November 24, 2019

Loan for renovation

 

A renovation is often a very expensive affair. In addition, this project has the reputation of always costing more expensive than previously calculated. Depending on the measures to be taken to renovate your own housing, it may be necessary to obtain a loan for the renovation. Such loans tend to be long term in nature and very similar to real estate financing in terms of interest rates and other terms. An editorial over at otagorally.net

Which loan is eligible?

Which loan is eligible?

First of all, it should be calculated as precisely as possible, which costs can be expected in the course of the renovation. If only relatively small investments are involved, a normal installment loan is already sufficient to finance all the work involved. However, if you would like to renovate your entire house and do not want to completely finance it yourself, you will not be able to avoid a loan for the renovation.

Many banks offer special loans for this, mostly in the context of real estate financing. Due to the high amounts, these loans are long-term loans whose maturities can be several years or even decades.

In addition to the costs of a renovation but also bring some benefits: annoying repair costs are avoided and the value of the building sustainably increased. In addition, additional financial leeway is created if, as a property owner, you can not immediately cover the entire financing burden and instead agree on the lowest possible installments.

A first point of contact for financing is therefore institutions with real estate financing, which specialize in such offers. Special loans for the renovation are there sometimes even with smaller amounts, which is why not necessarily a land register entry to collateralize the loan is needed, as would be the case with a normal real estate financing. In addition, it is usually not necessary to already have a savings account.

Basically, there should be a precise comparison of the different offers available on the market. Various loan portals on the Internet offer comparison possibilities in which the conditions of different mortgage lenders are compared with each other, whereby a good overview of the conditions for loans for a renovation can be achieved.

Special loans for energy renovation

Special loans for energy renovation

Anyone planning more than cosmetic repairs in the course of the renovation can also get their project supported. This concerns above all such measures, which are carried out in the course of an energetic renovation, so in the long term to reduce the energy expenditure of the property. Such measures include, for example, thermal insulation, window replacement and the installation of new heating techniques such as more efficient heat pumps.

In such projects, for example, the Intrasavings bank can be a financing partner, which provides special funding programs for this purpose. These support programs are offered in the form of particularly favorable loans. The effective interest rates for such a renovation loan are very low. In addition, depending on the program, repayment subsidies can still come and the repayment term can be extended to up to 30 years. During the term, there is also a fixed interest rate over a period of 10 years, with which one’s own financial planning can be better calculated.

If a certain Intrasavings bank Efficiency House standard is reached in the course of the restructuring, higher repayment subsidies are also to be expected. For example, a Intrasavings bank Efficiency House 70 provides the owner with a repayment allowance of as much as 10% of the loan amount

Intrasavings bank programs can in most cases be applied for if you are the owner of the property to be renovated or if you are a tenant with the consent of your landlord. Therefore, before taking on a loan for the renovation, the offer of the Intrasavings bank should be examined. Although the investment costs for energy-related renovations are usually higher, subsidies, subsidies and, not least, lower energy consumption can compensate for this in the long run.

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