All about the housing, PEL Savings Plan

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Winter-house-pel-housing

With the ELP you you build a personal contribution through regular saving. And at the same time, you earn rights to loan guarantee you a rate from the outset to finance your property.

The regular constitution of your intake

You make payments programmed from 45 EUR per month and you build you a savings without thinking for at least 4 years.
You can achieve exceptional payments in addition to payments programmed up to the ceiling of the ELP (61 200 EUR) and extend your ELP up to 10 years.

Spent 10 years, you can no longer make payments, but your PEL continues to produce interest for 5 years.

If opened from 1st March 2011, your ELP is automatically transformed into a classical savings to the 15th year. The Bank sets the rates of pay.

Renewal

Open from March 2016 and less PEL of 10 years are extended automatically every year unless otherwise decided by your share. The Bank shall inform you each year, one month prior to the anniversary date of the plan.

This provision shall apply from July 2016 for the ELP open before March 2016.

The remuneration of your savings and a premium in the event of loan

Your savings is paid at 1.50 %(1) gross per year (excluding premiums) for the duration of the placement.
The interest is exempt from tax on the income for 12 years.
A premium is paid by the State if you put up a housing loan savings.
A loan at attractive rates and guaranteed to buy or renovate your property

The rate of pay is set at the opening of the PEL.

Rate of pay of the ELP (excluding premiums of State)
Opening date Rate
August 1, 2003 to January 31, 2015 2.5%
February 1, 2015 to 31 January 2016 2%
Since February 1, 2016 1.5%

Interests are capitalized, i.e. at 31 December of each year, they are added to the already saved capital and become producers of additional interest.

The interest is exempt from income tax up to the eve of the 12th anniversary of the ELP.

They are subjected each year to social security levies.

You can get a housing loan savings 92 000 maximum EUR at a rate attractive, fixed and known in advance (2.70% excluding the insurance for a PEL paid at 1.50% (1)).
The savings the ELP housing loan entitlements are combined with those from the CEL for a total amount of 92 000 EUR.
You can pass the rights to loan to a relative (parents or children) under certain conditions.

(1) annual rate excluding State premium and levies in force on 01/02/2016. The interests of the ELP are subject to social security levies, in the first year and the effective income tax of the 12th anniversary of the Plan.

Holder

Any natural person, major or minor.
1 PEL per person. Each Member of a family may hold a PEL.
No joint account opening.
The CEL and the ELP must be held in the same establishment to accumulate rights to loan.

Guarantees / risks

The ELP is a fully guaranteed capital investment.

Duration

4 years minimum,
Possibility to terminate the ELP at any time (diminution of benefits in the event of interruption before the 4th year).
Possible extension of the payments until 10 years within the limits of the ceiling of EUR 61 200.
Possibility to keep the ELP which continues to be paid (no payment possible) until 15th maximum birthday. At this date, the ELP will be automatically closed and funds will be disbursed on an account on libretto. Loan and premium rights will be permanently lost.

Payments

Minimum opening: 225 EUR.
Mandatory minimum payments:
45 EUR per month
135 EUR per quarter,
270 EUR per semester.

Amount of payments annual €540 minimum.

Ceiling of payments: 61 200 EUR (excluding capitalized interest).
Power supply from a mandatory bank account.

Remuneration

1.50% gross per annum excluding State premiums.
Rate guaranteed until the close of the ELP (unless closing before the 2nd anniversary).
Calculation of interest biweekly.
Interest capitalized on 31 December and credited on the ELP early January.
In the event of realisation of a housing loan savings of a minimum amount of 5 000 EUR, this performance is complemented by payment of a representative a bonus of 1% of the rate of pay of your ELP at the date of maturity of it. This bonus is paid to the holder of an ELP (1) and up to EUR 1 000. This ceiling is increased to EUR 1 525 if the loan savings housing contributes to the funding of a construction or acquisition of energy efficient housing operation.

 

Rights to maturity, possibilities of:

extend the ELP up to 10 years, with maintenance of payments programmed within the limit of the ceiling of deposits;
keep the ELP (beyond 10 years and up to 15 years maximum), but without being able to make new payments. Amounts of the premium status and loan rights frozen at maturity;
withdraw funds (not possible partial withdrawal), rights to loans are retained for 5 years after the withdrawal within the limit of 15 years of the ELP.

Costs

No, with the exception of the cost of transfer to another institution
(EUR 65).

