Include consumer credit in a home loan

Find out how to add an amount comparable to a consumer loan in your mortgage, an amount dedicated to financing works or even cooking.

What can you include in a mortgage?

What can you include in a mortgage?

When a buyer of a house, a building or an apartment applies for a mortgage, he has the possibility of financing both the acquisition and the works, it is simply necessary that the project is financed in one mortgage and that the amount be at least 75,000 euros. Otherwise, if the borrower wishes, he can finance his work separately with a consumer loan but it will be a shame not to take advantage of the mortgage rate to include this envelope in the financing.

Thus, the mortgage can only finance two things, either together or separately:

  • A real estate acquisition
  • Works

We can therefore include in the mortgage everything that relates to the work that will be done in the house, we sometimes speak of reserved work. It can be the purchase of materials or the quotes of craftsmen, it will obviously be necessary to provide supporting documents to the banker so that the sum is included in the home loan.

Can we include a car loan or a personal loan in the mortgage?

Can we include a car loan or a personal loan in the mortgage?

The answer is no, simply because the purchase of a car does not report to the nature of the mortgage, namely to finance a property acquisition (and not movable) or work in the same house or apartment. For the personal loan, the principle is the same, this financing is granted without proof of use of the sums, which goes against the mortgage which must report to works. The borrower can very well ask for a very large free sum and finance recreation or any other project.

Important note : it will be possible to add projects such as a swimming pool or even a kitchen to the mortgage. These elements will create value for the home and above all will be added to the real estate, so these are sums that can be included in the financing, it is particularly necessary to use quotes or purchase orders to justify the amounts.

Combine consumer credit and home loan

Combine consumer credit and home loan

If the financing of the work can be done at the time of the subscription of the mortgage by adding the desired amount with the presentation of supporting documents, it is however no longer possible to add anything to the loan when it is in progress reimbursement. The only solution is to use a home loan buyout which will allow you to start on a new contract and include the amount of work in this financing.

In addition, if a borrower wants to smooth a home loan with consumer loans, that is to say, group everything in a single contract, he can then use credit consolidation. The interest is to be able to combine several loans into one to take advantage of a fixed rate but also to be able to add an additional amount, to finance a personal project (car, furniture) or a work project related to housing (cooking, work of all kinds).

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