Borrowing for a renovation: Do’s and Don’ts

Chances are that your home is your most valuable asset. It goes without saying that you want to live in it as long as possible, and in complete comfort. To ensure this, renovations and renovations are necessary from time to time. But how do you finance a major renovation? With a loan? That is perfect! There are then some do’s and don’ts to take into account.

Do: a precise cost estimate

Do: a precise cost estimate

Whether you start work yourself or engage a contractor, a renovation will quickly cost you a hefty penny. Certainly when breaking work is involved, the costs quickly increase.

Moreover, renovations and renovations have the annoying tendency to become more and more expensive: you start limited, but suddenly there are other places in the house that start to show defects. That is precisely why it is crucial to estimate the costs in advance. Only in this way can you take out the most advantageous loan.

Don’t: a payment period that is too short or too long

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Loans for renovations and renovations usually have a duration of a few months up to a few years. A long term ensures lower installments, although you end up paying more interest. A shorter duration costs you less, but is not always feasible.

Do: compare

Do: compare

The following applies to all loans: comparing pays off . Don’t just go to your current bank, but compare the proposals from multiple banks.

Don’t: just start renovating

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Borrowing for a renovation is relatively easy. You do not have to go to the notary and you do not need a mortgage. All you need is a proof of investment , such as a signed invoice, a quote or a quote. Bear in mind that the payment of the loaned amount only takes place when the bank has received all necessary documents, including the investment receipt.

Do: take out a balance insurance policy

Do: take out a balance insurance policy

When your income suddenly falls out due to illness or death, even a small loan can put too much financial pressure on your family. You can protect your family against this with a debt balance insurance. Do you already have such insurance? Then you can have it adjusted as soon as you start the renovation work.

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