Take advantage of a loan to renovate my home

renovation credit

As a homeowner, you know that jobs big and small will always be part of the package. Admittedly, this represents a cost which turns out to be considerable all the same. The best solution ? Take out a renovation loan. It's simple, attractive and efficient.

Swiss buildings have major energy renovation needs

For the renovation of owned accommodation, many homeowners have chosen the renovation loan. This method of financing simplifies the realization of small and large works while prioritizing priorities. You will no longer have to "tighten the belt" to renovate and modernize the bathroom or wait until next year to bring your heating and insulation system up to standard. So restore your home more easily with work. You are thus rectifying the situation in terms of imperfections or deficiencies in the energy efficiency of your home.

A study carried out by the Swiss Society of Entrepreneurs gave the following estimate in terms of buildings in need of repair: There are no less than 1.5 million, which have deficiencies in energy, insulation and comfort. To renovate your home, consider taking out a renovation loan. Calculate the costs incurred by your loan and quickly obtain the funds that will allow you to carry out your work.

Obtain a private loan for its renovation in favor of a mortgage loan

Why do you need a renovation loan? Do you have a roof to replace, facades to refresh, wallpaper to install, sanitary facilities to modernize or even walls to insulate? A renovation loan will allow you to comfortably carry out your projects. This is thanks to cost control given that you will have the choice and the possibility to better select your provider.

Private credit represents a much faster and more advantageous solution than a mortgage solution. Of course, the mortgage loan can be used to finance the purchase of real estate as well as to cover important works. However, consumer credit remains more useful for small amounts of work.

To undertake the necessary renovations to your home, obtain a private loan using our calculator and simulate your refund online for free. You will be able to determine from the start which monthly payments are in line with your financial situation. Do not hesitate to ask us to ask us for a comparison and obtain all the important information before you embark on your renovation loan project.

The conditions for obtaining a renovation loan

The conditions for granting a renovation loan are much less restrictive than if it were a mortgage loan. However, you will always have to justify a small file to benefit from your financing. The conditions remain the same, whether it is a primary, secondary or rental property. Here is the list of the first documents to collect:

  • Une copie de votre pièce d’identité
  • Your last three salary statements
  • A copy of your mortgage contract

Avant même de réunir vos documents, vous pouvez déjà effectuer une demande sans engagement à l’aide du bouton suivant :

When should you choose a mortgage loan rather than a private renovation loan?

Lors de l’achat d’un bien en Suisse, profiter d’un prêt hypothécaire semble plus approprié. Pour les biens immobiliers qui se situeraient à l’étranger et qui coûteraient moins de 250’000.-, le crédit personnel restera cependant une excellente solution. Vous devrez également plutôt vous orienter sur un crédit hypothécaire si vos travaux sont importants et qu’une somme supérieure à 100’000.- doit être déboursée pour effectuer ceux-ci.

Cependant, lors d’une demande d’un renovation mortgage loan you will have to present the estimates of the work to be carried out to your banking establishment in order to obtain a validation. Then, you will represent your invoices at the same establishment for payment. In general, the bank that will accept your mortgage financing will ask you for a contribution of 20 % of the amount of the work.

What if the work to be done occurs after the purchase of the property?

In this case, the procedure will be a little more complex, since you will have to take certain steps. You will first have to demonstrate to your bank how carrying out this work will add value to your property. Then, you may need to go back to a notary to create or increase the mortgage certificate.

Note that this will generate more or less substantial costs. Be careful, your file will be refused if your mortgage loan has already reached its limit. So think about a renovation loan or consumer credit if the request for work does not come within the framework of the purchase of real estate. This method of financing is more flexible, simpler, less expensive and requires almost no proof.

The rates applied and the repayment period of the renovation loan

Depending on the bank, the private loan renovation credit rates range from 3.9% to 9%. It is certain that in comparison, mortgage rates varying between 1% and 2% depending on the bank and the length of the loan. They are therefore lower than those of private credit. To consider whether it's really worthwhile or not, you'll need to look at the duration and your budget. In fact, the repayment of a mortgage loan can be spread over many - even decades - of years. Some borrowers even have it for a lifetime.

The private renovation loan generally caps the duration of the loan at a maximum of 84 months. However, it depends on the selected financial institution. Some will be able to make some exceptions, others will be adamant. You also have the option of renegotiating the rate during a private loan, depending on your projects and the duration of the loan. When you calculate for the long term, private credit will have cost you less with interest, since the repayment period is shorter.

Bet on a renovation loan to finance small works

Vous l’aurez donc compris : nombreux sont les avantages d’opter pour un crédit de rénovation plutôt que d’augmenter son hypothèque. En effet, dans ce second cas, les obstacles peuvent très vite décourager le propriétaire, notamment lorsque ce dernier demande un montant peu élevé. Pour une rénovation concernant l’augmentation de la valeur d’un bien immobilier, à hauteur de 20’000 francs par exemple, il est rare qu’une augmentation d’hypothèque soit accordée. Les banques ne se montrent plus coopératives que lorsque le montant demandé atteint les 100’000 francs ou plus.

In terms of renovation credit, the owners of their home generally enjoy special conditions to finance their more or less important work, especially if it is their main residence. In addition, interest rates can be negotiated and are generally at a reasonable level in relation to the borrower's needs and repayment capacity.

Insurance and guarantees that will protect your private credit

Optez pour un établissement bancaire qui soit en mesure de vous faire profiter d’un paquet de sécurité complet, englobant une garantie des mensualités incluse en cas de décès, de chômage ou d’invalidité. Pour encore plus de sécurité, n’hésitez donc pas à souscrire à une assurance des mensualités. Ce type d’assurance a pour but de garantir le remboursement des intérêts et des mensualités si un cas de chômage involontaire venait à se produire, ou si vous deviez vous retrouver en incapacité de gain. Si un éventuel sinistre venait à se produire, le preneur de crédit de rénovation pourrait prendre une pause entre les versements de ses mensualités, toujours sous conditions bien évidemment.

In conclusion, mortgage or private renovation loan?

Let's say that the 2 are equal and that it is really a question of studying well what is best for you. Note, however, that it is preferable to switch to a mortgage when it comes to financing the work as part of a real estate purchase. But that it becomes much less interesting when the good in question is already your property. Whichever you choose, take the time to calculate the interest over the repayment term and compare the results, as this could tip the scales. In the end, you will find that the cheapest and easiest solution is the renovation loan.

Maintenant que vous connaissez les avantages de crédit de rénovation, il ne vous reste plus qu’à faire votre demande. Avec Lica c’est simple, rapide et efficace ! Et oui, vous faites votre demande en ligne en moins de 2 minutes et ensuite nos équipes spécialisées se chargent de faire le travail pour vous. Vous économisez ainsi du temps et de l’argent ! Pour effectuer une demande de crédit sans engagement, il vous suffit de cliquer sur le bouton suivant :

Do you have questions before making your request? Our advisers are there to answer your questions 7 days a week. Ask us for more information and we will be happy to answer you.

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