If you have your own living space, you must from time to time take care of maintenance. The modernization loan is usually only small sums. As a rule, the loan amount is between 5,000 and 50,000 USD. The term is usually 10 years. As a rule, no collateral is needed to raise a modernization loan.
The modernization loan is not recorded in the land register and thus does not affect the resilience of the property. By this point one saves oneself the course to the notary and the costs connected with a notary and there is no additional rank which is noted in the land register.
The modernization loan is similar to a normal installment loan, only with a fixed earmarking. Modernization loans are offered by branch banks and also all direct banks.
Which structural measures can be covered by the installment loan:
- New heating system
- New windows
- New front door
- Energetic renovation
Modernization requires a structural change that increases the value of the property and reduces energy consumption. In order to stimulate incentives for environmentally friendly conversions. Rebuilding for modernization is usually associated with high costs, but it also reduces the additional costs and improves the value of your own property. A modernization loan offers better interest rates than a normal installment loan and therefore does not noticeably burden your wallet.
Features modernization loan:
- Installment loan that is set to a specific purpose
- Often also found under the term residential loan
- Nothing is entered in the land register
- The sum is between 5,000 and 50,000 USD
- Only owners can apply for the modernization loan
- Offered by private banks and state banks
The modernization of the property is to be made possible by the modernization loan for owners without appreciable equity. Repayment can be arranged very flexibly with most banks. A special repayment is easily possible with the modernization loan. Anyone who insists on a fixed interest rate of 10 years, especially in the current low-interest phase, can generate significant added value that has lasted for years.
Compare loans and save money
Also in the modernization there are different lenders, which offer different conditions. As a rule, the offers of HeW are particularly favorable. Modernization loans provided by the state have become very popular in recent years. HeW has the opportunity to obtain fresh loans even more cheaply than private banks can.
Before any loan is taken, it is important to make a credit comparison. Because it is always possible to get a cheaper loan. Not only interest rates are crucial, but also special repayments, installment breaks and other criteria that apply to loans.
Framework for stable financing with a modernization loan
|20 – 30 percent||equity|
|20 – 30 percent||pre-financing|
|40 – 60 percent||mortgage loan|