How to Get Home Renovation Financing
Sometimes it is vital to have complete home renovations to enhance the overall house value and to adjust to evolving family requirements. While comfort is an essential aspect of such an upgrade, making the home a more eco-friendly or energy-saving choice is also essential. As such complete home renovations add pressure on the short-term finances, a good way of funding the house renovation is to opt for top-up financing.
Getting Home Improvement Financing
To begin your search for finance options for your home improvement project, you can walk into any bank counter and seek all help. Experts at banks assist customers through the simple and quick process of applying for a home renovation loan. The house loan can be disbursed in as less as 72 hours as they only need some basic documents and provide you with easy norms for eligibility. You can check for the nearest branches of banks and walk in to begin the application process for the loan.
Who Can Get Home Renovation Refinance
Generally, a top-up loan is a good investment to set up, furnish, or complete home renovations. Banks and other financial corporations offer top-up loans when you’re opting for a house loan or balance transfer for the house loan. The eligibility criteria are low with minimum documents as you’re already got a loan account with the lender. So, it is hassle-free and easy to apply for it.
To qualify for a complete home renovations loan, you’ll need to stick to various guidelines:
- Make sure you’re living in the house as the primary residence
- Use licensed contractors for electrical, structural, and plumbing remodelling works
- You and your hired contractor need to abide by the agreed payment schedule.
- It is easy to work with a consultant to manage the planned complete home renovations process.
Any salaried or self-employed individual with a regular income can avail of a house loan. This loan is ideal for home renovation, improvement, or the extension of your current residential property. For most top-up complete home renovation loans, you’ll need to have a credit score of 620 or more. The exact credit score is based on factors like the loan type, total units of the property, and the amount you’re spending.
Important points while applying for house renovation financing
- It takes less than 10 minutes to submit the loan application form with the needed documents.
- In some banks, you might be asked to pay a basic application fee.
- A panel of experts then review the house loan application quickly and study the current age, EMIs, income, property, and age.
- After approval of a home remodelling loan, you would need to pay a processing fee of a small percentage of the total loan amount or a fixed fee with the applicable taxes.
- The bank will disburse the total loan amount depending on your property’s construction stage.
Applying for a home improvement loan online
While there is always a choice to apply for a loan online, you can also get help from a familiar face at any bank branch. Thus, it is always best to wait for a while and get answers to all the questions at once. For any further queries, you can reach out to the experts online, who respond promptly to all your home loan queries and help you in completing your home renovation loan application at the earliest.
Why should you apply for a home renovation refinance?
- Economical: With this loan, you get access to funds at a low rate. Therefore, it is a more budget-friendly choice than applying for a new personal loan. The top-up home remodelling loan also offers a similar long tenor to a home loan, making the EMIs more affordable.
- Tax Benefits: While using the top-up loan for renovating a house, you become eligible for tax benefits on the part of the interest on the top-up loan. The amount includes the tax deduction on interest payments of the house loan. If you’re using a top-up house renovation loan for house expenses, you’re also eligible for deductions on the overall principal sum. The limit is for the original loan’s principal and the top-up home remodelling loan.
Home remodeling loan tenure
A house improvement loan’s general tenure is up to 20 years. Although, the loan can only be sanctioned if a house improvement project has a chance of completion within a year.
You can customize your house as you like while looking for the perfect mortgage-complete home renovation loan solution. With more than a dozen finance options to select from, you’ll get the right loan to bring life to your old home and turn the fixer-upper into the house of your dreams.