The tax breaks on the work done on your home have prompted various banks and financial institutions to increase the offer of the loan for restructuring, which in some cases may represent an alternative to the more classic renovation mortgage. The preference on the loan or mortgage depends on various factors that must be assessed on a case-by-case basis.
How to choose a type of offer?
When it comes to making a comparison between the products offered by multiple banks or credit institutions, the basic principle, for judgment and choice, is that on which everything must be referred to the product that is best able to satisfy its own necessity, with the best value for money.
Obviously it is not convenient to restrict one’s choice alternatives to a few products, but it is always preferable to move around involving the largest number of proposals that the various banks allocate to the restructuring loan. For this reason it is necessary to request more estimates so as to identify the proposal which, for one’s specific and personal case, guarantees the best mix of rate, costs and duration obtainable.
Restructuring loan of Onelink Bank and Postal Line Bank
For greater clarity, let’s take into consideration the restructuring loan proposed by Onelink bank and the one offered by Postal Line Bank.
Onelink Bank offer
Onelink Bank has maintained the characteristics and conditions fairly constant over time for its Personal Home Renovation Loan. These can be summarized in:
- minimum amount to be requested 5 thousand dollars;
- maximum amount that can be requested 100 thousand dollars;
- fixed rate (at 7/3/2018 it is fixed at 6.5%);
- duration from 36 months up to 120 months.
The documents required are personal and profitable while in order to access the phase of requesting financing or a quote, an appointment must be made in the agency that is most convenient to reach. The investigation costs are equal to 1% of the requested amount but in any case cannot exceed 500 dollars.
The offer of Postal Line Bank
The offer of the Postal Line Bank home renovation loan has been revised with significant changes, which mainly concern repayment times and amounts that can be requested. The main conditions are:
- minimum amount to be requested 10 thousand dollars;
- maximum amount that can be requested 60 thousand dollars for holders of Savedoes Bank account, while for those of the savings account the maximum amount reaches a maximum of 30 thousand dollars;
- repayment duration between 36 and 120 installments;
- fixed rate for the entire duration.
Also in this case the necessary documents are the personal ones, the health card and the income documents. In addition, documents are provided that demonstrate the type of use and expenses that are covered by the loan.
More benefits with the loan or mortgage loan?
Generally between a mortgage and a loan for restructuring we can ‘appreciate’ some differences inherent above all to:
- maximum duration;
- any forms of guarantees that may also be requested on the property (in the case of the mortgage).
To appreciate the differences, let’s take the example of a credit institution that has expanded its offer of financing for the renovation at a time when moving house has shown a stagnation. We are talking about Lite Bank which offers two products that can also be used for restructuring. Let’s see them together:
Loan to Italy
This is a loan that is granted on the basis of the project to be carried out and which provides as standard features:
- an allowable amount between 4 thousand dollars and 100 thousand dollars;
- the duration of the amortization plan between 12 and 120 months.
To request it, however, it is necessary to have invested with Lite Bank at least 5 thousand dollars (also simply deposited in the securities account).
As you can therefore see with this example, we see that even if you choose the same bank, if you need small amounts and do not want to meet the issues and expenses related to the mortgage, then it is probably the restructuring loan that responds best to needs. In the case of higher amounts and durations that go beyond 10 years, then the mortgage may be the most suitable solution.
However, these assessments cannot be made a priori but only considering specific cases. The same goes for looking at the different proposals of the various banks, since there are not many banking institutions that at the same time provide both a specific restructuring loan and a mortgage with purposes that can be used for restructuring (or products created specifically).
So the advice is to ask for more quotes starting from the banks that offer both mortgage and loan and take advantage of any advice on both products. These, under the conditions, should not be compared directly by them, but will allow you to have a clearer idea of the product that best suits your needs.