Credit for your modernization

Yes, in many cases it is possible to buy a house, take out construction financing for the purchase price and at the same time also finance the necessary modernization, i.e. to take out the same loan for house purchase and renovation. However, please note: the whole is at the discretion of each individual bank. We can only give you clues according to which a bank decides this. Most of the time, it is possible to get construction finance with modernization loans, provided that the mortgage lending limit of the house is not exceeded to.

The planned modernization measures should have an added value

The planned modernization measures should have an added value.

This is the case, for example, with new windows or a roof renovation – new furniture, on the other hand, is often not enough and is not co-financed by banks through construction finance. The situation is similar if you need the loan for a renovation: the bank will probably want to switch to a normal installment loan for wallpaper and new floors.

Loan for renovation

Loan for renovation

Your home is an investment, and home improvement loans can offer the funding you need to strengthen that investment with renovations, updates and repairs. However, there are risks involved, and not all home improvement loans are the same.

This guide covers the types of home improvement loans available, the costs of a home improvement loan, how to qualify and how to choose the best lender. It is designed to help you decide if accessing your home’s equity or taking out a personal loan for home improvement is a good choice, and offer insight into how you can find the best loan for your needs.

We describe which alternatives are available to you in such a case on our page on the subject of modernization loans. If you are unsure or have any questions, simply contact our installment loan specialists. In a personal, free consultation, they take a close look at your financial situation and provide an assessment of which loan is best suited for your modernization. Simply fill out our financing request and you will receive feedback from our colleagues within 24 hours.

Financing a new kitchen with a home loan

 

The question arises how the kitchen can be financed. Retailers have also recognized this and are offering their own loans directly on site. But these are usually not recommended.

    Merchant loans for kitchen finance: often more expensive, rarely better

    Merchant loans for kitchen finance: often more expensive, rarely better

    Buying a kitchen takes time. The large selection of available models must be viewed and a suitable variant must be found. Afterwards, nobody wants to deal with possible kitchen financing for a long time. The dealers come to meet their customers and offer the appropriate financing on the spot for immediate conclusion. It can hardly be more comfortable. But cheaper: With retailer loans, the interest is often higher than with normal installment loans. Or they are at an attractive zero percent, but then there are also pitfalls. The disadvantages of dealer loans in detail:

    The home loan is the better option compared to the dealer loan. It offers low interest rates on fair terms. With it you can – as the name suggests – finance everything from 5,000 to 50,000 dollars, which makes living more beautiful. It is also possible to finance a kitchen.

    This is how the housing loan works

    In essence, it is an installment loan, but is reserved for homeowners. There is no credit check, the lenders are satisfied with proof of property ownership, for example via a land register extract. The home loan serves measures for your own property, so it is fundamentally earmarked, however, the bank does not request more precise proof of use. The terms of the housing loan can usually be freely agreed. This applies to the term and the monthly rate, but also to the payment modalities.

    With many providers, borrowers can wait up to three months before calling up the approved loan amount for kitchen finance. Another alternative to a home loan: the normal installment loan. No evidence of property ownership is required, which makes it more straightforward overall. However, his interest is higher than that of the housing loan, which is why it is hardly worthwhile for property owners to finance the kitchen.

    Finance the kitchen through building loans

    Finance the kitchen through building loans

    Real estate buyers who want to finance their kitchens often want to do this through home finance. For good reason: there is much lower interest on a mortgage than on an installment loan. The hurdles are higher. Most banks do not co-finance furniture because they do not add value to the property.

    In addition, the loan amount of the property may not be exceeded by the additional amount required. In addition, the total of the building finance increases by the amount needed for the kitchen, which is noticeable when entering the land register: the land register and notary fees are based on this. If the kitchen only costs 10,000 dollars, for example, the project would be much less attractive due to the increased land registry fees.