Renovating a kitchen, insulating a home, redoing a bathroom or upgrading a heating system… In Switzerland, a home improvement loan can be a valuable solution when costs spiral: the final amount often exceeds the initial estimate. Between unexpected issues, delays and labour costs, you quickly face a simple question: how to finance without stress, without dipping into your savings, and without getting lost in complex paperwork?
This is precisely where a home improvement loan can make all the difference. It enables you to finance a renovation project with a fixed monthly payment, a defined term and a generally faster approach than other solutions. In this article, we'll explain exactly what a home improvement loan is, what it can cover, how it can be used and how it can be used. choose the right amount, and how it compares with mortgage credit.
What is a home improvement loan?
A home improvement loan finances the cost of renovating, fitting out or converting your home. So you stay in control of your budget. What's more, you can get started on your projects more quickly. Finally, you improve your day-to-day comfort. In practice, in Switzerland, this most often involves a personal loan (or personal loan) used to pay for work, materials and sometimes even ancillary expenses.
This type of financing is appealing because it’s easy to understand: you borrow an amount, repay it over a set term, and you know the total cost and monthly payment in advance. This gives you a clear view of your budget, which is especially helpful when expenses are spread over several weeks or months.
The key points of a credit for building work
- Flexible financing For a single item (e.g. window) or a complete renovation.
- Fixed monthly payments : you plan your budget more easily.
- Often rapid procedure A practical solution when work has to start quickly.
- Not necessarily “stuck” on a quote Depending on the solution you choose, you'll have a margin for unforeseen events.
In short, credit for building work is a financing solution designed for the reality of building sites: expenses that are sometimes imprecise at the outset, but a need for budgetary control.
What types of work can be financed?
The benefit of a home improvement loan is that it can be used for a wide range of projects. You can use it for visible renovations (kitchen, painting) as well as more technical upgrades (insulation, heating). It’s also practical when you need to finance several items at the same time.
Here are some common examples of work that can be financed:
- Interior renovations : kitchen, bathroom, floors, paint, electricity, lighting
- Energy improvements : windows, insulation, heating, thermal optimization
- Structural work : roofing, facade, restoration after damage, sanitation
- Fittings : room creation, home office renovation, custom storage
- Outdoor terrace, fencing, access, garden (depending on nature of expenditure)
An important point: when we think of renovation, we often think only of the craftsman's bill. However, a renovation project almost always includes ancillary costs A construction loan can also be used to smooth out these expenses, especially if you don't want to pay for everything at once.
How to determine the amount of your home improvement loan?
Choosing the right amount, This is often the most delicate stage. Too low, and you risk getting stuck on the job. Too high, and you needlessly increase the total cost. The aim is to strike a balance: finance the essentials, keep a margin, and maintain a comfortable monthly payment.
1) Set a realistic budget
Start by listing exactly what needs to be financed. Ideally, you should ask for 2 or 3 quotes if possible, especially for major jobs. Next, structure your budget by item:
- labor (craftsman, general contractor)
- materials (tiles, paint, furniture, etc.)
- delivery / disposal costs
- any technical adjustments
- finishes
Even if you don't have all the estimates yet, this approach gives you a solid basis for estimating the amount of a credit for the work.
2) Allow for unforeseen circumstances“
The unexpected is part of the job: walls that hide a problem, installation to be adapted, materials unavailable... A margin of around 10 to 15% of the budget is often used as a benchmark. The idea is not to borrow excessively “just in case”, but to avoid running out of money because of an expensive detail.
3) Calculate a comfortable monthly payment
The best credit for building work is one you can repay without pressure. Before choosing a term, take a clear look at your monthly budget:
- rent / mortgage
- insurance
- current expenses
- any other credits
- safety margin
A simple rule: your monthly payment must remain compatible with your daily life, even if the unexpected (health expenses, temporary drop in income, etc.).
4) Adjust the duration to your goal
A longer term reduces the monthly payment, but often increases the total cost. A shorter term generally costs less in the end, but requires a higher monthly payment. The right compromise depends on your situation: income stability, other commitments, desired level of comfort.
In short, to determine the amount of a home improvement loan, start with concrete figures (quotes), keep a realistic buffer, and then set up repayments that remain easy to manage day to day.
