We are in a position to wonder whether it is possible to merge a Work Loan into a Real Estate Loan, especially when acquiring a property that needs to be renovated or when the borrower wishes to make major adjustments after the renovation. purchase of real estate.
A mortgage can take into account a work loan
As a rule, subscribe to a mortgage that takes into account the purchase of real estate and the amount of work is possible. This way of doing even generates significant benefits for a borrower:
- A longer repayment period
- A more interesting interest rate for your mortgage
- Your home loan does not accumulate with your loan works
However, this is not as easy as it sounds. Banks pay attention to the total amount that is requested, ie the acquisition of the real estate and the work that will be done, the loan must remain within the limits of reasonable, ie in the capacities of indebtedness of the borrower. This means that the deadlines must not exceed 1/3 of the monthly income available.
The bank will ask you besides that the quotes of the companies for your works are transmitted to them so that it pays directly the company. It is therefore not possible to carry out the work and transformations in your home.
Putting the cost of the work in your home loan is possible, but it is a targeted operation for expensive and important renovations that are made by professional companies.
A loan works in addition to a mortgage
In case the work you want to do in your home is not as expensive or complex, taking a Loan Works will be more interesting. A Work Loan allows you to get money directly into your bank account. You have the possibility to manage it as you wish in the financing of materials, equipment or services.
Of course, you need to pay attention to what your monthly disposable income allows you to repay your work loan and your home loan.