Before embarking on a request for a renovation loan to carry out work or renovations, we invite you to read some information below.
Focus on the works loan, renovation loan
Carrying out work in a dwelling generally involves considerable expenditure. Most people today opt for a work loan because they do not have the funds to carry out these renovations. The guide below gives you relevant information that can help you if you are looking for this type of financing.
Which renovation loan to choose?
Several options are available to the owner who wishes to obtain financing.
The construction loan, renovation loan offered by a bank
The first alternative is to refer to a bank. This generally offers a loan ceiling of around 21,500 dollars. Depending on the contract, the borrower will have between 7 and 8 years to repay the amount borrowed. Very often, the interest rate offered by the financial institution varies between 4.5% and 9%. Note however that you can choose between a fixed rate and a variable rate. In the first case, the rate defined when signing the contract will remain unchanged until the end. In the second case, however, the rate is subject to change each year.
Either way, remember that a loan will commit you for a few years. Don’t go headlong. Take the time to carefully analyze several offers before submitting your work or renovation loan request to a bank.
The zero rate loan and the eco loan for works
The zero-rate loan is an offer exclusively for homeowners who want to carry out work in a new home. Its operation is simple: the State pays the interest rate. This concept has been designed to guarantee the increase in the number of homeowners in the country. Its implementation began on 1 January 2011.
The zero-rate eco loan is mainly intended for people who own a home built before January 1990. It aims to encourage owners to improve their energy performance. By opting for this type of loan, you will benefit from financing without interest rate and you will have up to ten years to repay it.
The construction loan, renovation loan granted by the National Housing Agency
This type of home improvement loan is ideal if the homeowner wants to improve the sanitation of his home. It can also be used to optimize insulation, to replace materials that contain asbestos or to fight against termites and various insects that can cause damage in the home. In addition, the aim of this association is to reduce as much as possible the dwellings which can involve risks for the health of its residents. The work to be carried out must be carried out by building experts. Unless you have a low income, you will need to borrow at least 1,500 dollars. Consequently, you will of course have to provide the documents that will be requested of you (deed of ownership, plans of the work, etc.).