The renovation of an apartment or house is in most cases a large undertaking that requires proper planning, time and money. Very often these amounts oscillate around tens of thousands of USD for a comprehensive service. Few people can afford such an investment for cash, which is why they reach for external forms of financing, such as a loan for renovation.
Before applying for a loan, it is necessary to make a schedule of renovation works and a list of potential expenses that you will have to consider.
Thanks to this, it is possible to determine which expenses will cost the most and at which stage of renovation it will be necessary to involve the largest funds. Meticulous calculations will allow you to plan the budget of the entire investment and estimate whether the accumulated capital is sufficient to cover all the anticipated costs.
Where to look for a renovation loan?
The renovation loan is available both at stationary points and on lenders’ websites. We encourage you to review all offers to be able to compare and make the best decision. For this purpose, you can use the payday loan comparison tool, which combines all offers in one combination, according to pre-defined parameters.
At the same time, you can use the offer of advisors and brokers who also have offers from various financial institutions and are able to advise you on the selection of the right solution. Advisors at the stage of finalizing the transaction can also offer an additional discount, which they are entitled to thanks to many years of activity. It is therefore worth considering this option.
How to get a loan to refurbish an apartment?
In the case of a renovation loan, things look a bit simpler than in the case of a mortgage. Despite the smaller amount, the bank will still require a credit history and a stable financial position. Therefore, it can be assumed that the loan for housing renovation is only available to people with a regular source of income.
Even minor delays in repayment of earlier obligations or employment under a civil law contract may hinder the granting of a renovation loan.
The situation is slightly different in the case of non-bank institutions. In their case, the restrictions are much smaller – they require less formalities and do not check such scrupulous influence. However, they are required to read the information from the Credit Information Bureau and the debtors register.
That is why today, unreliable debtors who are struggling with financial problems have little chance of getting a loan or a loan. In some loan companies, people with individual negative entries in the Credit Information Bureau and those who are not employed under an employment contract can count on financing.
Some employees may also benefit from a renovation loan from a social fund. This is a fund created by the employer from the company’s social benefits fund for loans related to meeting the housing needs of employees. Repayable assistance from the fund may only be used for housing purposes.
Loan for apartment renovation – calculator
Before submitting the application for financing, it is worth using the investment calculator, which will allow us to determine the most important investment assumptions, i.e. the total cost of the loan, interest rate, commissions, interest, the value of the monthly installment, the total sum to be repaid and the repayment date.
After calculating and analyzing all the numbers related to the investment, we can apply for a loan to renovate the apartment.
A loan for a home renovation in a non-bank company – is it worth it?
A loan for a home renovation obtained in a non-bank company is above all an opportunity to quickly meet the needs. Renovation in many cases turns out to be necessary to carry out. Then there is a need for sudden action, which, unfortunately, is associated with high costs.
That is why more and more people decide to take out a loan for home renovation and subsequent repayment of installments. Thanks to this, they can carry out the entire investment without fear of running out of funds to complete individual elements.
Amount of loan for renovation – what could it be?
Basically, the loan amounts for renovation oscillate around tens of thousands of USD. Of course, you can use financing in the amount of several thousand. It depends on the needs and scale of activities at the moment.
How is the renovation loan the most advantageous?
Here, the most important are price aspects. The most favorable repair loan is the one with the lowest APRC (Annual Real Interest Rate) and the most favorable repayment terms. It is about the length of the repayment period or the possibility of overpaying several installments in advance.
In what situations is it worth reaching for a renovation loan?
First of all, if you do not have cash, and at the moment you have a strong need to renovate an apartment or house, a repair loan is for you.
At the same time, if you want to efficiently carry out the entire investment, without worrying that at some stage you will run out of funds, a repair loan is also for you.
Is it worth taking a loan for renovation? Advantages and disadvantages
As in many cases, the same can be said in this case that it depends on many factors, which are often individual. It is primarily about the current financial situation, history in BIK, the need to carry out renovation at a given moment, the possibility of postponing the renovation, or other urgent financial needs that may occur in the near future.
If there are no clear contraindications then it can be assumed that a renovation loan is a reasonable solution. The undoubted advantages of using a renovation loan include the quick implementation time of both the loan application and subsequent renovation, thanks to having all the cash needed to achieve the goal, and in most cases the possibility of extending the repayment period.
In turn, as a disadvantage we can include a relatively high interest rate on loans for most loans for renovation. Considering these factors, we should think carefully about making a renovation loan. At the same time, it is worth remembering that it is reasonable to use calculators and comparison tools at the selection stage.