Renovation loan

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.

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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.

Opens in a new tab. The comparison calculator is operated by our cooperation partner PROCHECK24; your entries go directly to PROCHECK24, not to Perini Finance & Property. If a placement succeeds, we receive a commission — this does not change the terms offered to you. Details on data protection at PROCHECK24 are available on their website.

Renovation, repair or modernisation?

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 or mortgage with a land charge — which fits?
Renovation loan (this page)Mortgage with land charge
Land registry entryNot requiredYes, a land charge is registered
Typical amountUp to roughly €50,000Larger amounts too
Interest rateSomewhat higherUsually lower
PayoutUsually fasterSlower, due to the land registry
KfW subsidyNot applicableIndividual-measures check available

Roughly what modernisation work costs

Rough cost ranges — depend on the building's condition, size and region
MeasureCost range
New windowsfrom roughly €500 per window
Façade insulationroughly €160–350 per m²
Heating replacement (heat pump)roughly €15,000–30,000
Bathroom refurbishmentroughly €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.

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Larger projects

KfW subsidy check

For bigger modernisation projects with a land charge and KfW support.

KfW subsidy check →
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FAQ

Common questions about renovation loans

What is a renovation loan?
A renovation loan (also called a modernisation loan) is an unsecured instalment loan for conversion, repair or renovation work on a property. Unlike a mortgage, it needs no land registry entry, but the interest rate usually sits a little above a mortgage secured by a land charge.
How is the monthly payment calculated?
A renovation loan usually runs as an annuity: the payment stays constant for the whole term, while the split between interest and repayment shifts toward repayment with every instalment. By the end of the term the loan is fully repaid — unlike a fixed-rate mortgage period, which can end with remaining debt.
How long can the term be?
Terms of 12 to 120 months are common. A shorter term lowers the total interest cost but raises the monthly payment. A longer term lowers the payment but raises the total interest cost over time.
What documents does the bank need?
Typically proof of income for the last few months, a valid ID, and details of any existing liabilities. The exact requirements depend on the provider and the loan amount.
Can I repay a renovation loan early?
Most renovation loans allow early repayment with no or only a small early-repayment penalty. This is set out in the individual loan agreement and should be checked before signing.
What determines the interest rate?
Mainly your creditworthiness (Schufa score, income, existing liabilities), the loan amount and the term. Comparing several providers shows the real range — offers can differ substantially.