Renovation loan: what does the renovation cost per month, and when is a loan worth it?
For a bathroom, floors, kitchen or paint a renovation loan is the quick route: no land registry entry, often fast payout. Work out your rate and then request real offers.
What is a renovation loan?
A renovation loan is an unsecured instalment loan for renovation work on your own property or flat. It needs no land registry entry and is usually paid out faster than a mortgage. The rate is typically somewhat above that of a mortgage-backed loan.
Non-binding guide using an annuity rate and a fixed interest rate. The actual offer depends on creditworthiness, amount and term; the effective rate in the offer is what counts.
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Renovation loan or modernisation loan: is there a difference?
In everyday use the terms are interchangeable: both are instalment loans for work on a house or flat.
A renovation covers smaller work such as floors, paint or a kitchen; a modernisation lifts the standard above its original state. For the loan this normally makes no difference. See renovation loan.
How much rate does your budget carry?
Work out the monthly rate first, then decide on term and amount.
Allow a buffer for unplanned extra costs. Typical cost ranges are in the renovation costs calculator.
When is a mortgage-backed loan better?
From about €50,000, or if the property is financed anyway, compare with a top-up.
The rate is usually lower there, but notary and land registry costs apply. We calculate both routes for you.
Frequently asked questions
How much can I borrow for a renovation?
Instalment loans up to around €50,000 are usual, more depending on creditworthiness.
How long can the term be?
Usually 12 to 120 months, depending on the lender.
Do I need cost estimates?
Normally not for a free-use instalment loan. Subsidised loans or mortgage-backed financing may require proof.
Is there funding?
Generally not for purely cosmetic work. For energy-efficiency measures there is, see KfW funding.
Any questions on this topic?
A first consultation is free and without obligation — the commission is, as a rule, paid by the bank. We tell you what this means for your own financing.
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Editorially responsible: Olga Nikushkina — owner, §34i GewO (German mortgage brokerage), adviser register D-W-132-ZUCB-95. Specialised in German property financing with an international dimension: non-residents, foreign-currency income, cross-border workers, expats. Siegfried Perini is entered in the German intermediary register under this licence as a person directly involved in brokerage and advice (§ 11a GewO), active in real estate since 1992. Not legal or tax advice.