Financing Renovations with a Mortgage

Basel, November 6, 2024

Financing Renovations with a Mortgage 🔧🏡

Are you planning to renovate or remodel your home? The costs of renovations can quickly add up. A good solution to finance them is by increasing your existing mortgage. Here’s how it works and what you should consider.

1. Own Funds: Before you can increase your mortgage, you generally need to contribute 20% of the renovation costs yourself. This means you should have your own funds available for the renovation – whether it’s for a new bathroom, a new heating system, a modern kitchen, or the garden.
2. Mortgage: You can increase your existing mortgage. To do this, the bank will reassess your property and adjust the financing accordingly. Key criteria like affordability and loan-to-value regulations are considered to ensure you can manage the additional costs in the long term.
3. Product: Many banks offer the option to directly take out a fixed-rate mortgage for the renovation. This way, you’ll know in advance how much the additional monthly payments will be. A fixed-rate mortgage gives you budgeting certainty since the interest rate remains fixed for the entire term.

💡 Tip: If you need to renew your mortgage soon, you can plan for an increase as well. This makes financing the renovation easier, as you won’t need to wait for a new application.

Increasing your mortgage is a practical way to finance renovations while keeping your monthly costs under control. But as always, make sure to compare mortgage interest rates and bank terms to find the best offer for your needs.

Contact us at IMMANO for your mortgage extension! 😉

We’ll help you find the best options for your financing – from mortgages to mortgage comparisons and customized solutions for your home. Get in touch if you want to learn more about mortgage interest rates, the best mortgage comparison, and tailored solutions.