A renovation loan can be used to purchase materials if you want to carry out your work yourself or to pay for professional contractors. Below you will find an (incomplete) list of what you can finance with such a renovation loan:
- replace your chassis,
- replace the water pipes or renew your electrical installation,
- build a swimming pool,
- construct or renovate a terrace or veranda,
- replace your kitchen or bathroom,
- install an alarm system or a reinforced door,
Some financial institutions offer a “green loan”
In concrete terms, this means that you can obtain a more interesting interest rate to finance specific energy-saving renovations in your home. Each institution has its own list of works for which you can apply for a green loan. A few examples are:
- a new heating boiler or major maintenance of your current boiler,
- install solar panels
- insulation work,
- install a heat pump,
- installing double glazing or high-efficiency windows,
If you wish, you can also finance the implementation of an energy audit to know which works could be effective.
Choose between a mortgage loan or a renovation loan
You can use both loans to finance your works. But how can you make your choice? What are the differences?
If you opt for a mortgage loan, you will enjoy a more interesting interest rate, but then certain conditions will have to be met:
- You will have to appear before the notary,
- In the event of default, the bank can sell the property in order to recover its money.
- You are required to take out a balance insurance policy.
The mortgage loan is more tax- efficient as long as you have not yet reached the permitted ceiling.
Choose a mortgage loan sooner if you want to borrow large amounts over a longer term. The benefit of a more interesting interest rate will then outweigh the incidental costs (notary fees, insurance, registration of the mortgage, etc.)
A renovation loan is much more flexible: there are neither notary fees nor a mortgage registration, and the outstanding balance insurance is not compulsory. The interest rates will be considerably higher, and you will not be able to enjoy a tax benefit either. The term of such an installment loan is usually a maximum of 10 years and depends on the loan amount.
Choose a renovation loan sooner if you want to borrow a smaller amount and pay off more quickly.
What can you do if you are not the owner of your home?
The renovation loan is reserved for a home that you own. If you want to do minor renovation work in an apartment or house that you rent, opt for an interior loan sooner.
Apply for a renovation loan online? A child’s play!
Nothing is easier than applying for a renovation loan online. Applying for a renovation loan is not only simple, but usually you can also obtain more interesting conditions.
How does such a request work?
- Determine the amount to borrow.
- Perform an online simulation and request your quote
- An agreement in principle usually follows quickly: you will then receive the contract in your bus.
- You return a signed copy by post and not long after that you will receive the money to pay your invoices or materials.