Are you thinking about renovating your home? Do you want to renovate the kitchen or change the bathrooms or bedrooms? Surely if this idea has crossed your mind you already know that a reform requires a significant investment. But you’ll be glad to know that there is a loan for housing reform , a specific product that is increasingly used.
Many times home renovations are totally necessary and indispensable, they do not respond to a mere whim. But you may not have financial solvency to carry out the changes you need. If this is your case, be prepared to learn more about the loans for housing reform and all its peculiarities.
How can I finance the reform of my home?
You have several alternatives:
- You can save until you get the amount you need.
- Apply for a mini loan if the cost is not very high.
- Request a loan for reforms.
- Expand the mortgage.
Why can I need a loan to make a reform?
There are many reasons why you may need to make changes at home:
- To expand the space.
- To rehabilitate the facilities that are affected by the passage of time: the electrical installation, the plumbing, remodel the facade, etc.
- To improve the energy efficiency of the house and achieve long-term savings.
- To revalue the house for sale or rent.
- To perform totally necessary repairs such as roof waterproofing.
Are there grants and subsidies to reform a home?
It is common for Public Administrations at local, regional and even state level to offer rehabilitation aids . The best thing is that when asking for your budget, consult this topic with the company that is going to do the work, professionals are usually well informed about these issues.
Obtaining a subsidy can mean significant savings when facing the reform of a home or its facilities.
How do credits for home renovations work? How much can they cost?
The home renovation loan can work as a personal loan , so you are going to answer the amount due with your present and future assets. But it can also be a home equity loan , in which it will be our home that will operate as a guarantee of the return.
It is true that in the second case we are putting our house at risk if we cannot return the money, but by offering this guarantee we can ensure that the amount lent to us by the bank is greater and that the return period is also wider.
In terms of cost, interest is usually between 5% and 10% TIN in both cases. In addition, if it is a loan with a mortgage guarantee, the corresponding notarial and management expenses must be paid.
Other expenses to add to the financing of the works
Making a home renovation is never simple. To the amount of the work you must add other associated costs such as the fee to obtain the license of works, the fee for installation of container on public roads and the Tax of Constructions Facilities and Works (ICIO).
Having these extra expenses in mind is essential so that you can calculate well what the reform will really cost you, so that you do not find that after requesting a loan to reform housing you do not have enough capital.
Other alternatives to cover a work
Loans for housing reform are very useful so you can get your home to be just as you imagine it. However, there are other ways to finance this type of works.
The best option is to opt for financial planning and prepare a savings plan that suits your needs. Thus, you can carry out the reform without the need for external financing or by greatly reducing the amount you have to request . If you need it, do not hesitate to put yourself in the hands of an expert to help you manage your finances.