Home improvement loan vs. mortgage loan
When you own a property, one question comes up quickly: should you finance with a home improvement loan or with a mortgage loan? Both options exist, but they don’t meet the same need—or the same level of urgency.
Mortgage credit, or increasing a mortgage, is suitable for certain projects. In fact, it becomes interesting when the amounts are high. What's more, you need to have a sufficient mortgage margin. In this way, you can finance major works with greater peace of mind. On the other hand, it often involves longer, more technical procedures: analysis of the situation, conditions linked to the property, and a more cumbersome administrative process.
On the other hand, a home improvement loan is all about simplicity: financing a project quickly, with a fixed monthly payment, without changing your mortgage setup. It’s often chosen when you’re looking for:
- a solution fast
- an approach lighter
- use more flexible funds
This comparison does not mean that there is an absolute “best” option. The idea is to choose the solution that is most consistent with your project, your schedule and your ability to repay.
A home improvement loan is a simple and fast solution to finance your projects without the constraints of a mortgage loan!
Why choose a home improvement loan rather than a mortgage loan?
In many situations, a home improvement loan becomes the simplest and most practical option—especially if you want to move forward quickly and keep a certain level of flexibility.
More freedom and fewer constraints
Credit for building work is generally less tied to a strict real estate framework. You can finance renovations, but also ancillary costs and adjustments during the course of the project. This flexibility is invaluable, because a project almost never goes “exactly as planned”.
No notary visit
A frequently mentioned advantage: a home improvement loan generally doesn’t require a visit to a notary. This avoids extra steps and makes the process smoother. For anyone who wants to renovate quickly, it’s a real plus.
Useful if your mortgage is already maxed out
Some people have already reached their maximum mortgage capacity, or simply don't have enough margin to increase their mortgage. In this case, the mortgage credit may be difficult (or even impossible) to arrange. In this case, credit for the work can be an alternative, subject to acceptance and repayment capacity.
Fast granting
When you're planning a project, timing is everything. What's more, sometimes you have to order materials immediately. Sometimes, too, you need to act quickly after damage or a technical emergency. In such cases, a construction loan can be put in place more quickly. In this way, you can start work without blocking the site. The deadline for granting funds is 14 days. depending on your file and the process.
A clear monthly payment, a controlled budget
Finally, a home improvement loan is often appreciated for one simple reason: clarity. You know your monthly payment, your term, and your repayment budget. This lets you renovate while keeping a clear financial course, rather than “patching things together” with multiple payment sources.
Steps to get a home improvement loan
Obtaining credit for the work doesn't have to be complicated. The important thing is to take things one step at a time, without rushing, and with clear information.
1) Clarify your project
Even if not everything is finalized, note :
- what you want renovate
- a budget estimate (quote if possible)
- your ideal timetable (start of work, payments)
This step helps you apply for a home improvement loan that makes sense, and avoid choosing amounts “at random.”
2) Define the amount and duration
Choose a realistic amount and a term that gives a comfortable monthly payment. Keep in mind that the objective is not just to obtain financing, but to repay it with peace of mind.
3) Make a request
Applications can often be made quickly online or with the help of an advisor. Depending on the organization, you may receive a proposal tailored to your profile and project.
4) Analysis and proposal
The credit intermediary evaluates your application, including your repayment capacity. If everything is in order, an offer is presented to you with the conditions: amount, term, monthly payment, rate, total cost.
5) Validation and release of funds
Once the offer has been accepted and the elements validated, the funds can be disbursed according to the agreed terms. You can then pay down payments and invoices, and get on with the job.
Practical tip: gather your main documents in advance (ID, proof of income, main expenses). This simplifies the process and reduces the number of return trips.
Our conclusion on the home improvement loan
Credit for work is an effective solution for financing a renovation without turning your budget into a headache. It responds to a very concrete need: to move forward with your project with a stable monthly payment, a simple approach and clear visibility of the cost.
It is particularly useful if you want to :
- get your renovations off to a flying start,
- leave room for the unexpected,
- avoid the more cumbersome procedures associated with a mortgage,
- or finance work even when your mortgage is already at its maximum.
Before committing yourself, take the time to estimate the right amount, It's important to choose a consistent term and a transparent approach. A well-calibrated construction loan is often the difference between a job that's been put on hold... and a project that's been carried out calmly, from the first estimate to the final finish.