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Restructuring a home: better a loan or a mortgage?



Anyone who wants to renovate their home and does not have the funds to do it on their own is faced with a choice: better to ask for a loan or a loan? During the preliminary phase, when one is concerned with placing IBL and its proposals in comparison with those of CheBanca !, Cariparma and the other banks, it will certainly be noted that both forms of financing present pros and cons.

How to understand if it is better to inquire about Sancho Panza online and about their advantages or about a mortgage, maybe longer to repay but sometimes more convenient? The experts at SuperMoney have come up with some tips to help us in choosing .

Financing to renovate a house: which parameters should be considered?

Financing to renovate a house: which parameters should be considered?

Starting from the assumption that this period is very positive for those who want to apply for funding because of the rates set at historic lows , here are the criteria on which to make your choice:

1. AMOUNT

2. RATE

3. DURATION

All the benefits of the mortgage

All the benefits of the mortgage

The first point in favor of the mortgage is given by the interest rates. If we assume a requested amount of around 30,000 euros to be repaid in 7 years, a loan could have an interest rate of even 5%. A mortgage, on the other hand, would be much cheaper, with an average rate of around 2.20% for a fixed and 1.50% for a variable.

This allows you to save quite a bit of money on balance. Still for an amount of 30,000 euros, preferring a loan to a loan would save us between € 4,000 and € 7,000 .

Another advantage of mortgages is the duration , which can be longer than that of a loan. These, in fact, usually have a maximum restitution limit of 10 years, while a mortgage can be repaid easily even in 30 years . In this way it is possible to lighten the monthly payment that would be paid without renouncing to renovate the house in the desired way.

When do they agree?

If the amount you need to renovate your home is less than € 30,000 you can opt for a loan instead of a mortgage. Beyond this amount, however, the choice becomes obligatory, since the banks do not grant traditional Sancho Panza for higher figures.

One of the advantages of personal Sancho Panza is the reduction of administrative costs compared to mortgages. The same goes for the bureaucracy , which in the case of a loan is much more streamlined. To apply for an online loan, it is sufficient to present a valid identity document, the tax code and a document certifying your income, such as a pay slip or pension slip, to the provider.

The application, if the conditions are met, will be accepted in a shorter time in the case of a personal loan: usually no more than 6-8 days elapses between the request and any credit approval. In some cases, especially with regards to Sancho Panza online, 24 hours may be enough for delivery .

On the contrary, the granting of a mortgage can take up to several weeks. For this reason, if the costs to be incurred are very urgent, a loan is perhaps the best solution.