How to apply for a mortgage for your renovation

As you ask, how it works

The years pass, the user consumes, the needs of life change, and, at a certain point, it is no longer possible to postpone: the house needs to be fixed. Simple routine maintenance work or more substantial extraordinary maintenance may be required, perhaps to replace the fixtures, change the layout of the rooms, improve energy efficiency. Or more radical works that, for example, modify the volumes of the building.

In any case, the expenses to be incurred are demanding, but a restructuring loan helps you to deal with them with greater breadth. In a time frame that, in principle, reaches up to 30 years and repay the sum for the works in the medium-long term with fixed, variable, or mixed installments, according to your possibilities. In addition to modernizing the family home, you can apply for a mortgage for the purchase and renovation of your future home. The loan covers up to 80% of the market value that the building will have once the works are completed.

How does the restructuring loan work? To apply for a loan, there are a series of technical documents to be delivered to the bank :

  • Project drawings if, for the type of intervention, the advice of a designer is required.
  • Building permit, DIA (notification of the start of activity), or SCIA (certified notification of the start of activity) complete with attachments and technical sworn report.
  • Estimate of the company that will carry out the work.

In addition to those that strictly concern the works, other documents on the property are required for the loan: its title of origin, such as the purchase contract, the notarial deed of opening the succession if the house has been inherited, etc. If, on the other hand, the sale of the property is in progress, bring the accepted purchase proposal, or the compromise, and proof of payment of the deposit. In addition to this, floor plans and cadastral dataenergy certification.

You also need your documents (such as identity card, social security number, family status, marriage certificate) and those that certify your income, for example, your paycheck if you work as an employee or your tax return if you are a freelancer.

You can get your home renovation loan in two ways. In a single solution or in several installments, which correspond to the progress of the work itself and which, generally, consist of an advance, interim payment, and bond balance. 

Having a SAL (work progress) mortgage can be a viable solution for longer and more complex renovations.

Finally, if you apply for a mortgage to renovate your first home, you have tax benefits: you deduct a percentage of the interest and ancillary charges you pay on the loan from the IRPEF and take advantage of the tax bonuses provided by law for different types of work on the house.

Here you will find all the proposals that BPER makes on mortgages to renovate the house: consult them and then make an appointment with our specialists to find the right mortgage together.

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