If you are thinking of renovating your home and therefore incurring a mortgage to carry out the comprehensive renovation in the short term and, in addition, you want to know what aid is in force for the rehabilitation of the home in 2021, read on! In addition to different financing options, we have the current Recovery Plan, which aims to regulate aid for works to improve energy efficiency and sustainability in single-family homes and buildings of collective residence typology. Both homeowners’ associations, construction companies and owners and energy service companies can benefit.
Mortgage to carry out a comprehensive renovation?
Although savings are always the first option, today we have access to very interesting options to finance comprehensive renovation. We give you 3 financing options for your comprehensive renovation.
Extension of the mortgage.
Taking into account the current low interest rates, extending the mortgage can be a very interesting option to renovate your home. In addition, it will not involve an extra effort, you will only have to continue paying the same amount for a few more months because it is an extension.
Personal loans.
If, on the other hand, you need a larger amount, the personal loan is the best known and most common method of financing, with a fairly long repayment period, so you can establish an affordable monthly payment.
What is a personal loan? A personal loan is an operation through which the financial institution makes available to the customer a certain amount of money, previously stipulated, through a contract with which the customer acquires the obligation to repay the money within a limited time. The usual requirements to apply for a personal loan are:
- Be of legal age.
- Solvency and stable income, or in other words, demonstrate that the borrowed money can be repaid.
Pre-approved loans.
The best alternative to a personal loan is, without a doubt, a pre-approved loan, in which the customer already has the bank’s “yes” because of their good relationship and trust with the entity. With these loans, the processing process will be much faster; in fact, they are sometimes granted on the same day of your application. Despite its urgency, the APR hardly increases and the price can be quite cheap. In other words, you will have the same advantages of a personal loan but in less time.
What aid is available for the 2021 home renovation?
It is estimated that 9 million homes are in need of renovation works in Spain. To this end, there is a Plan for the Recovery, Transformation and Resilience of the Economy that includes an item of more than 6 million euros for urban regeneration between 2021 and 2023, with the aim of reducing the environmental impact of the real estate sector. The Recovery Plan establishes that this aid for the renovation of buildings to improve their energy efficiency will not count as income in the taxable base of the income tax return. Five of the six subsidies included in the decree-law are intended for the rehabilitation of neighbourhoods, buildings and homes to improve their energy efficiency, provided that these activities have started since 1 February 2020. In addition, adaptation works and works to improve accessibility and sustainability will be subsidized. This includes the demolition and construction of new buildings with a minimum B energy rating and all those actions aimed at improving energy efficiency, such as improving the thermal envelope, the installation of new heating, cooling or generation systems. For this reason, it is very interesting to consider the comprehensive renovation to transform it into a passive house, since it also allows you to save up to 90% of energy costs.
