The renovation loan guide is there to help you! You will discover everything you need to know to make a work loan or an energy credit in the best conditions. We will explain the whole procedure to you. Ready? Let’s go!
Works loan or renovation credit?
You are probably wondering what is the difference between these two types of loan?
- If – 50% of the amount borrowed for renovation work is work to save energy we call it work loan
- If more than 50% of the amount borrowed for renovation work is work to save energy, we call it energy credit
Imagine that you borrow 20,000 dollars, you plan 9,000 dollars to place photovoltaic panels and 11,000 dollars to place a fence around your garden. As – 50% of the planned works are works to save energy, we are talking about a work loan.
Conversely, if 11,000 dollars are planned to place the photovoltaic panels and 9,000 dollars to complete your fence, in this case, you can benefit from an energy credit.
What about personal work?
Unfortunately, you cannot take out a renovation loan to carry out the work yourself. You must go through contractors. If you still want to do the work, you will need to take out a personal loan.
Renovation loan with or without mortgage?
Without hesitation, we advise you to take out a renovation loan in the form of an installment loan.
- You do not pay notary fees
- No booking fees
- You receive the total amount borrowed from your account
- You must have the work done by contractors
However, you might consider doing some personal work with the amount requested. Indeed, 20% of the amount requested must not be justified. This percentage can be used, among other things, for personal work. The percentage accepted depends on each organization, read the conditions of each organization consulted.
You no longer have any interest in taking out a renovation loan in the form of a mortgage because it is no longer tax deductible.