More and more people are choosing to renovate instead of moving. As a result, we're seeing a rise in the number of renovations. Financing renovations with NHG (National Mortgage Guarantee) is becoming increasingly popular. This means taking out a second loan, or a second mortgage, to cover the renovation costs. Is this wise, or are there better and more affordable options?
Renovations are often carried out in homes where the current owners intend to remain. They aim to improve the property or increase its value. Renovations immediately after purchase are also common, where the home is renovated to meet current needs. Less common are renovations that improve the property before it is put on the market.
We often see renovations being carried out after a building inspection . During this renovation, any (hidden) defects are repaired. Of course, every renovation involves costs. How can you maximize your financing options?
Financing a renovation with a National Mortgage Guarantee (NHG) , a second mortgage, is currently very popular. This doesn't mean it's the most financially advantageous option for everyone. Are you planning a small renovation and will the costs remain under €25,000? Then, in the vast majority of cases, it's more advantageous to take out a personal loan. A second mortgage can be beneficial if the renovation costs exceed this amount.
It won't surprise you that a renovation is more likely to be expensive than anticipated. Many people make a rough estimate of the renovation costs beforehand, failing to account for unforeseen expenses. This results in higher renovation costs than anticipated. It's important to avoid this as much as possible. Therefore, always make a thorough calculation that considers all possible options. A building inspection can also provide significant clarity in this regard.
A building inspection gives you complete insight into what needs to be done. There are also things that aren't necessary, but are your own choices. The bathroom might still be in excellent condition and still require a complete renovation, for example, because it better meets your wishes and requirements.
Consider everything and try to tailor your loan accordingly. This will also prevent you from having to repay a loan for longer than strictly necessary. Always choose your loan wisely, paying close attention to the terms and conditions.
The cost of a building inspection (up to 250 m²) is only €489 including VAT. We'll conduct a comprehensive building inspection and you'll receive a building report. Do you have any questions? We're happy to help and can schedule an appointment with an expert inspector right away if you wish!
