Compare renovation loans
Real offers from several German banks for renovation or modernisation work — no land registry entry required, usually faster than a mortgage.
What is a modernisation loan and how does it differ from a mortgage?
A modernisation loan provides real offers from several German banks for renovation or modernisation work — without a land registry entry, and usually approved faster than a mortgage. Because no charge has to be registered against the property, the cost and delay of involving a notary and the land registry office is avoided entirely, which makes this route attractive for smaller and mid-sized renovation budgets. It suits projects that need to move quickly and do not require security registered against the property itself — from a new heating system to an energy-efficiency refurbishment. For larger sums, or where the property already carries a mortgage, comparing against refinancing or extending the existing mortgage is usually worthwhile instead, since the interest rate there tends to be noticeably lower than on an unsecured instalment loan.
Comparison calculator with real terms
For a real, comparable offer from several providers, use the comparison calculator run by our partner PROCHECK24 — you enter your details there directly and get the result immediately.
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What a renovation loan actually covers
The terms get used loosely, but they mean different things: a straightforward renovation is cosmetic work (new flooring, a fresh coat of paint). A repair fixes a defect or damage (damp, faulty pipework). A modernisation raises the value or comfort of the property beyond its original condition (new heating, insulation, a step-free bathroom). In practice a renovation loan covers all three — common uses are new windows or heating, façade insulation, bathroom refurbishment or installing solar panels.
The difference from a mortgage: a renovation loan needs no land registry entry, payout is usually faster, but the interest rate tends to sit a little above a mortgage secured by a land charge. For larger modernisation projects with a land charge and KfW subsidy, our German-language modernisation financing page covers that route — including the individual-measures check for KfW 261/308 subsidies, also available in English.
| Renovation loan (this page) | Mortgage with land charge | |
|---|---|---|
| Land registry entry | Not required | Yes, a land charge is registered |
| Typical amount | Up to roughly €50,000 | Larger amounts too |
| Interest rate | Somewhat higher | Usually lower |
| Payout | Usually faster | Slower, due to the land registry |
| KfW subsidy | Not applicable | Individual-measures check available |
Roughly what modernisation work costs
| Measure | Cost range |
|---|---|
| New windows | from roughly €500 per window |
| Façade insulation | roughly €160–350 per m² |
| Heating replacement (heat pump) | roughly €15,000–30,000 |
| Bathroom refurbishment | roughly €8,000–25,000 |
Source: ADAC guide on energy-efficient renovation (windows, façade, heating); typical tradesperson pricing (bathroom refurbishment), as of 08/2026. Rough guidance only, not a binding quote — depends on the building's condition, execution and region.
Keep calculating
KfW subsidy check
For bigger modernisation projects with a land charge and KfW support.
KfW subsidy check →