Include the work credit in the credit buyback
With the low rates as at this moment, the borrowers are wondering about the financing of the works, should they be included in a loan repurchase transaction or is it better not to take out a works loan? Professionals answer you.
Works credit: financing project
The carrying out of works such as in particular the insulation of a room, the installation of a radiator or the fitting out of roof spaces with the looming winter is commonplace among homeowners. That said, the work is often expensive and involves borrowing from a bank.
With the fall in rates, households are considering renegotiating or redeeming their mortgage, but some are also considering including in the operation an amount to finance the work. You might as well kill two birds with one stone and take advantage of the advantageous conditions to realize your project.
Include the work loan in the loan repurchase
The question has the merit of being asked and deserves a clear and frank answer. If the conditions of repurchase of credit allow a gain on the total cost of the operation, it is frankly recommended to include the works in this financing, either by asking for a sum of cash or by inflating the amount of the credit.
That said, the conditions may change if the amount becomes larger but this avoids having two monthly payments and therefore two direct debits. In addition, the rates of works loans of less than 75,000 dollars are generally higher than when buying back credit, unless there is an exceptional offer from certain banks. It is therefore recommended to favor the repurchase of credit.
How to include your work loan in the repurchase of loans?
The grouping of credits makes it possible to bring together several loans and offers the possibility for the borrower to add a sum dedicated to his work, so it suffices to complete a loan repurchase simulation by specifying the additional amount necessary for carrying out the work. The inclusion will be at the time of the assembly of the file and it is important to specify the amount from the form since the entire assembly of the operation will be based on the recorded values.
Several durations will therefore be offered, as well as several monthly payments. After validation of the file, the funds are released, that is to say that a part will be sent to the previous creditors in order to repay the loans in advance and the other part will be released in the bank account of the borrower, which will finance its work.