Conventional loan (CP)

Verified 01 December 2025 - Public Service / Directorate of Legal and Administrative Information (Prime Minister)

You want to know what an agreed loan is, in what cases it is granted and under what conditions? We present you the information to know.

This is a real estate loan intended for:

  • Either to the owner who wants to do work in his main residence
  • To the person who wants to own his or her principal residence by buying it or having it built.

The interest rate of the loan may not exceed a maximum amount.

The loan is intended to finance the following operations:

  • Purchase of land and construction of housing on this land
  • Purchase of a new home
  • Purchase of old housing and possible improvement works. In the case of improvement works, the amount of such works must be at least equal to €4,000 and the accommodation must be completed for at least 10 years.
  • Work to transform a room into a dwelling
  • Work in a dwelling to enlarge it, by extension or by elevation
  • Work to save energy in an existing dwelling at 1er July 1981 or for which an application for a building permit was submitted before that date. The amount of this work must be at least equal to €4,000.

FYI  

when the loan finances work, it must be completed within the loan repayment period. But you can request an extension of time for the work, in some cases (cases of force majeure, natural disaster, litigation, illness...).

The loan can finance the entire real estate operation, but it cannot finance the following costs:

  • Notary fees
  • Mortgage Fees
  • Loan application file processing fee
  • Possible purchase costs of furniture to furnish the home.

Housing must become your principal residence at the latest 1 year after completion of work or purchase.

This period may be 6 years maximum when the 2 conditions the following are combined:

  • You will live in the accommodation from your retirement
  • Until this date, the accommodation is rented in accordance with specific rules.

The interest rate may not exceed one maximum rate.

FYI  

Within this limit, the interest rate offered to you may vary from one credit institution to another. So you have the advantage of comparing several loan offers using their APR.

The interest rate can be fixed or variable.

A flexible interest rate (i.e. combining fixed and variable rates) can also be proposed.

The term of the loan can range from Five to 30 years old.

The loan agreement may provide that this term may be modified to either reduce it or extend it to total 35 years maximum.

You must apply to a financial institution (for example, a bank) that has signed an agreement with the government to grant this loan. You can consult the list of establishments concerned.

FYI  

It's a good idea to compare loan offers made by several institutions, as the interest rate on the loan offered may vary within the maximum allowed. For this, you need to compare the APR of each loan offered to you.

The loan may be supplemented by the following financing:

Warning  

The loan cannot be combined with a "classic" mortgage.

Who can help me?

Find who can answer your questions in your region