Do you want to take out a loan to build or renovate your home? The opening of credit allows you to ensure that the repayment of your credit follows the progress of your work. Your lender provides you with the amounts you need, when you need them. As long as you have not used the credit in its entirety, you only repay the interest on the part of the capital already released by your lender. You will begin to repay the capital at the time provided for in the agreement signed with your lender.
Good to know
Your bank may charge you a reservation fee to keep your credit balance available.
Advantages and disadvantages
While waiting to be able to move into your new home, you only pay interest on the capital you have used. And, generally, you only start to repay the capital when it is completely released. Your financial burden for your new home is therefore reduced.
However, your lender generally provides a time limit to use all the capital. This limit is usually 12 months, and can sometimes be extended. Beyond this period, even if you have not used all the capital, you will have to start paying full monthly payments with interest and capital.
