Loan for modernization – where to get it quickly
Homeowners know how to sing a song about it. Regardless of whether you want to install thermal insulation, replace the roof or install a modern heating system, every modernization costs a lot of money and not everyone creates sufficient reserves to pay for the modernization. A loan for modernization can often be the alternative if the modernization is not to be put on the back burner.
The loan for modernization is a very special loan that is designed and provided for precisely this purpose. As a rule, these are investments in your own four walls that are worthwhile because the living comfort and the value of the property can be increased.
In addition, modernizations often lead to cost savings in operating costs, and electricity and water are saved, which means lower ancillary costs.
What to take credit for modernization
Low-cost construction finance is only granted by banks from an amount of 50,000 euros. If the cost of the planned modernization is less than 50,000 euros, the modernization loan can be the best choice. However, one should bear in mind that if an existing loan contract already exists with the house bank, an increase in the loan is also possible and maybe even cheaper. Here it depends on the negotiating skills of the individual.
In addition, one should bear in mind when planning that there are certain criteria for modernization that must be met in order for the bank to issue a modernization loan on favorable terms. When it comes to just maintaining a property, one cannot necessarily speak of modernization, and even if you only want to buy new furniture that is modern, it is far from modernization.
In the case of a modernization, structural changes have to be made which either serve to improve living comfort, such as modernizing the sanitary facilities or to save energy. In other words, those who only intend to renovate and buy new furniture will not get a modernization loan. But if a new bathroom or modern heating system is installed, it is a modernization that can definitely be realized with a modernization loan.
Modernization loans are granted quickly
In contrast to traditional home financing, modernization loans are processed very quickly by the banks and are usually paid out within a few days. In addition, there is no entry in the land register. You remain flexible with terms because there is also the option of staying under 60 months, which is not possible at all with classic construction finance, for example.
A loan for modernization is usually granted after the presentation of the current earnings statements and a certificate that the property itself is being used. If requested, modernization loans can be repaid and redeemed early without paying a high prepayment penalty to the bank.
There is state funding for some modernization measures, the funds are provided by the municipalities and / or KfW, the planned measure is aimed at saving energy and / or using renewable energies. You should inquire about the individual measures through your house bank.