The rule of thumb in practice is: Smaller conversion or renovation projects – such as bathroom or kitchen – can be financed directly by increasing the mortgage. For larger more comprehensive projects, such as a complete refurbishment, construction financing is required.
In this case, the bank sets up a special construction account, which is used to process all payments for craftsmen, planners, suppliers, etc. The client advisor responsible releases payments for invoices that correspond to the work mandate, have been approved by the architect or building trustee and are countersigned by the client. In order to increase a mortgage or qualify for construction financing, financial affordability requirements must be met.