In Switzerland, according to the Federal Office for Statistics, more than one out of three people is a houseowner, and this number is constantly increasing.
Owning a house has many advantages, but it also comes with important costs: repair, transformation, renovation…The maintenance costs are estimated at around 1% of the house’s value, and this is per year. Is renovation credit a good solution to cover these costs? We drew a list of 5 advantages that come with a renovation credit.
A renovation credit works exactly like a usual consumer credit. The houseowner will request a loan from 3’000 Chf to 150’000 Chf (sometimes more) to a bank, a credit agency or an independent broker. The monthy cost will then depend on:
Please beware that the total interest will mostly depend on the reimbursement duration and not on the interest rate.
The estimated 1% of the house’s value is only an average. A homeowner can also live in his house for more than 10 years without having to repair anything and then have to face important maintenance fees that exceed his budget. In such a case, a renovation credit has many advantages!
There are many credit agencies and banks in Switzerland! Where should you then go for an advantageous renovation loan? It it always better to find a financing partner that is close to you an experienced (see for example Multicredit, that has brokers that can meet you in the whole of Switzerland)! Verfify that your contact has a website and appears in a directory for it will show you how serious their offers are!