Surely you are many, those with the arrival of good weather are thinking of giving a hand of paint to the house, buy new furniture and even change the floor…. That is, take advantage of the heat to make renovations at home.
But depending on the type of works in the house, they can be an important expense. The problem is not only the total amount, but in most cases you have to pay for the works in cash.
So sometimes it is convenient to resort to loans to make reforms in housing, a specific type of personal loan to finance works.
Since there are currently few mortgage loans to finance reforms in the home, therefore, the ideal is to use a personal loan or bank products designed exclusively to pay for housing works.
Characteristics of home renovation loans
Its general characteristics are similar to those of consumer loans. In fact, the requirements to get loans to reform homes are very similar to those for personal loans.
Although most are fixed rate loans with an annual starting interest between 5.25% and 7.75%. As for the maximum amount of financing, it usually does not exceed € 60000 and the repayment period ranges between five and eight years.
Types of loans for housing reforms
At the time of requesting a loan to do works at home, we can choose among the following:
- Reform Loan: from Crediter and with a fixed interest rate of at least 5.25%, and no opening fees. This loan finances from 3000 to 60000 euros to pay in monthly installments for a maximum period of five years.
- Home Loan: available in several entities. This loan for reforms offers an interest rate of 6.25% per year plus an opening fee of 1.50% on the amount granted and with a minimum of 100 euros. To obtain the best conditions in the interest rate of this loan, a certain link with the financial institution is necessary. What it means to contract products and services such as domicile a payroll and two household receipts, and make purchases with a credit card, worth more than 1500 euros per year.
- Home loan db: from the Jabank and with a fixed annual interest of 7.75%, with a bonus of 0.50% from the second year. It also has an opening commission of 1% with a minimum of 60 euros. As for the relationship with the bank, this loan requires the payroll to be domiciled and to hire two insurances, one to protect payments in case of unemployment and the other in case of death of the owner.
Anyway if you want to find the best financing to reform and update your home, a good solution to save time and money after consulting our comparative personal loans. Where are the best loans for home renovations, both from banks and financial institutions.