Do you want to live better in everyday life and energetically renovate a house or apartment after a few years? A good decision! If you modernize your own four walls now, you will reduce the high additional costs and increase the value of your property.
Remodeling, renovation, and modernization cost a lot of money today – usually even more than your own budget allows. If you want to individually upgrade and save your home despite the lack of savings, a cheap modernization loan is an ideal solution.
Many banks today offer special modernization loans for renovation, renovation or the energy-efficient conversion of real estate. In contrast to classic installment loans with free use, however, this is usually a dedicated loan. As a rule, however, this also means – a better effective annual interest rate or the best-tied borrowing rate.
Whether new windows, modern, efficient heating systems or age-appropriate conversions: as cheap modernization loans per se are – it pays to get as many offers as possible and compare them exactly. Read here what you as a homeowner should look out for, when you can apply for government funding and in which cases alternative financing is available.
Modernization loan – what is it exactly?
With a modernization loan, property owners can modernize, energetically refurbish or generally get their aging property back on its feet. In principle, a refurbishment loan is like an ordinary installment or consumer loan.
However, the borrowed money is always tied to a purpose – you can and may only use it for the intended modernization and renovation projects. Your advantage: Interest rates are significantly lower compared to the vast majority of installment loans for consumption purposes.
Inexpensive renovation loan – here consumers get it
Banks usually only grant special modernization loans to property owners. The corresponding property serves as security and usually, a land register extract is required for the loan application.
A prerequisite for any modernization project and saving interest is the best creditworthiness and sufficient income of the applicant. However, your own home does not have to be debt-free so that the money and the good annual percentage rate end up in the account.
Modernization loans are therefore also possible if you wish if you currently have mortgage lending for which you are currently paying off monthly fixed installments.
Modernization and renovation loan – what is feasible?
What is a modernization loan suitable for? As a rule, such a loan is intended for construction measures that increase the value of your property in the long term.
This starts with simple bathroom and cellar renovation, extends to the new kitchen and the new heating, an energetic optimization through heat-insulating windows, doors, and roofs, to the energy-saving new heating or other larger projects. Even extensions such as a garage, carport or conservatory are included here. Everything that increases the value of your house or condominium.
Editor’s tip: Banks often also offer renovation loans to maintain the property’s value. This can be used, for example, to finance the costs of new floors and ceilings or general cosmetic repairs.
Apply for a modernization loan in short steps – very easy
Austria’s consumers are now getting a modernization loan easier than you think. Even without bureaucratic obstacles. In contrast to the classic real estate loan or building loan, no security in the land register is necessary for a modernization loan. With short, simple steps, you can usually call up the required amount on the account just days later:
- Plan modernization and refurbishment very precisely: As with any construction project, the most exact planning of the financing needs are at the beginning. This serves your own financial security and makes it easier to apply for a loan from the bank. In this way, you create clarity for everyone involved and avoid additional financing at a later date.
- Explore all conditions carefully: One crucial point: Explore as many offers as possible for your renovation loan and their loan terms. Our modernization loan comparison on Good Credit offers you the best opportunities here. Get the right modernization loan values, you have a quick overview of all non-binding top interest rates with just a few clicks: Enter the required loan amount, desired term and purpose and compare the best offers from current credit providers and their conditions – it’s very easy.
- Pay attention to services and additional expenses: Have you found the right offer? Then nothing stands in the way of the application to the desired bank. In addition to interest and monthly installments, you should keep an eye on additional services and possible additional costs. Renovation loans are generally available free of charge today, and the following applies in particular: free special repayments are a must – so you can include money in the financing at any time and therefore pay off the loan faster and more cost-effectively. Important: Banks often waive early repayment fees for special repayment rights and early repayment of the loan amount – this can save you a lot of money.
- Have your modernization loan paid out quickly: in most cases, the money is already in the account within a few days. However, there are differences in the evidence on the use of the loans. For example, many banks require craftsman invoices or other evidence of their own work for renovation and refurbishment. However, receipts and proof of purchase are usually sufficient, for example when purchasing materials.