Home extension credit is common to enlarge or develop your property. It is through a work loan that the best rates are usually granted. Let’s list the types of loans and compare the offers of different credit agencies.
Choosing the right extension credit
The average expense for an extension credit is most of the time more than $ 10,000. The addition can be much more salty in certain cases, when one wishes for example to undertake work of raising. Some examples of the average price found per m² depending on the type of development desired:
Types of loans for an extension
The extension credit is actually presented in the form of a work loan. Credit institutions will generally offer better rates on presentation of quotes than in the case of a personal loan. Let’s review all the possibilities before committing to an extension credit.
Credit organizations, more advantageous?
Credit agencies have experience in processing consumer credit applications for works. Our comparators generally find the best rates on average amounts associated with an extension credit (between the 10,000 USD and 20,000 USD credit) with these credit specialists. Some concrete examples of the rate differences observed for works credits.
For an extension credit of $ 10,000 (veranda of around 10m²) over 60 months:
- The best organization in our comparator offers a fixed APR rate of 2.99% (or 179.46 per month) for a credit cost of $ 767.6
- The second organization is positioned at 4.90% ($ 187.77 per month), for a cost of credit of $ 1,266.20
- The offer that completes the podium has a rate of $ 5.77 ($ 191.58), for a credit cost of $ 1,494.80
The difference between the best offer and the second is $ 500 on these criteria: a chasm!
For an extension credit of $ 20,000 (additional concrete block of around 15m²) over 84 months:
- The best rate observed is 3.85% ($ 271.39 per month), for a cost of credit of $ 2,796.76
- The second shows 4.90% ($ 280.74 per month), for a cost of credit of $ 3,582.16
- The third choice offers a rate of 5.79%, for a cost of credit of $ 24,255
The difference increases in terms of total cost of credit on this classic example of extension credit. For the same $ 20,000 project, you can pay up to $ 2,000 more between two different organizations.
Credit extension craftsman
It is possible that the craftsmen associate with a credit organization for the realization of your work . The craftsman then carries out the quotes, collects the supporting documents and directly submits the loan file for study. Going through this relay between the professional and the lender to carry out his work requires a great deal of trust between the two parties.
We must still expect an additional cost related to the payment of the craftsman. The credit rate is likely to be affected, as is the total cost. The artisan extension credit is only very rarely advantageous. It is even more advisable to compare the works credit.
Works credit at banks
The banks only offer an accommodating works loan to their best customers . Those with a low debt ratio (calculate theirs here), who justify high incomes. Or at least more than enough to ensure reimbursement over time. Many files will receive negative responses.
Our various studies on the work credit market at banks reveal a systematically higher cost than at credit organizations. The analysis of the Crédit Agricole works credit, carried out on the basis of an amount of $ 20,000 over 60 installments, indicated for example a cost of credit 40% higher than that of the best organization.
Apply for a personal loan
You can quite make adjustments in your home by claiming a credit without supporting documents, such as a personal loan . However, let us draw attention to the cost of the personal loan, which is almost always more expensive than an assigned work loan.
Extension credit: good reflexes
The first reflex is to compare the work credit offers. We have seen that for an amount of $ 20,000, the difference in rate between the best organization and another yet classified in the top3 could generate $ 2,000 in additional costs. Once the quotes have been obtained and the estimated repayment period, our advice is to turn to an assigned work loan . While the best rates are generally offered by credit institutions, some banks may also – in rare cases – offer advantageous offers. We recommend that you go through a loan directly from the craftsman only if the rates are exceptionally low.