A mortgage can allow a household to finance work at lower cost vis-à-vis other types of credit. However, the purchase of the property can sometimes require all the funds, which leaves the household little room for carrying out the work. When this situation arises, is it possible to obtain a mortgage extension?

Mortgage loan: insufficient funds to finance works

When buying a property, work may sometimes be necessary in order to properly arrange the property or to refresh it. However, the works require a predefined budget to ensure their achievements. For this, the household must then reserve part of their home loan to meet the needs of the work. In addition to defining the budget, this credit will make it possible to finance household projects at a lower cost while ensuring the purchase of the property. However, setting a budget using a home loan is only possible when the project is prepared. As a result, a household having used all the funds for the purchase of the property will not be able to meet the needs of the works with the same funding.

Get an extension for your mortgage

To finance work using a home loan, some borrowers are trying to obtain an extension of their home loan in order to finance their work at low cost. However, it is not possible to obtain an extension concerning a mortgage. This particular operation concerns only one defined type of loan (revolving credit) and cannot be extended to other forms of financing. Consequently, the household will have to finance its work with another source of financing. This source can be a work credit or a personal loan but must respect the household debt. In the event of excessive debt, the household may have recourse to a credit consolidation operation. This operation will in particular allow the household to combine all of their debts (mortgage, consumer credit, bank overdraft, etc.) into a single loan with only one monthly payment. This can be reduced in return for an extension of the duration and will allow the household to have a monthly payment appropriate to their situation. Also, the household can benefit from a sum of money intended to finance projects such as works.