential. The condition of the property, its potential for development and its legal and tax environment must be examined methodically. For an apartment in a co-ownership (copropriété), the minutes of the general meetings of the last three years should be consulted to identify works that have been voted or are planned.

Orientation, thermal and acoustic insulation, and electrical and plumbing compliance are items of potentially significant expenditure. The energy performance certificate (DPE) provides an initial assessment, but a thorough visit by a professional may reveal hidden defects.

The importance of location and development prospects

Location largely determines the future value of the property. Proximity to public transport, schools, shops and services are the classic criteria of attractiveness. Urban development projects (future transport lines, shopping areas, public facilities) have a positive influence on asset value.

Conversely, some projects may degrade the immediate surroundings. Local urban planning schemes (PLU) and development documents provide information on the foreseeable changes in the neighbourhood. A consultation at the town hall makes it possible to identify projects currently under review.

Negotiating the purchase properly

Negotiation strategy with sellers

Property negotiation follows precise conventions that should be respected. A first offer set between 5% and 15% below the asking price is a reasonable basis for discussion, depending on the state of the local market. This proposal should be supported by objective elements: works to be carried out, defects noted, comparisons with similar properties.

The length of time on the market indicates the seller's motivation. A property that has been on offer for several months suggests greater room for manoeuvre. Conversely, in a tight market, decision times shrink and competing higher bids are not uncommon. On the most frequent negotiation and financing errors, see our analysis of the pitfalls of buying property.

The preliminary contract: compromis or promise of sale

The compromis de vente (preliminary sale agreement) binds buyer and seller reciprocally, whereas the unilateral promise of sale (promesse unilatérale de vente) binds only the promisor. The compromis offers more balanced protection, with identical conditions precedent for both parties.

The usual conditions precedent include obtaining financing, the non-disclosure of hidden easements (servitudes), and sometimes the sale of an existing property. The period for obtaining the loan is generally set at 45 days, but may be extended depending on the complexity of the file. The absence of a reply from the bank within the time allowed releases the buyer from the commitment.

The deposit, usually set at 5 or 10% of the price, is held by the notary or the estate agent. This sum remains unavailable until the authentic deed is signed or a condition precedent that releases the buyer is met. What happens to this sum if the buyer withdraws is dealt with separately in our article on the deposit in a property purchase.

Putting together the financing file

Building the best possible bank file

A complete financing file facilitates review and improves the terms obtained. Lenders require the last three payslips, the last two tax assessment notices, the bank statements for the last three months and proof of the personal contribution. Self-employed workers must provide their balance sheets and profit and loss accounts for the last two or three years.

Professional stability is a major criterion of assessment. A probationary period in progress or a recent change of employer may delay the review. Conversely, significant seniority and career progression prospects favour acceptance of the file.

Negotiating the loan terms

Beyond the interest rate, several elements deserve particular attention. Arrangement fees, generally between €500 and €1,500, are open to negotiation. Borrower insurance often represents a significant cost, particularly for young borrowers or those in higher-risk occupations.

Since the Lagarde law of 2010, reinforced by the Bourquin amendment of 2018, the borrower may freely choose their insurance, provided the cover is equivalent. This substitution of insurance generates substantial savings, sometimes exceeding 50% of the initial cost.

The terms of early repayment should also be negotiated. Some lenders offer partial or total waiver of charges for such operations, which is particularly useful in the event of a quick resale or an inheritance.

The guarantees required by banks

The contractual mortgage (hypothèque conventionnelle) remains the reference guarantee, but its cost (around 2% of the amount borrowed) and its administrative burden push towards alternatives. A surety provided by a specialist body (Crédit Logement, CASDEN, etc.) has a lower initial cost and simplifies the formalities for release of the security.

The conventional bank guarantee, offered by some lenders, avoids external fees but may complicate a change of lender. The choice depends on the estate-planning strategy and on the prospects for the property.

Carrying out technical and legal checks

Prior technical survey

Although not mandatory, a technical survey by an independent professional secures the purchase. This service, charged between €300 and €800 depending on the surface area and complexity, reveals hidden defects and assesses the cost of the works required.

The surveyor examines the structure, waterproofing, electrical and plumbing installations, heating and ventilation. The report costs priority and deferrable work, allowing the price to be renegotiated or future works to be budgeted precisely.

Checking the legal situation of the property

Verifying the seller's legal situation is a crucial step. The notary checks the chain of title over thirty years and ensures that there are no mortgages or seizures in progress. This investigation sometimes reveals undeclared easements (servitudes) or disputes likely to affect the enjoyment of the property.

For co-ownerships, the état daté (statement of account) provided by the property manager (syndic) details the financial situation of the lot. This document reveals any unpaid charges, works voted but not yet carried out and ongoing litigation. A large amount of arrears may justify a renegotiation or abandoning the purchase.

