Housing Savings operations are regulated by the State. Upon subscription, the terms of the savings phase and the loan phase are determined contractually. The calculation of the loan entitlement for an ELP or CEL is done by combining the chosen repayment period and the interest earned . Explanations with our credit experts.
The calculation of the right to home loan savings is done in the same way on an account or on a plan. During the savings phase, the borrower accumulates interest based on savings. They determine a loan amount based on the chosen duration. The principle is simple: the shorter the duration chosen, the greater the amount of the home savings loan .
So you can choose to repay between 2 to 15 years but know that there will be some constraints. Indeed, this type of credit is usually shorter than the main loan, which sometimes has a heavy impact on monthly payments. To avoid this, it is possible to smooth out the principal loan and the housing savings loan.
Take a few examples of a 4-year savings period with an ELP opened on 1 July 2009. In all cases, the holder makes an initial payment of € 500.
It can be seen that savings of € 100 a month give relatively low results. On the other hand, the choice of a term of less than 10 years involves repaying deadlines that may ultimately be too important for the borrower.