The 1% housing loan for the purchase of a house


The 1% housing allows employees to obtain loans from their employers in order to acquire real estate. Indeed, your employer is required, through the contribution, to participate in the financing of your main accommodation.

All industrial or commercial companies with at least 10 employees are required to book annually a portion equivalent to 0.45% of their payroll (instead of 1% previously, hence the original name of this credit) for the financing of the employees’ main residence. This loan will be allocated to you without means test. Its amount is capped at $ 16,800 but it will allow you to benefit from advantageous rates. It is spread over a period ranging from 5 to 20 years.


Beneficiaries of the 1% housing loan

housing loan

This loan is mainly intended for employees who are looking to acquire real estate (new or old) or land to build. The granting of this credit is not subject to any conditions, it suffices that your request is accepted by your employer.

Sometimes your employer may refuse your 1% housing credit file for several reasons, in particular if the annual contribution reserved as a 1% housing credit is already spent or if the available funds are allocated to other priority purposes, or to certain employees. such as aid to young recruits…

Do not worry about your deadlines in case you leave your current job, because the 1% housing loan is not linked to the employment contract: you always keep possession of your accommodation even if you give up your job in the ‘business.


What is the objective of a 1% housing loan?

home loan

The 1% housing loan is granted by companies to their employees, to finance the purchase of their main residence (it must be occupied for more than 8 months per year).

If you want to benefit from this loan, your resources must not exceed a ceiling which varies according to the geographical location of the property and the composition of the household.

Your loan can be used for:

  • the acquisition and development of land for its construction;
  • The purchase of a new residence.
  • The construction of your land provided that its work is completed within a maximum of four years.
  • the purchase of old housing with development work but the amount of which exceeds 20% of the purchase price.
  • the purchase of old housing without work.


How much is the 1% housing loan?

How much is the 1% housing loan?

This loan can usually finance up to 50% of the cost of your purchase, especially if your income is low enough. This ceiling often varies according to the geographic location of the property and the type of acquisition (new housing, land, etc.).

What is his interest rate?

The rate of this credit generally varies between 1.5 and 3%, as for its repayment duration, it is between 5 and 20 years. If it is your employer who grants this loan directly, you will be exempt from application fees and those relating to insurance, but the rate will be at its maximum (3%). In the event that the management of the funds is entrusted to an external organization, the rate will fall by half up to 1.5%.

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