What to Know for a Crédit Populaire Européen Renovation Loan

The beautiful days are here and with them certainly the desire to renovate and do some work in your house. Take advantage of it to bring more comfort to your whole family. Why not install a veranda in your garden, or transform your garden? Discover the ideal solution with the renovation work loan and how to finance the work. Carrying out work, converting your attic to add a quieter living space in your house. Change the frames or install double glazing to save on your heating oil bill…

Who can take out a work loan?

Only homeowners can take out a work loan or renovation loan. A tenant cannot take out a loan under the preferential conditions of the work loan. They will have to take out a personal loan or a classic personal loan.

What are the conditions for taking out a work loan?

• Be the owner of your home;
• Provide the estimate signed by both parties (the contractor and the owner);
• In the absence of an estimate, provide the invoice for the work;
• The estimate must cover at least 80% of the amount borrowed;
• Identity card;
• Last three pay slips;
• Bank statements where the salary is paid;
• Title deed of the house;
• Loan in both names for married people.

Is there a maximum borrowing limit?

No, it will all depend on your contributory capacity.

Personal loan or Mortgage loan?

In terms of work loan or renovation loan, this is an important question that we are often asked: which is the most interesting formula: the personal loan or the mortgage loan? Generally, the personal loan will be the winning formula. Indeed, the mortgage loan incurs costs and even if the rates are lower in mortgage loans (3.5%), the costs incurred by the mortgage loan will negate this advantage. The rates for personal loans are around 7%, so it is only if you plan to borrow a very large amount (more than €50,000) that the mortgage loan will become interesting. The mortgage loan will be the solution for the prospective borrower who cannot offer other sufficient guarantees (for example, if the salary amount is too low or if there are already other ongoing loans).

Are mortgage loan fees significant?

When purchasing your house, the financial institution will establish a mortgage guarantee. This guarantee will incur four types of fees: loan deed fees, notary fees, registration administration tax, and VAT. When your initial mortgage loan is already well repaid, you have the option to take out another mortgage loan to carry out work. In this case, the fees will be lower. They will only be of two types: loan deed fees and notary fees. Thus, to know exactly which of the two formulas is the most interesting for you, you will need to ask one of our brokers to analyze your file. Let’s say below €25,000 and unless you really have no other solution, you should favor the personal loan.

And don’t forget….

Finally, at the pace at which raw materials are being depleted and given the frantic increase in energy prices. Carrying out insulation work, for example, means reducing your energy bills. The same goes when you buy a refrigerator or a dishwasher. From the higher range that will consume significantly less electricity. In the long run, you will benefit and contribute to the ecological effort. With Cpe you benefit from advantageous rates, apply for your loan online.