The beautiful days are here and with them certainly the desire to renovate and do work in your home. Take the opportunity to bring more comfort to your whole family. Why not install a veranda in your garden, or transform your garden? The layout of your attic to add a more peaceful living space in your home. Change the frames or place double glazing to save on your fuel oil consumption bill.
Who can make a work loan?
Only the owners can make a work loan. A tenant cannot take out a loan under the preferential conditions of the works loan. He will have to take out a classic installment loan.
What are the conditions for making a work loan?
- Being the owner of his home;
- Provide the quote signed by both parties (the contractor and the owner);
- In the absence of an estimate, provide the invoice for the work;
- The estimate must cover at least 80% of the amount of the sums borrowed;
- ID card ;
- Last three pay slips;
- Bank extracts to which the salary is paid;
- Title of the house;
- Loan with two names for married people.
Is there a maximum borrowing limit?
No, everything will depend on your ability to contribute.
Installment loan or mortgage loan?
When it comes to works loans, this is an important question that is often asked to us: what is the most interesting formula: installment loan or mortgage credit?
In general, the installment loan will be the winning formula. Indeed, mortgage credit does however incur costs and even if the rates are lower in mortgage credit (3.5%), the costs incurred by mortgage credit will lose this advantage. The rates on installment loan are around 7%, so it is only if you plan to borrow a very high amount (more than 50,000 dollars) that the mortgage will become attractive.
The mortgage loan will be the solution for the candidate borrower who cannot offer other sufficient guarantees (for example if the amount of the salary is too low or if there are already other loans in progress).
Are mortgage loan fees important?
When purchasing your home, the financial institution will provide a mortgage guarantee. This guarantee will entail costs of four orders: costs of borrowing deeds, notarial costs, registration fee for registration administration and VAT.
When your initial mortgage loan is already well repaid, you can take out a mortgage loan again to carry out work. In this case, the costs will be lower. They will no longer be of two types: borrowing deed costs and notarial fees.
So, to know exactly which of the two formulas is the most interesting for you, you will have to ask one of our brokers to analyze your file. Let’s say that below 25,000 dollars and unless you really have no other solution, you will have to please the installment loan.
And do not forget….
At a rate when raw materials are running out and given the frenetic increase in energy prices, doing insulation work for example means reducing your energy bills. The same goes when you buy a refrigerator or a dishwasher of the upper range which will consume significantly less electricity. Ultimately, you will be a winner and participate in the ecological effort.