Modernization Loan 2019 »Home Loan or Installment Loan Test!

 

The toilet smells a bit, the wallpaper is stained and the carpet full of house mites: Time for a modernization. An obligation is a new facility when mold threatens the health or residents are allergic to house dust or built-in materials. Fortunately, several banks offer a low-interest modernization loan for homeowners.

Installment loan or another offer from the comparison calculator. 

Installment loan or another offer from the comparison calculator. 

For modernization, many banks but make a special offer. In the test, we compared Camibanks residential credit with its preferential credit. The result: the modernization loan is almost half a percentage point cheaper.

However, the credit is also linked to two conditions:

  1. It has to be used for modernization.
  2. It is only given to homeowners, not to tenants.

Registered a mortgage.

Registered a mortgage.

This initially saves fees, but the interest rates are higher. The Metabank offers their housing loan therefore only for amounts up to 50,000, – $, at the same time this is the minimum amount for a real estate loan. If you need less than $ 50,000, you will be directed to the modernization loan, with higher mortgage loans.

For other banks, the limit may be different, but also here is usually that the housing loan is cheaper if the need for money in the below five-digit range or lower, because the higher interest then cost less than the entry of a mortgage. 

Mortgage rates are historically low, but the cost of a land registry may be higher than interest savings. Especially since modernization loans are currently cheap. 

The fact that the property is not burdened with a mortgage does not mean, however, that it could not be forcibly auctioned in the event of insolvency. This is one of the reasons for the interest rebate on residential loans, another is the fact that homeowners do not have to raise money for the rent.

Anyone entering in the installment credit calculator for the purpose of “modernization / renovation” automatically receives special housing loans as well.

Net loan amount 5.000,00 $ to 100.000,00 $, annual interest: 2.42% to 8.56% (as of October 2015).

A special feature is the solar credit of KEA Bank. Although this is also the modernization of the house, but is not considered a residential loan, as it is tailored specifically to the purchase and installation of a solar system, a new coat of paint can not be financed.

That’s why he does not appear in comparison. If you want to use the modernization loan specifically for a solar system, you should compare the conditions of KEA Bank with the results from the loan calculator.

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