Home renovation loans are designed for anyone looking to undertake construction, renovation, or any type of real estate-related project. It is a type of loan granted by a specific entity, typically a bank or financial institution, at variable rates with diverse repayment amounts depending on the circumstances of the loan. Various home renovation loan options may be available to you. Home Renovation Loans Explained:
One Project, One Loan: Understanding Home Renovation Loans
There are several types of home renovation loans, essentially matching the variety of projects one might undertake. For instance, you might find renovation loans for minor repairs in an apartment or house or loans dedicated to partial or full new construction projects. Each case and its conditions are unique.
Typically, a personal loan is characterized by an annual percentage rate determined by the total borrowed amount and the repayment duration selected. To choose the ideal loan, consider these variables before consulting your bank for professional guidance.
Personal Loan or Dedicated Loan?
When choosing a home renovation loan, you must specify the purpose of the borrowed funds. This way, you benefit from a right of withdrawal and protection linked to dedicated credit.
For significant projects exceeding €20,001, a borrower can enjoy a repayment term of up to 10 years.
A dedicated home renovation loan is tailored for specific projects and requires the completion of a justification dossier. It can be canceled without charge if the project isn’t successful. The loan offer may be declined, and the work might not proceed. Generally, this type of loan offers the borrower a more advantageous and lower interest rate than a consumer credit.
A personal loan, on the other hand, is granted to the borrower without the obligation to justify its use. However, the home renovation loan offer cannot be annulled if a sale is canceled and must be fully repaid.
Sustainable Development Loan
Any property owner wishing to carry out eco-friendly projects can opt for a sustainable development loan or eco loan.
However, this type of loan requires meeting very strict eligibility criteria. It is only applicable to eco-responsible projects and can be granted solely for properties older than 2 years. Consequently, only industry professionals are authorized to perform the required work.
Simulate Your Home Renovation Loan
Credafin offers you the opportunity to simulate your home renovation loan online using their simulator. This tool is not only simple and intuitive but also completely free and without obligation.
