Home Renovation Mortgage Loan: how it works, the best and what documents are needed
Renovating your home implies a sometimes significant expense, to better cope with it there are different types of mortgage available to everyone that will allow you to have the necessary amount with a loan.
To apply for a mortgage in order to renovate your home, you can request the support of the ‘ Guarantee Fund ‘. This is an economic coverage that helps those who want to carry out interventions in their home to improve some important and necessary aspects.
This financing allows to cover the interventions on the buildings, the first thing to do is to understand if the house needs an ordinary renovation then small repairs or works, extraordinary renovation with more important interventions and therefore ask for the mortgage by presenting the documentation.
The law of 2013 establishes a fund that helps people to carry out work in their home, if we talk about a first home, this is active and can be requested for loans that do not exceed 250 thousand USD available for families, singles and weak realities who have priority. In addition to this fund, many tax concessions are available for 2018 such as those for energy requalification.
For free construction works we mean those aimed at modifying parts of the house that do not require permits and can access tax breaks such as the full replacement of shutters and window frames (The deduction is 65% up to 96 thousand USD of expenditure then 50%) the replacement of the railings or similar structures (In this case the concession is 50% up to 96 thousand USD), the installation of heat pumps (65% of the total expenditure), garden work including embellishment such as gazebos, fountains, closets (the deduction in this case is 36% on a maximum expenditure of 5 thousand USD).
How to choose the best mortgage
Before applying for a mortgage it is good to consider a number of factors, the rate and the taeg are fundamental . A mortgage should have an APR between 0.78% and 0.83% to be optimal if a variable rate is chosen, in the case of a fixed rate between 1.50% and 2.08%.
Pay close attention to the ancillary costs which make a good figure overall: preliminary, collection, payment for the management of the installment and all these costs such as closing the file, stamp duty, insurance. An average expert costs about 300 USD but it also depends on the work that needs to be done, do not forget the extra expenses of the notary who must formalize the mortgage.
Another important variable is the timing of delivery, usually it takes two weeks but it can take even months before concluding the practice. If you already have a mortgage, you can either ask for a new one or add the sum to the previous one.
It is good to remember that the bank can never apply a penalty if you decide to pay the mortgage first, however, there may be compensation for the value of the mortgage that you will find specified at the time of stipulation.
Documents needed to apply for a mortgage to renovate your home
For ordinary maintenance or on limited parts in the bank, the estimate made by the company that will be in charge of carrying out the work will be presented. In the case of extraordinary maintenance, on the other hand, the building project must be delivered to the bank in addition to the cost estimate, as well as the application submitted to the Municipality after the communication of the start of the activities.
If you then speak of major works that involve substantial changes to the structure of the house you will need to pay the municipal administration. The bank will receive a quote, building permit and received the aforementioned payment.
The best mortgages available for renovations
All banks offer the possibility to take out very interesting mortgages and loans, obviously each one is characterized by a different rate.
Among the best on the market there is surely Lite lender company Mortgage which is for everyone up to 75 years (on the mortgage’s due date), has a value that varies from 0.19% to 0.23% based on the duration. The opening costs are around 500 USD and those to be paid monthly a few USD. The substitute tax has a cost of 0.25% of the total and 60% of the total cost can be financed on the basis of the expert’s report. As required by law, the stipulation of an insurance policy is mandatory for this type of mortgage.
This mortgage in particular is useful because the appraisal costs are not paid and the interest rates are not increased by the spread.
Home Renovation Mortgage, How It Works, Access and What are the Best: advances 2019
The mortgage plan for home renovation is certainly varied, banks continue to set up various types of packages to satisfy even the new generations who often do not have great guarantees to access them. Furthermore, many banking institutions aim at a particular offer with a variable duration and some options such as the possibility of cutting the installment, reducing it, moving it in order to meet the needs of an increasingly unstable market.
It is no wonder then that interesting news is proposed every month.
Certainly for those wishing to deal with this idea it is good to carefully evaluate the rates, the expenses in the short and medium term and make an overall check so as to plan better, taking into account the individual advantages that can be offered, which is the best mortgage to renovate your home.
