Borrow money for renovation workOn May 16, 2019 by Linsey Metivier
Is your house ready for a refurbishment? Or do you want to take energy-saving measures? Renovation work is expensive and not everyone has money ready to invest in it. With a renovation loan you can pay for all these things. All renovation work is permitted.
A new kitchen can easily cost thousands to more than ten thousand euros. Painting works can still be paid for yourself if you do the works yourself, but soon as you hire someone, the bill becomes much more expensive. Then the search for suitable financing is not even such a bad idea.
Borrow money for renovation work
A renovation loan is also usually cheaper than, for example, a personal loan. Since the purpose of the loan with a personal loan is not always clear, the interest rate will be much higher.
With a renovation loan people know what you will use the money for and that you also have your own house but the risk of borrowing money is somewhat lower which means that the interest rate is also lower.
The loan conditions differ between the lender. Usually a renovation loan can be taken out from 2500 euros to 50,000 euros. The interest rates range from 3.30% to 9.80% with an average interest rate of 4.5%. The interest depends on the term and the amount borrowed.
As an example we give a quote for a renovation loan at BNB Port Sariba. For example, if you want to borrow 7500 euros in 30 months, you get an interest rate of 4.20%. This interest rate is still far below the average for all other lenders. This means that you pay off about € 260 per month on the renovation loan.
If you want to invest in energy saving measures
A green loan is much cheaper. Because a green loan is usually subsidized, it is possible to borrow at a low interest rate. A green loan can be used for the purchase of, for example, solar panels, solar boiler system, solar PV system, floor insulation, roof insulation, heat pumps, cavity wall insulation, facade insulation, windows, doors, high-efficiency boiler, direct-current pumps and pressure-controlled ventilation.
A green loan is almost always a good investment because you always win the money back over time. You first have to pay a large amount, but you save that on your energy bill month after month.
The interest rates for a green loan are considerably lower and vary between 1.8% and 4.8%, for example, you can take out a green loan with an interest rate of 3.75%.
Are you looking for a way to finance your renovation work? Compare renovation loans and find a loan at an attractive interest rate. Do you want to save on your energy bill but cannot finance environmentally-friendly measures yourself? Then a green loan might be a good solution.