You want more space on the upper floor; installing a dormer window can realize that. Often an attic room with a sloping roof becomes a full room after the installation of a dormer window. How do you finance this renovation? Many consumers opt for a loan as financing for this loan goal. We are happy to advise you which loan type is the best choice for your situation. The costs for the purchase and installation of dormer windows can rise. With a loan you can pay the costs per month at a low interest rate.
Personal Loan or Revolving Credit
Do you opt for a Personal Loan or a Continuous Credit? Most people choose a Personal Loan to finance a dormer window. This form of loan provides security because of the fixed interest, duration and monthly charges. You choose a Continuous Credit if, for example, you not only want to finance the dormer window but also want to have extra money in hand that you can then use flexibly. Take into account the fact that the interest is not fixed but is variable.
Tax benefit with Personal Loan
You are eligible to deduct the interest costs if you opt for a Personal Loan and if that loan is intended for home improvement. This tax benefit applies to a Personal Loan that you use for the purchase, improvement or renovation of your owner-occupied home. A revolving credit does not have this tax benefit. You can redeem and redeem any fine on both a Personal Loan and a Continuous Credit.
Purchase by installment
The supplier of the dormer can sometimes buy on installment offer. Arranging your purchase and financing in one place is efficient. But it is an expensive form of financing. The interest that you have to pay is high: the lender sometimes charges 14% interest, the maximum legally permitted rate. And what are the associated conditions? Fine-free redemption is not always permitted. With both a loan and an installment purchase, you pay monthly costs in arrears in interest and repayment. The difference lies in the calculated interest rate and the conditions.
Co-financing with a mortgage
Financing a dormer window with a mortgage was until recently a much-chosen option. With effect from 2018, this is no longer possible, since the maximum amount to be financed for a mortgage has been reduced from 101% to 100%. For renovations and financing the costs of the buyer, the buyer will have to turn to other financing options or use his own money; the increase in your mortgage is a thing of the past.
The disadvantage of financing with a mortgage compared to a loan was the long term (30 years) and interim repayment was not always possible.