Modernizations are scheduled for the home at regular intervals. These measures are usually very expensive and therefore often have to be financed through the modernization loan. In order to be able to determine the exact financial scope, one should draw up a list on which all necessary work is listed. In this way you get an overview and can check which measures may be funded.
If, for example, the house is to be newly insulated and equipped with a heater that can be operated with alternative energy, it is worthwhile to look for funding programs. In many cases, the state, the federal states and municipalities provide modernization with a low-interest loan or provide grants, some of which do not have to be repaid. However, these programs differ from region to region, so local demand is recommended.
Loan for modernization
Another option is to take advantage of cheap promotional loans from bank. For the purpose of modernization, the owners are offered long-term low interest rates. However, these loans are earmarked and a precise description and documentation of the measures taken must be presented. To do this, it is also necessary to describe the property in question in detail, including the year of construction, condition and value. The loan for the modernization can then be made at bank via a commercial bank of your choice. However, the full scope of the modernization is usually not funded, so that a combination with a “normal” loan is necessary.
Credit for the modernization – combinations and conclusion
If there is equity capital, this should be included in the calculation if possible, because this reduces the proportion of debt capital and thus the costs. The combination of subsidized funds and the loan from the house bank is a very popular variant. Nevertheless, the conditions should be checked carefully. The comparison between a loan for modernization and a combination of funds with the loan from the house bank can bring surprising savings. Thanks to the modernization loan programs that emerged when the home allowance was canceled, credit institutions can offer favorable terms for homeowners.
This special product is presented to the applicant with and without a land register entry, although the interest without a land register entry can be higher in order to keep the risk lower. These loans are particularly useful when there are modernizations in the house (eg a new bathroom, new ceilings and floors, a new roof or the long overdue facade painting) that do not affect the energy systems. The loan for the modernization can be used freely and need documentation of the work is not necessary.
As with all loans, however, the following also applies here: one should know the personal situation exactly in order to be able to pay the installments regularly. For this reason, an exact calculation with corresponding offers from the craftsmen is imperative, because this is the only way to avoid unpleasant surprises.