How can you finance the purchase and renovation of a home? – You can try to obtain a mortgage that finances more than 100% of the purchase or cover the reform with a personal loan

Finding the dream home is complicated. And faced with this situation, there are not a few who are considering acquiring a property that is somewhat cheaper and, later, reforming it to make the improvements that are deemed necessary. But how can you finance an operation like this if you don’t have savings to pay for it all? According to the bank comparator, you can try to get a mortgage that finances more than 100% of the purchase, cover the reform with a personal loan or live in the house or apartment until you have enough money to pay for the work.

Covering it all with a mortgage is difficult but not impossible

For the client, perhaps the easiest thing would be to take out a mortgage to finance most of the purchase and a portion of the cost of the reform. Getting it, however, is very difficult since banks rarely lend more than 80% of the cost of housing. Consequently, there would be a lack of money to cover the remaining 20% ​​plus the price of the works and an additional 10% to pay the expenses associated with the sale (taxes, notary fees, etc.).

However, a product allows you to carry out this operation: the SUMA Mortgage from With it, you can finance up to 80% of the home’s purchase and get an additional 30% to pay for the reform. And if the works improve the property’s energy efficiency and achieve an A or B rating, the entity can lend an additional 5%.

To be successful, yes, it is essential to enjoy a good economic situation and, in most cases, to be able to provide additional guarantees such as a guarantee or other property. According to, is the only entity that openly offers such a product. However, with other banks, you can try to negotiate so that the mortgage finances a part of both the purchase and the reform.

Mortgage plus personal loan: is it viable?

In the event of not being able to finance the entire operation with a mortgage, the alternative would be to request it only to buy the home and, later, contract a personal loan to pay for the reform. This, however, has two drawbacks: it is possible that the entities refuse to grant that credit and that two installments will have to pay at the same time, so the risk of delinquency will be greater.

Banks, of course, consult the credit history of the person requesting a personal loan. And if they detect that you have a current mortgage, they will think twice before approving the operation since the risk of non-payment will be greater. Therefore, if you opt for this formula, it is essential to present a solvent profile to the bank: have a stable and well-paid job, no other debt apart from the mortgage, etc.

And if this loan can contract for the reform, two installments will have to paid simultaneously: the credit and the mortgage. This increases the risk of not being able to pay the monthly payments, so it is advisable to check, before signing the mortgage and the loan, that the sum of the installments of both products does not exceed 35% of the net monthly income of the holders (the maximum debt ratio recommended by the experts).

You can also buy and wait for a while

In that case, according to HelpMyCash, the applicant can also buy the home with a mortgage and postpone the renovation for a few years. In this way, he determination be able to save to pay for all or part of the work and will be more likely to receive a loan (he will have less outstanding debt). Both options pose added risks to the lending bank, so both are likely to fail.

However, choosing a home in which you can reside in relative comfort is essential until you can carry out the reform. In this sense, from this comparator, they remember that if the property is not acquired to inhabit it regularly, the bank will finance less than 80% of the purchase (60% or 70% at most), so more savings or a loan will needed personnel of more incredible amount to cover the remaining part plus the works.