It has been years that you want to undertake work or carry out a home extension? Or do you buy a home with great potential, but which requires work, more or less important? So you may be thinking about home improvement loan. But what exactly? What are the conditions? How do you know my limits? What are the options?
What is the renovation loan?
A renovation is a form of a personal loan to staff. Such loan will allow you to undertake work in your home, whether for resale, a higher value, an expansion, a home extension, or just a refresh. In this way, you avoid touching your savings and directly dispose of the amount necessary for this investment. You then repay the amount borrowed at your own pace, in agreement with the chosen bank and according to your financial capacities.
Who can request it?
To be able to borrow money for work or renovations on real estate, you must unequivocally own it. If you are a tenant, however, you can use a personal loan, but you must have the authorization (written and by registered letter) of your landlord. Otherwise, the latter may, at the end of your lease, ask you to return the property in its condition on your arrival.
What are the mandatory documents to provide to renovate your home?
To obtain a loan for your work or renovations, you will need to submit various documents to the financial institution. Among them, you will find:
- the sale agreement in case of purchase of the property to be renovated;
- the copy of your identity card;
- town planning permits, if necessary (all types of work do not necessarily require this type of authorization);
- tax returns for the last two years;
- the specifications of the work to be done;
- your current salary sheets (or invoices if you are self-employed)
- The expertise of the real estate concerned.
How much and how long can I borrow?
To be able to subscribe to a work loan and thus renovate your home, you must, therefore, provide your bank with proof. This can be in the form of invoices or quotes given by the architect or contractors you use. The reason this step is important is that without it, you will not receive the requested funds. The financial institution must ensure that the money you are asking for is intended to finance renovations.
The minimum and maximum amounts vary by bank. More generally, it ranges from $ 1,200 to $100,000). The repayment period also varies between 6 months and 120 months
To find out if your finances can handle a renovation loan, check with your mortgage and accounting professionals today!