To finance the renovation of your property, you can choose from various credit options. Look in particular at the nature of the works, the amount you wish to borrow and the duration of the loan to determine your ideal credit formula.
The name of this credit formula already indicates that it is intended for modification or renovation work on real estate. The duration depends on the amount borrowed and amounts to a maximum of 120 months.
This is a flexible installment loan that is granted faster and easier than a mortgage loan, with minimal administration costs. The bank does not ask you for a guarantee, but you must justify part of the borrowed amount on the basis of invoices or a signed order form. The interest rates are usually somewhat higher than with a mortgage loan (that is simply the price that you have to pay for more flexibility), but considerably lower than with a traditional installment loan.
The mortgage loan
This type of loan involves larger amounts and a longer repayment term, for example for a very thorough renovation, renovation or extension of your home. This is the formula that offers you the lowest interest rates. But also take into account the costs for the notary and the mortgage deed, the debt balance insurance and less flexibility.
Re-admission of mortgage loan
Suppose that you took out a mortgage loan for the property in question years ago and that you have therefore already repaid part of that loan. It is then often possible to do a so-called ‘readmission’ within the same loan. In other words: you borrow the part of the capital that you have already repaid, in full or in part. Advantage: you do not have to take out a new loan, so you avoid notary and management costs. Disadvantage: the operation is only possible at the bank that granted you the original loan.
Good to know: If you take out a loan now, you will undoubtedly enjoy a more favorable interest rate than when you took out your mortgage loan years ago. After all, interest rates can hardly be lower at the moment. Perhaps the time is right to refinance your entire mortgage loan at a lower interest rate, including the amount you need for your renovation.
Energy or eco credit
If the works you have carried out are meant to save energy, this formula offers you more interesting conditions. In exchange, you will have to reinvest the majority of the borrowed amount (your invoices serve as proof) in a new condensing boiler, a solar boiler, new windows, thermostatic valves, solar panels, a green roof, etc.
Installment loan, subject to acceptance of your file.