Unless you set your sights on a brand new home, it is common to have to do some small work to make your future home to your liking.
However, if energy renovations benefit from public aid, this is not the case for simple interior “refreshments”.
Whether it's to give a facelift to the kitchen or the bathroom, to enlarge the living room by breaking down a partition or even to replace the obsolete wallpaper, you will have to get your hands on the wallet...
1 - Mobilize your savings
It is generally more advantageous to be able to count on one's own funds.
"Rather than using all your available contribution as part of your mortgage, you can choose to keep part of it to finance these small works", explains Philippe Buyens, general manager of the Capifrance real estate network.
Of course, this requires having sufficient financial leeway, so that the contribution remains significant in relation to the requirements of the banks.
Similarly, emptying your booklet A for the occasion would not be wise since you could no longer cope with a possible blow.
There is therefore a balance to be found and an order of work priorities to be established, even if it means not doing everything right away.
This is why it is imperative to "work upstream on your budget with a broker so as not to be caught off guard", according to the professional.
2 - Take out a consumer loan
Ask yourself how you are going to make these arrangements.
If you have the soul of a handyman, you can roll up your sleeves to reduce the bill and opt for consumer credit.
Banks and credit companies have created a dedicated sub-category stamped "work loans".
Whatever the title, check the terms and conditions: an assigned credit will require you to produce invoices, while an unassigned credit will leave you free to use the money as you see fit.
In addition, the interest rate here can be very high, it will be necessary to bring into play competition and limit the repayment period as much as possible.
Downside, these monthly payments will be added to those of the mortgage … The advice: prefer this solution for a small work envelope.
3 - Integrate the work into the real estate loan
The bill can nevertheless quickly climb when you want to refresh several rooms.
When the works budget is significant, it may be relevant to integrate it into the mortgage.
“This solution makes it possible to benefit from an attractive interest rate, to smooth the cost over the entire loan and to have only one monthly payment”, comments Philippe Buyens.
That said, it is also more restrictive.
Indeed, banks generally require the intervention of a professional craftsman and require his invoices.
In addition, only work "attached" to the house can be financed here, which excludes the purchase of simple furniture.
On the terms side, the entire capital can be released on purchase and the monthly payments launched in stride, or the latter can begin at the end of the work or the loan can be split in two;
the part dedicated to renovations being released as the work progresses.
OUR "HOUSE" FILE
Good to know: this financial arrangement only works if the loan is guaranteed by a mortgage or a surety.
The special legal mortgage of the lender of funds (which has replaced the privilege of the lender of funds since 2022) excludes the financing of works.
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Don't underestimate the "small" jobs
During your real estate visits, note all the refreshments to be considered in order to be able to quantify them as well as possible.
On the paint and floor covering side, many online simulators allow you to assess the quantities to be expected and their price depending on the surface.
On the other hand, if "technical" work is necessary, such as the removal of a partition, plumbing, the insulation of a door or the complete renovation of a room, do not hesitate to ask for a counter -visit with a craftsman to obtain an estimate before formulating your purchase offer because the invoice can quickly flare up.
Finally, don't think you're done with the fittings so quickly!
As the managing director of Capifrance reminds us: "in a very general way, we can imagine that we will have between 3 and 5% of the price of the property to invest in the five years following the purchase of a house to carry out all the non-priority interior and exterior improvement works for which we don't always have an idea of a budget at the start”.
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