Integrate the cost of the work into a mortgage
When buying a home, house or apartment, is it possible to include the cost of any work in the mortgage? Is it relevant? What are the advantages and disadvantages of this solution?
Include the work budget in a mortgage
Including the work budget in the mortgage that you have contracted is quite feasible. The advantage: you benefit from the interest rate of the mortgage loan, and you avoid accumulating several credits. You also benefit from the very long repayment term on home loans.
In practice, however, this practice has limits, for two main reasons:
- The total amount borrowed for the purchase of the property + the work must remain within your repayment capacities. Indeed, the total cost of the work can have a certain cost, especially if it is about heavy renovations.
- It is also possible that the financial institution requests supporting documents such as quotes from the companies carrying out the work, etc. It may then be that the bank pays the company directly, which does not leave you free to manage the payment of craftsmen, companies, etc.
Cumulate personal work loan and real estate loan
The main advantage of accumulating a personal work loan in addition to the mortgage loan: you remain in control of what you want to finance.
The Finance Studio personal work loan being an unallocated loan, the funds granted are transferred to your bank account, and you are free to use these funds at your convenience: purchase of materials, services, etc.
Another advantage of not including the work budget in the home loan: depending on the nature of your work, you may be entitled to aid for work encouraging the energy transition. Find out if you are eligible for this financial aid.