The best way to pay for a major renovation: discover tips for financing your work.
Whether you are an owner or a tenant, undertaking renovation work in your home is often necessary to improve your comfort, optimize energy performance, or even upgrade your property. Still, these projects can be a significant cost, especially if you’re planning a major renovation. It is therefore essential to plan and organize their financing well to avoid unpleasant surprises. Discover the different options available to you to finance your work and choose the best solution for your situation.
Financial aid to finance your renovation work
There are many financial aids offered by the public authorities, local authorities or even certain companies, in order to help individuals carry out their renovation work. This support can take different forms:
The energy transition tax credit (CITE)
The CITE is an aid intended for owner-occupiers, tenants or occupants free of charge who carry out energy improvement work in their main residence. This system allows you to benefit from an income tax credit equal to a percentage of the amount of the expenses incurred for this work (up to 30%). To be eligible for the CITE, the work must concern thermal insulation, heating, ventilation or the production of renewable energy.
Subsidies from the National Housing Agency (Anah)
Anah offers subsidies to finance renovation work aimed at improving the comfort and energy performance of housing. This aid is intended for owner-occupiers, landlords or condominium associations. The eligibility conditions vary according to the type of work, the amount of household resources and the level of energy performance achieved after the work.
Aid from local authorities
Some local authorities (regions, departments, municipalities) also offer financial aid to support renovation projects in their territory. This aid can take the form of grants, zero-interest loans or even specific tax measures. To find out about the aid available in your region, do not hesitate to contact your town hall or your regional council.
Financing solutions for your renovation work
In addition to the financial aid mentioned above, several options are available to you to finance your work:
The use of a home loan or a work loan
Using a bank loan is a common solution for financing a major renovation. You can take out a home loan if you are a homeowner, or opt for a personal loan work dedicated to this type of project. Interest rates and borrowing conditions vary according to the banking institutions, so it is recommended to compare several offers before making your choice.
The use of personal savings
If you have sufficient savings and have saved some money, using your savings to finance your work can be an attractive option to avoid taking out a loan and paying interest. However, it is advisable to carefully assess the share of your savings that you wish to mobilize for your project, so as not to compromise your financial security in the event of the unexpected.
The participation of relatives and crowdfunding
Appealing to family or friend solidarity can be a solution to supplement the financing of your work. You can solicit donations or loans from your loved ones, or even turn to crowdfunding platforms specializing in the financing of real estate projects.
The key steps to successfully finance your major renovation
To put the odds on your side and finance your renovation project as well as possible, here are some practical tips:
Establish a detailed provisional budget
Before starting your work, it is essential to draw up a precise provisional budget, taking into account the costs related to labour, materials, as well as any equipment or vehicle rental. Do not hesitate to ask for several quotes from different professionals to obtain a more accurate estimate of the amount of your work.
Anticipate the unexpected
To avoid unpleasant surprises, remember to include a safety margin in your estimated budget, in order to deal with any unforeseen events (delays, additional costs, etc.).
Optimize costs
Some tips can help you reduce the cost of your renovation project, such as:
- Take advantage of promotions and private sales to buy your materials;
- Ask a local professional to limit travel costs;
- Combine several work projects to benefit from advantageous rates.
The interest-free loan (PTZ) is an advantageous financial device that allows owners to finance part of the energy renovation work on their home. In this article, we will explain in detail the conditions of eligibility, the types of work concerned and the steps to follow to benefit from this loan.
Work eligible for the zero-rate loan
To be eligible for the PTZ, the renovation work must relate to one or more of the following areas:
- Energy renovation: thermal insulation of attics, exterior walls and low floors, replacement of windows, installation of controlled mechanical ventilation (VMC), etc.
- Installation of heating or domestic hot water production systems: condensing boiler, heat pump, solar water heater, wood stove, etc.
- Works related to renewable energies: installation of photovoltaic panels, solar thermal panels, geothermal systems, etc.
- Improvement of the overall performance of the habitat: work to achieve a minimum level of energy performance, defined by the State according to the geographical location of the accommodation and its date of construction. This generally involves achieving primary energy consumption less than or equal to a threshold set by the regulations.
The work must be carried out by qualified professionals and comply with the standards in force to be eligible for the PTZ.
The eligibility conditions for the zero-rate loan
To qualify for the PTZ, you must meet several criteria:
- Be the owner of your main residence: the PTZ is reserved for people who occupy their accommodation as their main residence, ie they live there at least eight months a year.
- Do not exceed a certain level of resources: the PTZ is granted subject to means testing. The maximum amount of the household’s annual resources must not exceed a ceiling set by the State according to the number of occupants of the accommodation and the geographical location of the property.
- Have an eligible work project: the work must be carried out within two years of obtaining the loan and concern one or more of the areas mentioned above (energy renovation, installation of heating systems, etc.).
The amount of the PTZ granted depends on several factors: the total cost of the work, the geographical location of the accommodation, household income, etc. Generally, the amount of the PTZ is capped at a percentage of the total cost of eligible work, within the limit of a maximum amount set by the State.
It is important to note that the PTZ cannot finance all of the work: it must be supplemented by one or more other loans (classic mortgage, zero-rate eco-loan, etc.) or financial aid (credit from energy transition tax, aid from Anah, etc.).
The steps to obtain a zero interest loan
To benefit from the PTZ, you must follow the following steps:
- Evaluate your needs and define your work project: identify the work needed to improve the energy performance of your home, taking into account the eligibility criteria for the PTZ.
- Get quotes from qualified professionals: ask for several quotes from companies or craftsmen recognized for their competence in the field of energy renovation work. Make sure they hold the required certifications and qualifications (RGE, Qualibat, etc.).
- Build your loan application file: gather all the documents necessary to constitute your loan application (work estimate, proof of income, etc.) and complete the PTZ application form, available from the partner banking establishments of the system.
- Submit your loan application: send your complete file to the bank of your choice, which is responsible for examining your request and checking your eligibility for the PTZ.
If your application is accepted, you will have to sign a loan offer within the time allowed and respect the conditions of engagement linked to the PTZ (completion of the work within two years, occupation of the accommodation as a main residence, etc.).
The zero-rate loan is an interesting device for financing part of the energy renovation work on your home. To benefit from it, you must own your main residence, carry out eligible work and not exceed a certain level of resources. The steps to obtain a PTZ are relatively simple, but it is advisable to be well informed and to compare the offers before committing.
In conclusion, financing a major renovation requires good planning and an in-depth study of the
different financing options available. Do not hesitate to seek professional help or
specialized organizations to support you in this process and find the solution best suited to your
your needs.
