Earlier, a "big incident" occurred in the online decoration industry. It was caused by a public housing tenant who allegedly spent as much as 300,000 yuan to hire a KOL from the decoration industry to decorate a one-person unit. However, the unit was only over 100 square feet, and another KOL came to inspect the building. At that time, I found many "failed" positions. The owners spent a lot of money but got a mess. Later, many KOLs came to help fix the leaks. Although the incident occurred in a public housing unit, I believe that many owners who have purchased second-hand properties and have decoration experience have thought a lot about decoration matters. After all, a large amount of money has been spent on buying a property, and decoration Expenses are often quite "fluctuating" and are the most volatile part of the owner's budget before moving in. If funds are needed for emergencies, is there any way?
When you need money for renovations, the most common thing you think of is borrowing from people around you. In fact, owners can also try to apply for a renovation loan from a bank without collateral. The advantage is that the loan amount is relatively high, but the annual interest rate is also relatively high. Some banks offer renovation mortgages with a repayment period of up to 60 months.
You can apply for interest-free loans from the government
Another less-mentioned one is the government's interest-free home maintenance and renovation loan. Eligible applicants can apply for a renovation loan from the government, but note that it is only available for private residences and the units are over 30 years old.
In addition, applicants cannot own more than one property, and the owner cannot borrow in the name of a company. The maximum amount can be borrowed is 50,000 yuan. Although the amount is not large, the biggest advantage of the relevant loan is that it is interest-free, and the repayment period is up to three years.
After applying for a mortgage, the owner can also try to apply for a loan to pay for renovation costs from the bank that approved the mortgage. Some banks will be willing to provide private loans to the owners, and the approval is not as strict as property mortgages.
Generally speaking, a loan can be approved as long as the monthly repayment does not exceed a certain percentage of the loan applicant's monthly income.
Of course, banks will look at the applicant's financial situation, salary and credit rating when approving a private loan. However, since you have successfully applied for a property mortgage, it is not too difficult to apply for a private loan again.
Don’t take out a loan before getting approved for a mortgage
Some readers may wonder, why not apply for decoration expenses in advance before applying for a mortgage? This is because if you borrow money earlier than applying for a mortgage, the bank may think that the owner's loan is used to pay the down payment, which may affect the bank's mortgage approval.
In addition, since the owner has a loan, the bank will include the loan into the payment-to-income ratio when approving the mortgage, which may affect the maximum mortgage ratio that the owner can borrow.
In addition, due to the fluctuations in the property market, the valuation of second-hand properties will change from time to time. If the "under-borrowing" is discovered only at the last minute, the owner will get into trouble.
Therefore, if you want to borrow a loan from a bank, or want to borrow more for decoration purposes, remember to act only after your mortgage application is approved.