Is mortgage credit a solution for renovating my home?

As will be the renovation of my house and its credit. Mortgage credit is a credit granted by a credit organization, in general a bank, and which is implied a mortgage registration on a real property of which the borrower or one of the co-borrowers is owner and this in order to guarantee the lender against a possible default in payment.

The mortgage loan contract must be signed before a notary and involves specific costs.


What is a mortgage loan for?

mortgage loan for?

In general, when we talk about mortgage credit, we quickly think of buying a house or real estate (building, land, etc.). This type of allocation accounts for a large part of mortgage credit, but that’s not all, far from it. Thus, mortgage credit can allow a person to borrow a sum of money that he does not use to buy a house but to any other type of transaction.

The use of mortgage credit results from the fact that the borrower has no other guarantee than his house and therefore cannot obtain conventional financing of the installment loan type.


Mortgage credit to finance my renovations

Mortgage credit to finance my renovations

Thus, mortgage credit can perfectly be used to carry out renovations in your home. In this regard, a distinction should be made between:

  • Renovations requiring a building permit: in this case, the borrower must send his building permit and the specifications drawn up by the architect to apply for the mortgage loan. The release of funds will be done in successive waves. The borrower must produce the invoices for the works or a certificate from the architect proving the progress of the works.
  • The renovations do not require a building permit: in this case, the borrower must provide the estimate (s) of the work to submit his credit request. The release of funds will also be made in successive waves with the production of works invoices.


The advantages of CPE

The advantages of CPE

Our company has been present on this market since 1996. Our specialists take the time to analyze your file and offer you the solution that matches your profile. We will give you an answer in principle on your request within 48 hours subject to the perfect accuracy of the information transmitted. Find out more about our mortgage solutions.

Consider these Terms Before Applying for a Credit Card

The bank has its own criteria before approving customers who apply for credit card issuance. In addition to assessing your ability to pay, the bank also considers many other factors. Therefore, customers must know this well if they really want to apply for a credit card

The more supporting factors they have, the more likely it is that they will approve the application for a customer’s card. Then what are the supporting factors? Check out some of the factors that influence bank ratings regarding your credit proposal below.


1. Good Credit Score

1. Good Credit Score

This first factor is important because previous credit card ownership will show that you have a credit score. The bank can monitor your credit history before deciding to approve or reject the proposal submission.

So this track record can be points plus customers who already have a credit card. If the bank judges it well, the customer should have a good credit score too. Conversely, if your credit history is poor, you might need additional points from other factors to get your application approved.


2. Suitable Characters

Basically, humans are created with different backgrounds and characters. Therefore, credit service providers usually give plus points to customers who have character in accordance with specified criteria.

Banks in general also conduct information related to background knowledge of customers who apply for credit cards. The goal is to find as much information as possible to decide whether the customer is the right individual to use a credit card.

Investigating the background of prospective credit card customers is considered important by the bank. Because, honesty, buying behavior, lifestyle and discipline of prospective borrowers in making payments depends on the customer’s good faith in paying their obligations.


3. Payability

online loans

This factor is the main factor to get credit card application approval. Banks will only provide loans to prospective customers who are considered capable of paying their bills. So they will carefully assess the components of your income when the submission process is done.

A credit analyst must be able to know well whether the loan applicant has an adequate source of income. The goal is to ensure that customers can meet their obligations in paying credit bills before the deadline is passed. If you don’t have enough income, your credit application will most likely be declined.


4. The amount of capital

Prospective credit customers are usually asked by the bank to show the assets of their assets. Another way for banks to see the amount of the applicant’s capital is through the company’s credit applicant’s work sheet. Why do banks?

Therefore, the purpose of the bank to do this is to see how much capital the applicant has. Basically, credit service providers will not provide loans to applicants who do not have their own capital or customers who have minimal assets.


5. Guarantees Provided

Benefits of Having a Credit Card

Banks will not simply give loans without collateral provided by the credit applicant. Because, collateral is the last solution to solve the problem of customers who are no longer able to pay their credit debt.

The amount of loan funds that can be given by the bank is around 75% of the total collateral given. Therefore, the greater the guarantee given, the greater the credit card limit the applicant will accept.


6. Data Completeness

This last factor is the easiest factor to complete. Remember that customers do not need to provide facilitation payments so that the submission process runs smoothly. The reason is, even if you complete the requested documents, the credit card submission proposal still risks being rejected if the bank thinks you are not a suitable person to be a credit card holder.

Besides the capital factor, the guarantee factor is the main determinant of the approval of your credit card issuance. The completeness of the data is only aimed at looking at the background, such as whether the age of the customer is eligible to have a credit card.


Fulfill All Requirements for Receiving Submissions

4. Need for Additional Credit Cards

To be approved by a bank credit card, of course you must meet all the requirements requested. Therefore, study these requirements in as much detail as possible. In addition, you can also ask a friend who already has a credit card about what requirements make a credit card application accepted.