Looking for a solution to finance renovation work in your home? Discover the features of the loan works.
The loan works is a consumer credit that allows borrowers to finance work in their homes. How much can I get by taking out a work credit? What type of loan work to choose? All the answers in this article.
The characteristics of the loan works
The loan works is a consumer credit whose amount is limited to 75 000 USD. Beyond that, it enters the category of mortgages. Before granting this financing, the bank issues a preliminary offer that informs the borrower of the terms of the contract (interest rate, repayment period, settlement procedure, etc.). Once the loan offer has been signed, the subscriber has a withdrawal period of 14 days. In case of withdrawal, the borrower does not have to justify its decision and the lender can not apply penalties (except if the amount of the credit exceeds 10 000 USD, in which case the penalty is capped at 1% or 0.5% depending on the time elapsed between the early repayment and the end date of the credit agreement).
What are the different types of loans work?
The credit works can be used to finance a renovation, a development, an extension or the purchase of equipment. There are two main types of work loans: bank work loans and assisted loans.
These may be unallocated work credits. In this case, the completion of the work is not linked to the granting of credit.
It can also be allocated work credits which means that the loan is linked to the completion of the work it finances.
Assisted work loans
State-subsidized loans include the Social Accession Loan (SAP), the objective of which is to promote the homeownership of low-income households. The SAP can also be used to finance works.
The “work-to-work” loan is granted by the 1% Housing agencies and can only finance the beautification, renovation or expansion work on a principal residence.
The home improvement loan can be requested by households receiving family assistance. Its amount varies from 1,000 to 7,500 USD and its duration from 12 to 78 months.
Better known, the Zero Rate Loan (PTZ) can only finance work aimed at improving and optimizing the energy efficiency of housing. Its amount varies depending on the type of work from 10,000 to 30,000 USD.
Lastly, loans from Anah make it possible to finance works whose amount exceeds 1,500 USD excluding tax and which are carried out in the principal residences of more than 15 years. The amount of the grant depends on the nature of the work done.
Advantages and disadvantages of credit works
The works credit has the advantage that it can be obtained quickly. When the borrower wishes to take out an unallocated loan, he has no proof to provide to the bank. As with any financing search, it is important to compare the annual percentage rate of charge (APR), which includes all fees charged for obtaining credit.
The main disadvantage of the credit works is the amount limited to 75 000 USD. In addition, this type of loan is generally offered at a rate higher than that of a mortgage that is spread over a longer period. Most of the assisted work loans are subject to means tests.
To find the best deal for credit jobs, feel free to play the competition using a free online comparison and no obligation.