If you want to renovate your home partially or completely, you do not always have to take out a renovation loan. It is perfectly possible to use your current mortgage loan to finance your renovation. Although it is only possible to use a mortgage loan for renovations if the relevant mortgage loan has already been partially paid off.
Renovators can re-borrow the part of the capital (not the interest) that they have already paid off.
Mortgage loan for renovation is tax-deductible
A mortgage loan for renovations has a number of advantages over the traditional renovation loan. First of all, the amount withdrawn can be used to enjoy a tax benefit. That is perfectly possible because this is a mortgage loan. For example, it may be possible to extend the repayment period in order to enjoy the tax benefit for longer. The amount of credit that the borrower can borrow does indeed depend on his repayment capacity.
The borrowers do not have to apply for a mortgage again for renovations. This means that they do not have to pay any new notary fees. The lenders can, however, charge a file fee again. This is not the case, for example, with a normal renovation loan or a green loan.
Using a mortgage loan to finance a renovation is especially interesting if the financing is accompanied by a substantial price tag. Some Bennet families put forward a minimum amount of $ 7,500. That is because the loan is spread over a longer period. With a regular installment loan, such as a renovation loan, shorter repayment terms usually apply. These installments depend on the amount borrowed. In addition, with a renovation loan it is possible to borrow smaller amounts.
Looking for the best loan formula for your renovation? On our site, you can shine your light on all mortgage loans (for renovations), renovation loans and green loans. This way you know perfectly which loan formula meets your financing needs.
Looking for another installment loan? Then be sure to compare the personal loans and the merging of loans on our site.
Concrete example: The fixed annual cost percentage (APR): 2.20%, for an installment loan of $ 155,000 with a term of 25 years. The monthly repayment will be $ 670.50 for a total repayable amount of $ 201,149.53. The fixed annual percentage rate of charge may vary depending on the amount of credit, the duration of the credit contract, the withdrawal modalities or the chosen payment modalities. A mortgage loan for private individuals, subject to acceptance of your file and mutual agreement. Interest rates and product conditions change regularly. Because reliable comparisons are only possible on the basis of current data, the product information (such as interest data) that we provide is often updated daily, or as often as necessary. Belgian family is neither a credit broker nor a lender.