Understanding the Home Improvement Loan Simulation Belgium
Renovations can be expensive, but they can easily be financed through a loan. Discover everything about the home improvement loan simulation Belgium before you start your project.
Home Improvement Loan Simulation Belgium
Everything You Need to Know About the Home Improvement Loan Simulation Belgium
Renovation is a crucial step to increase the value of a house you wish to sell or rent. It’s also a guarantee of comfort and well-being, whether in your primary or secondary residence. Naturally, renovations come at a cost, but by comparing different loan offers, you can easily choose the right financing option.
A loan, two options
The term “home improvement loan” offers you the choice between a mortgage and a renovation loan.
The mortgage provides a relatively low interest rate and is advantageous if you wish to borrow a large amount (€50,000 and above). The process is quite involved and may include additional costs, such as notary fees and credit deed fees.
However, you can use an existing mortgage. If you determine that the repaid amount is sufficient (or exceeds) the cost of your renovations, you have the option to restructure the credit without going through a notary. The bank will provide you with the required amount, within the limits of the mortgaged property’s value.
The renovation loan is less restrictive, as it involves no additional fees or collateral requirements. The main condition is to present estimates established by building professionals. The bank or lending institution reviews these estimates to grant you the requested loan.
In both cases, consider using a home improvement loan simulation Belgium. This allows you to compare different offers, taking into account the Annual Percentage Rate (APR), proposed repayment periods, and other critical factors.
What Can You Finance with the Home Improvement Loan?
This loan can finance your renovation work, but you need to know which projects qualify. In reality, any operation aimed at renovating your home is eligible. This includes purchasing materials, as well as paying service providers. Specifically, your loan can help you:
- Redo your electrical work and/or plumbing
- Build a swimming pool
- Develop a terrace, balcony, or veranda
- Replace floor and wall coverings
- Renovate woodwork
- Replace carpentry
- Construct and develop additional rooms
- etc.
