What loan to choose to finance his work?
You plan to do some work at home to improve the energy performance of your home or simply redo your home at your leisure? There are many loans that are tailor-made for individuals who want to do work. our website introduces you to the main ones and gives you some information to help you make your choice.
What are the questions to ask before choosing a loan works?
Before taking the steps to take out a work loan, you will have to:
- define the objective and scope of the work you plan to do (improvement of your living environment, upgrading, reduction of your energy bill…)
- request a series of quotes from several professionals to properly estimate the cost of the work
- evaluate your debt capacity (as a reminder, the monthly payments of all your loans can not exceed 33% of your monthly income)
- the impact of monthly payments on your family’s budget
Loans work at zero interest rate
Several work loans exempt the subscriber from paying the interest rates, the latter being paid by the State. It’s the case :
- loan rate 0 (PTZ). Set up by the State to help individuals finance the completion of work in a new home.
- the eco loan loans at rate 0 (eco PTZ) also granted by banks having signed an agreement with the State. It is used to finance renovation works (thermal insulation, installation of renewable energy sources, etc.) aimed at improving the energy performance of dwellings built before 1990.
What is the housing savings loan?
The housing savings loan, is intended for the holders of a housing savings plan for at least 4 years. The latter can then:
- apply for a mortgage at a favorable rate
Be aware that the amount of this loan is capped at € 92,000 and that you can also benefit from a premium paid by the State under certain conditions.
Work loans addressed to modest households
Several loans have been custom created for low income households who wish to perform work. It’s the case :
- the home improvement loan granted to households receiving family benefits. Its amount is equivalent to 80% of the expenses related to the work, capped at 1,067.14 euros (with an interest rate of 1%) and repayable over 36 months.
- social housing loan for low- income households wishing to become homeowners. The amount lent is 1,500 euros for work concerning the improvement of housing, 4,000 euros if it involves energy saving work and 4,500 euros for the construction or purchase of housing.
What about the loan National Housing Agency?
The latter is aimed at homeowners who undertake renovation work in their home and which concern:
- the renovation of substandard housing
- thermal insulation
- sound insulation
- asbestos removal
The loan amount is based on a package of works. He’s from :
- maximum 20 000 euros for a bunch of 2 works
- maximum 30 000 euros for a bouquet of at least 3 works
How to choose the best loan works?
Before taking out a particular loan, play the competition and study the conditions of each loan as well as the total cost of credit (with interest). For that, do not hesitate to solicit a maximum of actors:
- study the credit offers of your bank;
- contact various organizations or your Family Allowance Fund to find out about their loan solutions
- go to our website to compete in a few clicks the credit work proposed by different banks and simultaneously compare their conditions and their rates