Which loan should I take out to fund my renovation work?

Which loan should I take out to fund my renovation work?

Option 1: renovation loan

Benefits

Ability to work out and apply for your loan online
Quick to arrange
No security required apart from an assignment of wages if you fail to pay
No notary-public required

Drawbacks

Often comes at a higher rate of interest than a mortgage loan
Online applications only possible for loans of 50,000 euros or less

Option 2: energy loan

Option 3: re-use your mortgage

Benefits

Attractive terms
No new mortgage: if sufficient equity has been released, you don't need to apply for a new mortgage and you won't pay any additional notary-public's fees, just a loan origination fee
Tax breaks: a renovation loan is a new mortgage loan. When renovating an investment property or holiday home, the principal repayments may qualify for tax relief under a long-term savings scheme and/or the interest for standard interest relief

Drawbacks

If you take out a new mortgage loan, you pay a loan origination fee

Option 4: garden loan

Option 5: loan for home interior improvements

Benefits

Ability to work out and apply for your loan online
Opportunity to spread the cost
Fixed repayment schedule (you know exactly how much you have to pay and for how long)
No invoice needed as proof

Drawbacks

Higher rate of interest

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