Smoothed loan (tiered)
A structure combining several loans of different terms to produce a constant total installment. When a short loan (PTZ, employer loan) ends, the main loan increases by the same amount to keep the repayment effort stable. It is a budgeting-comfort lever that optimizes borrowing capacity.
Key points
- Keeps the total monthly payment flat by adjusting the main loan as co-loans are paid off.
- Optimizes borrowing capacity because the bank sizes its loan on a fixed overall installment.
- Especially useful when a PTZ, PAS or employer loan runs shorter than the main loan.
- Requires a consolidated amortization schedule to verify bankability and actual repayment effort.
Frequently asked questions
How does loan smoothing work in practice?
The broker calculates the maximum affordable monthly payment, then splits financing between subsidized loans (PTZ, Action Logement…) and the main loan. When a short loan ends, the freed portion is redirected to the main loan, whose installment rises by that amount, but the total remains the same.
Why does smoothing increase borrowing capacity?
Without smoothing, the bank calculates the debt ratio on the sum of all concurrent loan payments, which can exceed 35%. With a smoothed structure, the overall installment is constant and the bank does not stack repayment peaks; the residual income and debt ratio are therefore more favorable.
What mistakes should be avoided when designing a smoothed loan structure?
The main mistake is failing to model the increase in the main loan installment when the PTZ ends, without verifying that the borrower will be able to absorb it at that precise moment. A €200 rise five years out may seem distant, but if it coincides with the end of a fixed-term contract or a birth, it becomes critical.
In practice
A borrower combines a €80,000 PTZ over 10 years at €500/month with a €170,000 main loan over 25 years. With smoothing, the main loan starts at €700/month for 10 years, then rises to €1,200/month for the remaining 15 years, keeping the total monthly payment at €1,200 throughout the life of the structure.
Put it into practice with CourtImmo
See how CourtImmo software helps brokers on this topic:
Official sources
- Obtaining a mortgage loan · Service-Public.gouv.fr
- Mortgage credit (official guide) · Service-Public.gouv.fr