Take out a modernization loan in your ideal home.
The modernization loan is a loan that is usually taken out by property owners when it comes to modernizing their own four walls.
Buying a property is usually not enough if you want to maintain or increase the value. Modernization measures are usually measures that are associated with not exactly small investments, so that a modernization loan is the absolutely suitable funding and is offered directly by many banks.
As a rule, such modernizations are part of modernization loans with a volume of up to 50,000. The banks do not make an entry in the land register if they grant a modernization loan. Modernization loans are generally approved without the provision of additional collateral, simply with a clean Schufa information and a pay slip.
Compare modernization loans
Some banks offer them directly as modernization loans, but they can only be used for very specific purposes. If you want to use the loan a little more freely, you should try to apply for a normal installment loan for free use on favorable terms. In any case, a condition comparison should always be carried out in advance so that the cheapest loan on the market can be taken out.
Since there is no entry in the land register for modernization loans, the borrower has no further costs and the loans are paid out faster than is the case with a mortgage loan. The only downside in modernization loans is the slightly higher interest rate compared to mortgage loans. Therefore, it can also make sense to negotiate with the bank to increase the current mortgage loan.
For which concrete measures a modernization loan is intended
Banks that offer special modernization loans usually impose certain conditions on the granting of these loans. Homeowners are usually interested in preserving the value of their property. Modernization measures can also make a significant contribution to significantly increasing the value of the existing property, which is also significant if the property itself is not currently for sale.
A modernization loan can finance measures such as improving living comfort by modernizing the bathroom, renewing the roof, insulating the facade, installing modern heating or renewing old windows. Even when it comes to the use of renewable energies, homeowners are offered a number of particularly attractive financing options.
Interested consumers should pay special attention to Cream Bank’s offers and also inquire about modernization loans that are subsidized by the state, because certain modernization projects that serve climate and environmental protection are particularly supported by the state. These modernization loans are granted by Cream Bank, but must always be applied for through the house bank.
When are modernization loans the right funding?
A modernization loan is suitable if the required credit is not greater than USD 50,000. Real estate owners who still have to repay a mortgage at the same time should always check in advance whether it might make more sense to top up the existing mortgage loan. Modernization loans are not granted as such if they are just a normal repair. The structural measures planned as part of the modernization must at least serve to improve living comfort and, if possible, also to save energy, as is the case, for example, when installing new windows or thermal insulation of the facade.
The main advantage of modernization loans is that the processing and also the provision of the money take place relatively quickly, so that the planned modernization can be commissioned immediately. In the case of government-funded projects, it should be noted that the project should not have started before the application was submitted.