Checking the mandatory diagnostics

The technical diagnostic file (DDT) must accompany every property sale. It comprises the energy performance certificate, the statement of risks and pollution, the asbestos survey for properties built before 1997, and the inspection of electrical and gas installations more than fifteen years old.

These diagnostics, carried out by certified professionals, engage the liability of their authors. A major non-conformity may justify an action under the warranty against latent defects (garantie des vices cachés) if it was not mentioned in the reports. The validity of each diagnostic varies according to its nature, from six months to ten years.

Completing the purchase at the notary's office

Preparing the authentic deed

The authentic deed is generally signed two to three months after the compromis. This period allows for final approval of the financing, completion of any additional diagnostics and satisfaction of the conditions precedent. The notary summons the parties one week before signing for a reading of the draft deed.

This step makes it possible to check the accuracy of the particulars and to ask any last questions. Minor changes remain possible, but substantial changes require an amendment to the compromis. The apportionment of ancillary costs (co-ownership charges, property tax, etc.) is the subject of a precise statement on the day of signing.

Release of funds and handover of the keys

The bank financing is released on the day of signing, after the lender has checked that the deed complies with the terms of the offer. The seller receives the price less sums already paid (deposit, any down payments). The buyer simultaneously pays the notary fees and registration duties.

The keys may be handed over immediately if the property is vacant, or on the agreed date in the case of a sale with sitting occupants. A joint inventory of condition, drawn up in the presence of both parties, avoids later disputes about the condition of the property on handover.

Post-acquisition formalities

The buyer has specific time limits to complete certain formalities. The change of home insurance must take place immediately, the previous policy ceasing to have effect on the transfer of ownership. Energy and telephone contracts require cancellation and new subscription as soon as possible.

The declaration of property income becomes mandatory from the first year, even in the case of personal occupation, in order to declare the cadastral rental value. Owners of main residences benefit from specific exemptions, but the declaration remains necessary.

Frequently asked questions

Can a tenant benefit from the PTZ for a first purchase?

Yes, a tenant may claim the zero-interest loan provided that they have not owned their main residence during the two years preceding the loan offer. This first-time buyer condition is strictly applied: owning bare land or a second home does not exclude a person from the scheme, unlike holding a main residence, even in joint ownership (indivision).

How much time should be allowed between the first viewing and signing at the notary's office?

The average period is between four and six months for a purchase with bank financing. This timetable includes the search (one to three months), negotiation and signing of the compromis (fifteen days), obtaining the loan (45 days by law) and preparation of the authentic deed (two months). First-time buyers should anticipate additional delays linked to the complexity of their first financing file.

Are notary fees negotiable for a first purchase?

The notary's fees are set by decree and are not negotiable. They represent approximately 7 to 8% of the price for existing properties and 2 to 3% for new ones. This difference is explained by transfer duties, which are mainly payable to local authorities. The notary may nevertheless waive certain minor disbursements or offer staggered payment of the fees.

Is it possible to buy before selling your current home?

This situation, common among buyers who already own a property, requires a specific financial arrangement. A bridging loan (prêt-relais) makes it possible to finance the new purchase temporarily pending the sale of the existing property. This solution, which is more expensive, requires sufficient income to bear both repayments temporarily. The sale of the former property is generally a condition precedent of the new purchase.

Is the help of a mortgage broker recommended for a first purchase?

The mortgage broker facilitates dealings with banks and optimises financing terms thanks to privileged relations with lenders. Its remuneration, generally between 1 and 2% of the amount borrowed, is justified by the time saved and the better terms obtained. For complex files or first-time buyers unfamiliar with banking channels, this professional assistance often proves cost-effective.

Can first-time buyers benefit from reduced VAT?

VAT at the reduced rate of 5.5% applies to new homes acquired in certain urban or rural revitalisation zones, with no condition linked to first-time buyer status. This reduction benefits all buyers, subject to compliance with price ceilings and an undertaking not to resell within five years. The geographical conditions and ceiling amounts are revised annually by decree.

How should the optimal personal contribution be assessed?

The optimal contribution reconciles several conflicting objectives. A large contribution reduces the total cost of the loan but ties up liquid funds. The 10% minimum generally remains insufficient in a tight market where sellers favour buyers with a 20% contribution. The balance depends on the borrower's age, income prospects and the parallel building up of precautionary savings for works and unforeseen charges.

Assistance for a first property purchase draws on effective public schemes, but combining them with commercial negotiation and the financial arrangement requires a methodical approach. The success of this major project rests on anticipating time limits, preparing files rigorously and being supported by experienced professionals. Given the growing complexity of regulations and the changing market conditions, dedicated legal assistance secures this major acquisition and optimises its tax and estate-planning terms.