All about the work loan.
Subscribed to by a credit institution, the works loan constitutes a financing solution suitable for any renovation, development or decoration project for a house or apartment.
You can count on this loan to support the big expenses related to the modifications aiming to improve your comfort of life, and this, whether you are a tenant or owner of a main or secondary residence.
Understanding the principle of work loan
The work loan is a sum of money that the credit institution lends to an individual wishing to undertake essential work such as anti-humidity treatment or repairing the roof, interventions linked to comfort of life such as improving the system of insulation or fitting out a shaded terrace.
The works credit will be suitable for a property used as a primary, secondary or leased residence. Realized according to the rules of the consumer credit, the works credit allows you to borrow up to $ 75,000 for a repayment period between 12 to 60 months. After signing the credit contract, you have 14 days of refractory delay and will not have to pay a penalty if you make an early repayment not exceeding $ 10,000 per year.
Works loan: grant conditions, interest rate, repayment terms
To benefit from a construction loan, you must meet the conditions imposed by your bank, among other things, stable sources of income, regular financial behavior and acceptable debt capacity, as is the case with car loans. So, from the online simulation of your work credit, you will indicate the amount you want to borrow, as well as the repayment duration that suits you, and the calculator will do the rest to provide you with the fixed annual effective annual rate (APR) for this loan.
This APR serves as a reference value for any consumer credit and informs you of the overall cost of the loan, taking into account the nominal rate, the application fees and related costs. With regard to repayment terms, the works loan contract confirms that repayment will be made by means of fixed monthly payments, the number of which will depend on the total cost and the duration of the credit.