What should you know if you want to get a loan to renovate your home? Photo: Shutterstock
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Buying a home is a big step and often the new home must be adapted to personal preferences and needs. But what to do in a situation where the house needs renovation or repair, but you already have a valid home loan? A lower interest rate may seem attractive, but at the same time the requirements for obtaining a loan are higher.
According to Anne Pärgma, head of home loans at Swedbank, a certain amount of time does not need to have passed since the loan was granted. Since each loan depends on the borrower and his situation, even when requesting additional money, you should start by sending a loan request to the bank in case of need.
Likewise, according to Pärgma, it is worth remembering that the minimum loan amount secured by a property is 20,000 euros. “The assessment of financial capacity is the same as for a new loan, including the need for the customer to submit an appraisal. A loan agreement must be drawn up and if the existing mortgage is not sufficient to secure the loan, the loan must also be increased “notary mortgage amount,” Pärgma said.
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2024-01-23 11:11:01
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