Statements of account

In January: a survey of annual situation, summarizing the payments as well as interest earned since the opening of the PEL.
A survey to each exceptional payment or modification of your payment plan.

Availability

Any withdrawal (anticipated or not) causes the closing of the ELP.
The termination before the 4th anniversary causes the loss of all or part of the benefits of the ELP:
cancellation before the 2nd anniversary: loss of rights to premium and ready. interests, recalculated at the rate of the CEL in force at the date of termination,
cancellation before the 3rd anniversary: loss of rights to premium and ready. only, bank interest of the loan are served,
termination between the 3rd and 4th anniversary: bank interest of the ELP served, normally; premium discount of 50% rights: rights to the loan savings housing acquired at the end of the 3rd year.
Possibility to transform its PEL in CEL for not to lose his rights to loan, until the expiry of the ELP is not reached.

Rights to loan: the principle

Rights for loan are the possibility to benefit from a housing loan savings of a minimum amount of €5,000-worth and maximum of 92 000 EUR, at a known in advance, rate the savings amount.

At the end of 4 years, you can close your ELP. You will then retrieve the funds that you have deposited, as well as interest income.

Also for one year, you will retain the right to loan.

  Note:

social security levies on interest generated by an ELP are due from 1st year.

You can also decide to retain your ELP as a savings product.

That Fund with this loan?

The loan can help including:

  • the purchase and the construction of a dwelling (new or old) intended to be your main home,
  • the financing of work or improvement of housing intended to be your principal residence.

What Bank request it?

In principle, you must make the request to the bank where you have your ELP. However, you can choose another institution if you meet the conditions to get it.

The Bank offers a loan which may require guarantees, including:

It may also impose an insurance.

  Note:

the Bank that gives you a loan may not require you to domicile your income at home.

Amount and duration of the loan

The amount and duration of the loan depend on the interests you have purchased (before payroll) during the phase of the ELP savings.

Maximum loan amount: €92 000.

Loan term: 2 to 15 years.

In the event of cumulation of savings housing (CEL) and PEL held by a licensee, the maximum amount of the loan will be €92 000 and these loans should be made by the same institution.

The obtained loan interest rate

The interest rate depends on the period where the PEL was subscribed.

Interest rate of the loan on the basis of its date of subscription
Open plan Interest rate of the loan
Between May 16, 1986 and February 7, 1994 6.32%
Between February 7, 1994 and January 22, 1997 5.54%
Between 23 January 1997 and June 9, 1998 4.80%
Between 9 June 1998 and July 25, 1999 4.60%
Between 26 July 1999 and 30 June 2000 4.31%
Between July 1, 2000 to July 31, 2003 4.97%
Between August 1, 2003 and January 31, 2015 4.20%
Between February 1, 2015, and January 31, 2016 3.20%
Since February 1, 2016 2.70%

Conditions for the award of State

For the ELP open since March 1, 2011, the State premium is paid only if the ELP gives place to a loan of EUR 5,000 minimum.

The amount of the premium depends on vested interests and the assignment of the loan, as well as the period where it was taken out.

  • If the ELP has been opened between March 1st, 2011 and January 31, 2015, you will get a bonus of a value equal to 40% of interest earned to the date of the end of your ELP.
  • If the ELP has been opened since February 1, 2015, you get a bonus of a value equal to 50% of the interest earned to the date of the end of your ELP.

Early repayment of the loan

An early repayment of the loan is possible, wholly or partially.

Assignment of rights to loan

Loan entitlements may be transferred by the holder of the account under certain conditions:

  • to the spouse;
  • to ascendants, descendants, brothers, sisters, uncles, aunts, nephews and nieces of the beneficiary or his spouse;
  • the spouses of brothers, sisters, ascendants and descendants of the beneficiary or his spouse.

Assignments of rights are considered as a complement to the effort of the borrower's own savings: therefore, the borrower must use the totality of the rights generated by its PEL/CEL before use of the rights which are transferred to it.

Example: You have a PEL opened in 2001 which gives you rights to 4.97% loan. You have opened an ELP to your minor child in 2003 which gives rights to loans at 4.20%. You must first use your rights to loan, less interesting, in full, before you can complete them with rights to loan your child give you.

Only can benefit from the transfer of loan entitlements of an ELP holders to loan from an ELP, i.e. holders of an ELP open for at least three years.

