- PERSONAL LOAN
- loan is income based
- higher monthly installments due to steeper payback pace
- payback in ca 5 – 10 years
- no valuation / mortgage loan advice / notary office costs
- interest paid can be subject to tax relief
- MORTGAGE LOAN
- loan is income & market value based
- payback mostly in 30 years
- cost of valuation (or if allowed, desktop / WOZ), mortgage loan advice costs a.o notary office costs
- lower height of monthly installments
- interest paid can be subject to tax relief
General considerations – if the loan amount is relative small and you want to pay off the loan a.s.a.p. it could be best to choose for a personal loan. For substantial renovations of large amounts it could be best to choose for a mortgage loan.
If you want us to help in this area please call for a free of charge video call in which we can assess your specific situation.