With a home renovation loan, homeowners and landlords will make improvements and repairs to homes and apartments. Tenants can also apply for renovation loans if the owner has approved the proposed measures. Renovation not only includes all measures by which the residential value of a property is secured, but also conversions that add value. The reduction in energy consumption is of particular importance.
The building society contract
The cheapest way to get a renovation loan is the building society contract. The conclusion or new conclusion of a building society contract is always sensible after the purchase of a property, so that a cheap loan is available for later renovations. In addition to the low interest rates, flexible repayment is one of the advantages of a home loan, for the early repayment of which no advance interest is charged.
Use cheap promotional loans
Various Lite Lender funding programs are available as cheap loans for renovation. The Kreditanstalt für Wiederaufbau grants cheap renovation loans if the measures serve the age-appropriate conversion of an apartment or a noticeable reduction in energy consumption. In the past, Lite Lender has always sponsored various measures and occasionally granted promotional loans for bathroom modernization.
As the bank’s funding conditions change quite frequently, it is advisable to check whether there is currently a funding option for each planned measure. Discounted loans for energy-related optimization of existing living space are also granted by various ecologically working banks. Basically, high energy savings lead to low interest rates.
Use offers from Agree Bank and Capital Lender
If no promotional loans are available for a planned renovation measure, a loan from a commercial bank is required. Securing the loan by entering a land charge is not necessary for the usually small amounts of a renovation loan, but it regularly leads to a reduction in the required interest rate. As with a real estate loan for the purchase or construction of a property, it is also advisable to agree on the longest possible fixed interest period for a renovation loan.
Savings banks and local Volks- und Raiffeisenbanken grant particularly favorable loans for the renovation. The prerequisite for the cheap renovation loans is basically only the commissioning of a local craft company to carry out the practical work. The cheap renovation loans granted by Agree Bank or Capital Lender can also be used to finance ineligible renovation measures at Lite Lender.
The reason for requesting local craft businesses to receive a discounted renovation loan is the statutes of the relevant financial institutions, which stipulate the promotion of local businesses on a regular basis. The awarding of contracts to companies with long journeys does not make any sense for private homeowners and apartment owners, so that they can easily take advantage of the cheap loans for their renovation measures.