Increase mortgage for the renovation?
You can choose to take out a (second) mortgage. In many cases, the interest will be slightly lower than the interest for a personal loan or revolving credit. With a (second) mortgage, however, you must take into account one-off costs such as notary fees, appraisal fees and consultancy fees for the advice. In many cases, consumer credit will be cheaper. An important point in the trade-off between the different types of loans is tax deductibility.
The ideal duration
When determining the term, it is wise to look at the purpose of the loan. The term of a loan used for a new kitchen will, as a rule, be shorter than that of the loan used for an extension to the home. It is also important to look at your personal situation so that you are able to continue to meet your monthly obligations during the entire term.
Benefits personal loan
With a personal loan, you know exactly where you stand. Both the term and the interest are fixed in advance. With older loans, you had to pay a penalty interest in the event of early (extra) repayments for the loss of the calculated interest. Nowadays you can repay the loan free of charge. The interest that you pay for the loan that you use for the purchase, improvement or renovation of the home is tax-deductible.
Benefits of revolving credit
With revolving credit, you can pay off (extra) without penalty. Certainly, in the event that you expect to make additional repayments during the term of the loan, this can be a good solution. With revolving credit, you also have the option to withdraw repaid amounts. This way you benefit from optimum flexibility. However, the interest that you pay for a revolving credit concluded after 1 January 2013 is not tax-deductible.
Protect your financing
A renovation of your kitchen or bathroom can go down well. To ensure this (high) loan amount, so that you borrow without worry, we have a credit protector for your loan. This insurance temporarily takes over the payment obligation from you in the event of unemployment or disability. The insured amount is released in the event of death so that you do not leave your relatives behind with your loan.
Renovate or move
Do you have doubts about renovating or moving? Then view our “renovate or move” page.Take out a personal loan to make improvements to your home, the interest costs are tax-deductible