Which credit application for the home renovation is the best solution? There are various options for achieving this. Another mortgage or a revolving credit or a personal loan that you can take out more easily than a mortgage. For the mortgage, you have to go to the notary, which in turn entails a lot of extra costs.
Apply for credit for home renovation
You have several options for renovating your house, but which option is the most suitable? Another question that needs to be answered is whether you want to deduct the interest to be paid for the tax on your income. If this is the case then your credit must necessarily be on annuity basis, so the revolving credit for the credit where you want to deduct the interest.
A personal loan is an annuity-based loan, this means that you pay a fixed amount for a fixed period, the personal loan is suitable for that. The advantage is that you do not have to go to the notary and therefore do not have to incur a lot of extra costs. A disadvantage is that the term is shorter than with a mortgage, where a mortgage can quietly have a term of 20 years, you have to take into account a maximum of around 5 years for the personal loan.
taking out a mortgage for renovationYou can repay the borrowed amount from your house over a long time, this means that the monthly amount will be very low, this will ensure that you have sufficient finances and do not get into trouble. It depends on your income what is best for you. Sometimes it can also have more benefits to opt for the personal loan.
Mortgage interest continues to fall
Good news if you choose the mortgage, because the interest keeps falling, if you use the mortgage for the renovation of your house smartly then you can get away with very low interest. If, for example, you now take a fixed-rate period of 10 years, then you will be assured of a super low-interest rate for no less than 10 years. With a personal loan you, unfortunately, do not have this choice.