 

Product held
by the beneficiary
of the assignment
Product held by the transferor
CEL
open since
12 months minimum		 CEL
open since
18 months minimum		 PEL
open since
3 years minimum
-Nil
-CEL 12 months minimum
-CEL 18 months minimum
-PEL 3 years minimum
NON
NONOUIOUI
NON
OUIOUIOUI
NON
NONNONOUI

Social security payments

Interests and the State premium are subject to social security contributions regardless of the duration of the plan.

Social security levies on interest are due annually during registration of the interests,
Social security levies on the premium were collected during the payment.

Taxation of the interests of the ELP from their 12th birthday
Interest generated from the 12th anniversary and acquired after 01/01/2006 are taxed at the progressive rate income tax. A mandatory levy as 24% deposit is levied annually except in the case of exemption from deposit.
How to extend my PEL?

At the opening of your PEL, you choose the minimum amount (225 minimum EUR at the opening, then 45 EUR) per month, 135 EUR per quarter or 270 EUR per semester and duration of the payments programmed (4 years of age to 10 years) while respecting the global ceiling of the EUR 61 200 of payments.
You also select the extension of your ELP mode:

either by tacit renewal: payments are renewed annually unless otherwise advised by your share until the 10 years of the plan),
or at your request to the original maturity, then each successive maturity. Mail is then sent to you 1 month before the due date. You have a period of 6 months after the deadline to make your request: the missing monthly payments are then caught only once. No response or if the answer is negative, your votre PEL PEL comes then to end. You can no longer pay on your plan, or extend it. Loans and premium rights are permanently frozen but already placed funds continue to generate interest.

Between 4 and 10 years of savings, the investor who opens a plan from March 1, 2016 can now automatically extend its ELP of one year, without manifest. Indeed, on each anniversary date of the contract, it will be to the banking institution to inform that he can extend his savings a year either use his savings. Housing savings plans opened before March 1, 2016, this modality of extension will be possible as from July 1, 2016.

Past 10 years of economy, it is more possible to make payment but the ELP continues to produce interest for 5 years.

In its 15th year, the ELP is automatically transformed into classic savings book.

FAQ

Who can open an ELP?

Any person, major or minor, can be the holder of an ELP.

You can hold only a single ELP.

If you have a savings housing (CEL) account, you can subscribe an ELP provided they hold it in the same bank.

If I'm underage?

Minors may retirer(attention sur un PEL vous ne pouvez pas retirer sous peine de clôture dele de compte), without permission of their representative legal, the amounts listed on their books, but only from the age of sixteen years of age unless their representative legal. A minor can open only a livret A. However before his 16 years, this is his legal representative who will set rules of operation.

What happens at the end of the plan?

The coming term of the plan does not require the holder to crack or to withdraw funds that are deposited, but does allow more new payments. Savings continues to be paid by the Bank at the contractual rate until the withdrawal of the funds but deposits no longer produce or bonus (even if the ceiling has not been reached), or rights to loan. At the 15th anniversary, the ELP is automatically closed and loan and premium rights are definitively lost. The funds are credited to an account on booklet.

Can I make a partial withdrawal on my PEL?

No, for the duration of the ELP, funds are unavailable.
You must therefore close the ELP in its entirety if you want to have the funds.

At what rate of loan do I qualify?

ELP borrowing rate is determined at the time of subscribing. Guaranteed regardless of the evolution of the market, it is correlated with the rate of pay:
Borrowing rate = rate of pay off State premium + Management Board.
For example, the funds placed on an ELP opened in February 2016 can benefit a housing savings loan at a rate excluding insurance from 2.70%.
The amount and duration of a housing loan savings are calculated from vested interests.

I have an ELP to another banking institution, then I upload it?

If you own an ELP to another banking institution, you can ask to be transferred in your agency. Your adviser will make you fill out a transfer request, and we put ourselves in relation to the establishment owner.
We deal entirely with the approach, and your ELP will be transferred as what retaining all its characteristics (age, remuneration, rights to loan, award-winning State…).
Attention: the ELP and the CEL must be compulsorily detained in the same establishment.

Is it true that the credit of the ELP is uninteresting?

With downward qu ' there in recent years, the rate of the credit of the ELP is totally uninteresting as far more expensive than that from your bank to fixed rate, however it is a good product of savings and in the case of reassembled rates may be that it will be more interesting.

Reference texts

 

 

Julien Floer

Written by

Auteur du site http://richesse-et-finance.com , financier et une envie de réussir!

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