Every owner must from time to time do work in his home. Subscribe a work loan can be a good solution to help you finance these renovations. This article explains the essentials to know on the subject.
What loan for renovation work?
There are several ways to finance work.
There are two types of credits:
- Mortgage credit : relatively long to obtain, it will require your patience and will incur a certain number of costs before releasing the funds. For example, a notarial act is required. It is generally used to buy housing rather than a simple renovation
- The work loan : more suitable for the work of the house, the “work loan” or “renovation credit” can be obtained within 24 hours. You will be asked for a simple proof (quote) for its installation. Funds are released very quickly (24 hours after signing the credit contract)
A work credit can be set up as part of a future resale of a property, an extension of your accommodation or as part of a loan for energy renovation works. Think about it!
Conditions for acquiring a loan for renovation work
Acquiring a work loan requires you to own the property to be renovated. However, if you wish to plan work (or an extension) as a tenant, this is possible by means of a personal loan.
Please always obtain written authorization from the owner of the premises by means of a registered letter. This written confirmation is very important because it protects you. In the absence of this, the owner can end your rental contract and ask you to return the accommodation as it is (before work).
The work loan requires you to go through a building professional. If you feel like a do-it-yourselfer and looking to acquire equipment to do the work yourself in your home, then you will have to go through a personal loan.
What documents must be provided for a work loan?
Building a file for the request for a renovation credit will require the following supporting documents:
- The identity card (s) of the borrower (s)
- The bank card where the funds will be paid
- Detailed quotes for planned work
- The last 3 pay slips for employees
- The last warning extract from the tax roll received for the self-employed
- The last bank statement received for the following income: unemployment benefits, work accident pension, mutual fund income,…
- The warning extracted from the roll received from the property tax ( source )
Amount and duration of credit
It is imperative to have the amounts validated by your institution before starting work. You must bring the invoices or quotes issued by the contractor (or the architect) in order to agree on a loan amount.
Each bank has its prerogatives regarding the amount of the renovation credit and the repayment period (ranging from 6 to 120 months).
Do not hesitate to consult our work ready simulator to make a request quickly.
Types of work for my renovation
Whether it is minor work such as renovating your toilet, changing a bathtub or a more substantial development such as adding living rooms, work loan is undoubtedly the best way to borrow money. money in Belgium.