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How to finance a home extension? What credit? What rate?

A home extension is an important project, which needs to resort to tailor-made financing. Several banking solutions can meet this need and choose the right credit to achieve the extension of the home.

Housework and extensions

Housework and extensions

The purchase of real estate will usually be done with a mortgage, some borrowers will include in the funding an envelope dedicated to the financing of works, that is to say, renovation, development or embellishment. Simply, it is not always possible to predict the various modifications and the different arrangements that can be made over time.

It is common to quickly run out of space, especially when the family is growing or people want a little more living space. The extension of the house can also concern a veranda, the addition of a room, the development of the attic, the creation of a garage or the creation of an office attached to the house. All these projects require adequate financing, which takes into account not only the needs of the project but also the situation of the applicant.

Credits to finance a home extension

Credits to finance a home extension

The mortgage

The home loan can finance an acquisition and / or work in a dwelling. If the cost of the extension is more than 75,000 euros, it will then be necessary to resort to a home loan, unless the borrower is able to cumulate two loans for consumption. The interest of the mortgage is to be able to enjoy more interesting rates, but it usually requires a guarantee (mortgage, deposit).

The loan works assigned

The consumer loans affected is a credit whose amount is less than 75000 euros and whose obtaining is intrinsically linked to the completion of the work. That is to say, the credit agency will ask the borrower for proof of his work, an estimate, a purchase order from a company to grant the funds. This is particularly suitable when the work is done by a building company or more generally by a professional.

The personal loan

The personal loan

If the extension works are carried out by the inhabitants and that the amount is evaluated at less than 75 000 euros, then the personal loan is ideal because it allows to obtain an envelope for the work without having to justify the use. The inhabitants can thus dispose of the funds and buy the materials necessary for the realization of the extension (blocks, cements, bars of concrete, insulation, plaster …). Simply quantify the amount of work to avoid paying more than expected.

Credit consolidation

For homeowners who already have one or more credits in progress, to cumulate a new monthly payment is not always possible, the idea is to resort to the regrouping of credit to make buy back the current loans and to include the amount of the works of extension in the new credit which will propose a reduced monthly payment. The interest of this financing is to avoid increasing the debt of the borrower and to readjust the conditions of repayment with a single contract as well as a longer duration.