You want to buy a home or do work in yours? You do not have the necessary funds? You will then have to take out a mortgage. The mortgage, also called mortgage, can come in different forms. It’s up to you to choose the one best suited to your needs and your wallet. We help you to see more clearly.
Get a credit for your real estate project as a personal loan with our work loan
A home equity loan often translates into a personal loan that allows an individual to obtain the amount of money needed to undertake construction or buy a new home. The mortgage is a loan granted by a bank or financial institution.
In the case of a personal loan, the duration of the credit is according to the repayment capacity of the borrower but especially according to the type of project to be financed.
When it comes to mortgage lending, it’s usually a multi-year loan. The rate, meanwhile, can be fixed or variable, depending on the offer of the body that offers credit but also the choice of the borrower.
As for the amount paid to the borrower, it depends on what was agreed during the interview with the bank. Generally, a personal loan is intended to finance a portion of a project that a borrower can not pay with its own funds. The bank therefore calculates the remaining amount needed to undertake the entire project.
This is also the case of real estate credit which allows the borrower to obtain the amount of money needed to pay the costs of the work, which he can not pay with his own savings.
However, it is also possible to obtain a work loan to finance the entire work or an acquisition, even without personal contribution. The mortgage can be linked to a personal contribution or paid to the borrower even without contribution. As for reimbursement, the principle is the same as that of other types of personal credit: each month, the borrower is required to pay the amount of the monthly payment agreed in advance with the credit agency.
Real estate credit: the advantages it presents
Depending on the credit institution chosen, it is possible to obtain financing for its real estate project without having to justify in detail the use of the credit. In other words, if you subscribe to a personal loan to carry out construction or renovation work, you will not necessarily have to submit to the bank bills for the purchase of materials. In addition with the personal loan, the funds to start the work will be released as soon as the subscription to the loan is validated.
With a work loan, the overall effective rate is also generally reduced. To reduce the cost of your loan, you can even choose a bank that does not require death and disability insurance to guarantee the repayment of your credit. The best way to know the conditions of each organization is to simulate your loan online.
Types of credit available to finance a real estate project
Financial institutions and banks now offer individuals greater freedom to subscribe to the credit offer that best suits their needs. In the case of a renovation or maintenance project, the borrower can subscribe to a home improvement loan or a special renovation credit.
For work that does not require a large amount, the bank can direct the borrower towards a credit in the form of consumer credit. There are also other forms of credit designed for specific jobs, such as lending works insulation.