Apartment renovation may be necessary for various reasons. According to the tenancy agreement, tenants are often obliged to renovate after moving out or before moving in. Landlords and homeowners are renovating apartments to preserve the value of a house. In some cases, renovation requires little work, the cost of which can be met from current income. For a comprehensive renovation of an apartment, however, it is regularly necessary to take out a loan in view of the high costs.
Promotional loans from Intrasavings bank
If owners associate an energy-related renovation with the apartment renovation and achieve significant energy savings, they are entitled to cheap promotional loans from the Intrasavings bank. The corresponding applications are made via a commercial bank to be selected by the owner. In addition to the long-term offer of energy technology renovation, Intrasavings bank regularly offers other programs, so that it is sensible to visit the development bank’s website before starting to renovate an apartment.
Home loan and regional bank loans
A home loan can also be used for renovation, in addition to buying or building buildings. It therefore makes sense to conclude a new home savings contract after purchasing the property and to use its home savings sum for later renovation measures. In addition, local Agree banken or Cream banken and savings banks offer cheap loans for construction measures. The only prerequisite for obtaining a discounted loan for an apartment renovation from the local Agree bank or Cream bank is that local craftsmen be commissioned to carry out the renovation in practice.
This makes sense anyway, since companies who travel from far away charge high travel costs. A savings bank or Agree bank or Cream bank grants the discounted renovation loans both to owners and to tenants obliged to renovate their old or new apartment. However, anyone who buys the materials in the hardware store and works as a handyman will not receive a discounted loan for home renovation. In this case, tenants need to take out a normal consumer loan, while property owners can take out a cheap home loan for home renovation.
The corresponding real estate loans are paid out by most banks for small loan amounts without an entry in the land register. Most renovation measures cost significantly less than ten thousand USD, the limit for insignificance is 30,000 or 50,000 USD depending on the bank. Before owners or tenants take out a home renovation loan, they compare offers from several banks. In addition to the effective annual interest rate, the ability to make special repayments without prepayment penalty is a criterion for choosing a lender. If tenants take out a loan for a home renovation, they ideally combine it with a moving loan, so that only one borrowing is required for the renovation, the actual move and the furnishing of the new apartment.