Conventional loan (CP)

Verified 01 September 2026 - Public Service / (Prime Minister)

Do 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 for:

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

The interest rate on 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 a former home and possible improvement works. In the case of upgrading works, the amount of such works shall be at least equal to €4,000 and the accommodation must have been completed for at least 10 years.
  • Works for transforming a room into a home
  • Works in a dwelling to enlarge, by extension or by elevation
  • Works to save energy in an existing dwelling at 1er July 1981 or having been the subject, before that date, of an application for a building permit. The amount of these works must be at least equal to €4,000.

FYI  

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

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

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

Housing must become your primary residence at the latest 1 year after works 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 respecting the 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 TAEG.

The interest rate can be fixed or variable.

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

The term of the loan can range from 5 to 30 years.

The loan agreement may provide that this term may be amended 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  

You should compare the loan offers made by several institutions, as the interest rate of the loan offered may vary within the maximum allowed. To do this, you need to compare the TAEG 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