Selecting a new kitchen is not a daily activity. Neither do the financing. How are you going to pay for your new kitchen? There are a number of options. Can I co-finance my kitchen with my current mortgage? Or do I take out a loan to pay for the new kitchen? Which form of financing is most often chosen for a new kitchen?
Personal loan most chosen
Most people who need a new kitchen finance it with a personal loan. Not surprising when you see the benefits of a personal loan compared to other forms of financing and borrowing.
A personal loan is characterized by a fixed interest rate and duration . You determine the term of the loan in advance and fix it. The monthly charges are also fixed; they cannot be changed in the meantime. This gives you the assurance that the loan has been fully paid off on the end date of the loan. Interest rate fluctuations during the term of your loan do not affect your monthly amount. A certain feeling. And you can always repay the loan without penalty.
Interest costs tax deductible
A personal loan that is used to improve your own home, such as installing a new kitchen, gives you a tax advantage: the interest costs are tax deductible. This is not the case with a continuous Valmont.
Loan cheaper than increasing mortgage
The interest rate of a mortgage is lower than the interest rate of a loan, but many consumers forget that a mortgage has a long term (certainly in relation to the economic life of a kitchen) and entails extra costs. If you calculate everything, you will come to the conclusion that financing your new kitchen with a loan in almost all cases is cheaper than increasing your mortgage at your current bank.
The most frequently chosen term for a kitchen loan is 10 years. A lot shorter than the term of a mortgage. If you take out a loan you have no extra costs to the mortgage adviser or notary, but with a mortgage you do. In addition to these costs, the bank may have included in the conditions that there are costs associated with raising the mortgage. This is not the case with a loan.
Our advisors can make a calculation for you free of charge and free of charge so that you can also take out a personal loan for your new kitchen at a low interest rate and with favorable conditions.
Do you want to renovate more than just a new kitchen?
Take out a personal loan with a higher loan amount if you are going to renovate more than just your kitchen. With a special homeowner personal loan, this higher loan amount is possible and you have tax benefits; the interest costs are deductible. A great option if you want to invest in your home.
Concluding one large loan amount is always cheaper in terms of interest than the interest rates of various small loans. And do you have a financial windfall in the meantime? Then you can repay your loan free of charge.
As a homeowner, it is always good to delve into the possibilities of renovating or renovating; owning a house requires maintenance. Thanks to renovations such as a new kitchen or bathroom, an extension or dormer windows, you can even increase the value of your home. In any case, avoid overdue maintenance and thus decrease the value of your home. This prevents a lower asking price if you want to sell your house and it does not benefit your living pleasure.
How much can you borrow?
Are you curious about how much you can borrow for a new kitchen or for a larger renovation? Our advisors can make a personal proposal for a loan that fully meets your wishes. Contact us and request a free quote. We are happy to help you because it is not easy to put together the most suitable loan yourself. We ensure that, in addition to taking out the best loan, you also make optimum use of the possibilities of tax deduction.