You own and want to do work in your home by subscribing a consumer credit? Find out what features of loan work goes through a broker. f-bod.com has more information
Nearly 77% of homeowners have been renovating their main home in the last 5 years. Among them, more than a quarter funded them by using the credit works, according to a CSA study and Franfinance published in June 2018. How does the work loan? What are the benefits to going through a broker? Explanations.
Why subscribe a credit works?
The loan work is usually issued by a bank or credit institution to help the borrower finance its work. These can be undertaken to achieve energy savings, to increase the heritage value of a property, to have a more comfortable or modern home, renovate elements that are no longer standard or to benefit from tax cuts.
To finance works, several solutions are available to the borrower:
- Personal loan: this type of credit is repayable over a period of between 3 months and 10 years. The subscriber is not obliged to justify his expenses.
- The loan allocated: it is a consumer credit, the amount of which can only be spent on carrying out work. The bank will want to ensure that this condition is met by requesting quotes and invoices issued by the company that the borrower has used to perform the work.
- The mortgage loan: it is also possible to use mortgage loans to finance renovation works. In this case, the lender will ask for a guarantee (surety, mortgage, lien from lender of denier) and the subscription of a death-disability insurance.
Works: what type of credit to subscribe?
The choice of the type of loan depends on the nature and amount of the work envisaged. For work under 75 000 USD, it may be wise to opt for a personal loan or an assigned loan. To subscribe, you just need to provide some proof (proof of identity, proof of address, last pay slips …). The release of funds can be done quickly.
If the cost of your work exceeds 75 000 USD, only a mortgage can help you finance them. Indeed, from this amount, banks are no longer allowed to offer an offer of consumer credit. This type of financing is subject to stricter grant conditions and the waiting period is longer.
Whatever your choice, the bank will systematically review your debt capacity. Lastly, it may require that the works be carried out by building companies, the expenses be justified and the capital borrowed be paid directly to the contractors in charge of the works.
Go through a broker to subscribe a credit works
The loan can be contracted from a bank, a credit institution, an aid agency or a broker. It is also possible to go to a major DIY brand that, through a partnership with a financial institution, can offer you a credit quote works.
It is strongly recommended to go through a broker to subscribe his credit work. This professional allows you to benefit from several advantages:
A loan works at the best rate
Choosing the right financing can save you a lot of money. The broker is responsible for finding you an offer at the best rate thanks to its wide network of partners.
A loan offer tailored work
Before starting your search, the broker defines your needs and takes into account your personal situation. Thanks to his many years of experience, he is able to offer you a work loan offer 100% personalized and corresponding to your budget.
The broker compares the offers of credit works to your place which frees you time. You can devote yourself entirely to your project.
A free approach
In general, this intermediary is remunerated by a commission paid by the bank when the offer of credit is accepted. In other words, using a broker does not cost you anything.
So you have every interest in going through a broker to find the best credit work. You can now start comparing offers online!