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What are the main differences between a loan and a mortgage for restructuring?

Apply for renovation

Apply for renovation

For those who decide to carry out a renovation on their property and need to apply for financing, there are two different options: on the one hand there are loans for renovation, on the other there are loans for renovation.

To evaluate which solution is best suited to your needs, the first thing to do is to analyze the main differences between the two different loans.

The key difference between loans and mortgages for restructuring consists in the diversity of the amounts disbursed : in the case of loans, the amounts granted usually do not exceed 50,000 USD. With a mortgage it is possible to obtain higher amounts but, at the same time, the costs to be incurred are higher.

The activation of a mortgage for restructuring requires the appraisal (with an average cost between 200 and 300 USD, also variable in relation to the number of assessments necessary) and the deed drawn up by the notary to finalize the mortgage (the cost of which is linked at the value of the mortgage registration). In addition, as for the first home purchase mortgages, also for the restructuring mortgage it is necessary to take out an outbreak and fire insurance coverage, mandatory to obtain the required amount.

The second point to be taken into consideration concerns the different timing of disbursement : in the case of a loan, since the bureaucratic process is more streamlined, financing can even be granted between 24 hours and 15 days, also because, in general, the guarantees required are less. For the mortgage, the times are longer, also in relation to the preliminary investigation.

Examine are the disbursement methods 

Examine are the disbursement methods 

In the case of a loan, the amount is disbursed in a single solution. As regards the mortgage, it is possible to obtain the so-called Sal mortgage (Progress of Works), with the disbursement of the amount in different tranches, each issued by the bank only after an expert has ascertained the new value acquired by the property at ‘advance work.

To find out more about the features of the loans for restructuring, please consult the specific guide dedicated to restructuring loans on our website, with indications on the elements of the contract, any guarantees, evaluation criteria and early termination options.

If, after being informed, you want to try to see which are the best loans for restructuring, consult the section of the site dedicated to the best loans of the day.