Whether you are the owner of a property, or you plan to become one, you will have, at one time or another, to carry out work within your accommodation. Refreshing the decoration, fitting out a kitchen or bathroom, insulation work, upgrading to electricity standards, complete renovation of your interior… All these projects can quickly represent significant sums that you will have to finance. To help you, it is possible to have recourse to a work loan.
What is a work loan?
As its name suggests, the work loan is a loan intended to finance the completion of work within its housing. If, in most cases, it is in the form of a consumer loan, it can also be directly integrated into a mortgage. The choice of credit to subscribe will depend in particular on the amount to borrow, the type of work to be carried out, and your situation (owner or future owner).
The different types of work loans
There are mainly 3 types of loans for the financing of works: the personal loan, the assigned loan, and the mortgage.
The personal loan is a particularly popular consumer credit, because it makes it possible to finance all types of projects, whether or not they report to works, and this, without providing proof. By borrowing more than the amount necessary to carry out your work, you will therefore be able to also finance all or part of related projects (purchase of a vehicle, travel, etc.).
Very flexible and available quickly, this credit is especially recommended if you want to do your work yourself. Its amount can range from 200 to 75,000 dollars, repayable over a period of 3 months to 10 years.
The affected loan
Like the personal loan, the assigned work loan belongs to the category of consumer loans. On the other hand, it is distinguished from it by the fact of having to obligatorily devote the sum borrowed to the works for which it was granted. You will therefore have to justify the amount you need by quotes or invoices.
If the rate of this credit is significantly higher than that of a personal loan, it is in private because the latter is more protective for the consumer. In fact, if your work is canceled or it does not comply with that provided for in the contract, the affected credit can be terminated.
Advised for the realization of works via professionals of the building, this credit can be used for the realization of all types of works, whether it is a simple paintwork or the complete renovation of your apartment. The amount that can be borrowed is the same as for a personal loan: from 200 to 75,000 dollars, with monthly payments over 3 months to 10 years.
A home loan can be taken out to finance the purchase of a property (and the renovation work related to this acquisition) as well as to carry out work within a property of which one is already the owner.
If the mortgage is dedicated to the performance of renovation works, the amount of your project must be greater than dollars 75,000 ( supporting documents), and you must guarantee your loan by a deposit or a mortgage, and subscribe death and disability insurance.
Available at a more advantageous rate than a consumer loan, mortgage can finance large work projects (complete or heavy renovation, home extension, etc.) and spread payments over a long period (up to 25 or 30). However, the conditions for obtaining such a loan are more stringent (stable employment, amount of income, debt ratio, etc.) and the period for granting can be relatively long.
You now have all the cards in hand to choose the type of work credit that suits you best, provided that it is granted to you by the lending institution.