Small renovations and maintenance jobs should be financed with your savings. For large renovation projects with an increase in property value, we recommend that you apply for a renovation credit from a construction account starting at 100,000 francs. Once the renovation is complete, the credit is transferred to a mortgage.
Financing a restructuring by raising the mortgage or taking out a new mortgage may be cheaper. However, there is the disadvantage of having to advance 20 percent of your capital costs. Depending on the circumstances, the bank may ask you to reevaluate the property and / or re-check your income when you request a mortgage increase or a new mortgage. This process can lead to worse conditions.
To finance renovations with maintenance or increase in the value of the property, it is also possible to withdraw in advance or commit the pension assets of the pension fund or of pillar 3a. However, this is only possible for the house where you actually live. No financing is granted for luxury renovations.
Depending on the type of renovation, the Confederation and the cantons grant promotion grants for energy-saving construction measures. In addition, in the case of renovations to Minergie standards, it is possible to request additional financing.