Modernization credit – Apply Now!

Every homeowner knows it well, something breaks in the house over the years. A new roof, the renewal of the windows or a new heating system are expensive and cost a lot. Not all of us have enough reserves in our account for this case. The modernization work cannot be postponed forever, a loan is required. The advantage over a conventional loan is that the low interest rates that banks offer on a modernization loan are extremely advantageous. However, the money is tied to the modernization measure and cannot be used for anything else.

Take out a modernization loan

Take out a modernization loan

A modernization loan can be financed particularly cheaply for larger sums and can possibly also be combined with other loans. But not only large amounts can be financed, smaller loan amounts can also be included without an interest premium and without the entry in the land register. The terms of the modernization loan can be selected individually and extremely flexibly, from long to short-term. Fixed rates as well as fixed interest rates give the borrower the security he needs. With most modernization loans, a special repayment can be made at any time free of charge.

Depending on the modernization, the state offers extensive support programs that can be used by the borrower. A comprehensive financing plan is not necessary for the modernization, depending on the bank, up to $ 30,000 can be raised without a land charge being entered in the land register.

Which measures are supported by the modernization loan?

Which measures are supported by the modernization loan?

A modernization loan is intended to support the owner and be available for larger expenses. With a modernization loan, the heating system can be modernized or even completely renewed. The roof or roof truss can be renewed, expanded or re-covered. The facade or the roof can also be insulated with a modernization loan.

Many homeowners use the modernization loan for the construction of solar panels or photovoltaic systems or for the construction of a balcony, conservatory or terrace. The services also include the renovation of the bathroom and the creation of an energy pass. The funded measures are therefore extremely extensive.

Compare offers is worthwhile

Compare offers is worthwhile

Countless banks such as Sparkasse, Commerzbank, Best Bank-Bank and many more offer modernization loans. Basically, the providers do not differ significantly from each other, but it is worth comparing the offers. Interest rates may vary slightly depending on the bank and the range of services may also vary. So if you compare the different offers of the individual banks with each other, you can save money. The bank comparison is child’s play with the comparison portals on the Internet and carried out extremely quickly.

In addition to the comparison portals, interested homeowners can use the loan calculator on the bank’s website, which gives the customer a detailed overview. The conditions, as well as the amount of interest, can be viewed immediately.

The extensive support programs that the state offers for individual measures are also interesting. The support programs are worthwhile because they can save a lot of money for the borrower.

Advantages of the modernization loan

  • Numerous funding programs
  • Good conditions
  • For smaller and larger loan amounts
  • Many measures that are supported
  • Depending on the bank and loan amount, no entry in the land register
  • Fixed interest rate fixation
  • Free special repayment possible


  • The loan is linked to the modernization measure


A modernization loan offers the homeowner financial scope to carry out the measures, especially for large modernization measures. Interest rates are usually low on such a loan, and some banks also offer free special repayments. The state funding programs also offer potential savings, depending on the renovation measure, the owner will be rewarded by the state.

A bank comparison is highly recommended, because depending on the bank, different conditions are offered on the subject of modernization loans. The comparison of offers is worthwhile, because with the right offer the customer can save a little more.

There is always something to do in the house and apartment. However, the required capital is often not available and a loan is required. There are different financing options here.

Personal loans

Personal loans

Installment loan banks issue modernization loans quickly and without collateral. The credit application is checked directly with the advisor in the bank or online if the loan is requested online. The loan terms here are usually between 12 and 84 months. The loan was repaid in constant installments during this term.

The interest rate is mostly dependent on creditworthiness, which is why it is only finally determined with a specific application. Depending on the agreement, early repayment of the loan is possible, some of which is subject to a charge.

Loan secured by mortgage

A mortgage-backed loan is a cheaper option than the classic installment loan. In addition to home finance, this loan includes a second modernization loan. Ideally, there are still free land charges at the bank. Then there is the possibility to simply revalue it.

If this is not the case, however, a land charge entry and the associated notary visit will be due. This again causes costs which have to be taken into account in the total cost calculation.

Modernization loan without mortgage

In order to save the hassle of securing the land register, some banks offer a modernization loan without securing land charges. As a rule, this loan is granted blank and issued to the owner of the property. The loan amounts are between 10,000 and 40,000 USD. These loans are also often offered by building societies in terms of suspension of repayment.

These loans differ from the classic annuity loans, but secure the interest for the entire term of the loan through the building society account. The term of the building societies, in contrast to the banks, is usually 15 to 20 years. The building societies therefore also offer a very long interest rate guarantee for these models.

Best Bank loan

For the loans from the state development bank Best Bank, there is an energy-efficient modernization program for modernization and the age-appropriate conversion program. Both have entry requirements for the promotional loan commitment. Both programs are applied for through Best Bank’s house bank and generally have lower interest rates than the house bank alternative. The energy-efficient modernization loan is suitable for all energy-related measures. For example, this can be the replacement of windows or a new roof. But also insulation of the walls and ceilings.

Almost every energetically sensible measure is then financed by the loan. The maximum limit is 50,000 USD per residential unit. The loan from the program to remodel age-appropriate serves to make living space age-appropriate or handicapped-friendly. Here too there are many different measures to take advantage of the funding.

The renovation loan is an installment loan that is earmarked for the renovation of a property. It primarily serves to maintain value. In contrast to the modernization loan, the renovation loan does not change the property.

In contrast to real estate loans or modernization loans, this loan can be taken out by owners and tenants. A land register entry is not absolutely necessary for renovation loans. In the case of major renovations, the bank will, if it concerns the owner of the property, press for entry in the land register. As it is not absolutely necessary and also involves additional costs, the applicant should negotiate at this point. Ev. the bank pays the costs of registering the land register, or the interest is cheap.

The earmarked loan may only be used for the requested renovation. This is checked by the financial institutions step by step or after completion of the construction for large measures.

What can the loan be applied for?

What can the loan be applied for?

The most common renovation loans are used for renovation, such as renewing ceilings, floors, or painting.

Such loans are also increasingly being applied for measures to save energy or to generate energy. Here everyone should note that there are various funding programs, so that the entire investment does not always have to be financed by energy-efficient renovation alone. This should always be taken into account before borrowing.

It makes sense if credible documents or corresponding cost offers are submitted with the application for the loan, so that the bank can see that the construction project is also to be financed with the amount requested.

Maturities and repayment of renovation loans

The payment is agreed in one sum or, in the case of larger measures, staggered according to construction phases.

The loan amount is based on the planned renovation, the existing own funds and any government funding that may have been given. It can be between 1000 and 250,000 USD.

The term of the loan is agreed in advance, just like with the normal installment loan. Many banks offer a maximum term of 84 months.

It also makes sense here if special payments have been agreed in the loan agreement (especially with large loan amounts and long terms).

The repayment will be made in predetermined installments together with the interest and other fees after the construction and payment phase.

In the case of large renovations in particular, for which a high loan amount is requested, the bank can, if there are no other collateral, insist on taking out default insurance. These are often very expensive. In such cases, it may make sense to look for a cheap other lender who does not require this insurance.

Interest on the renovation loan

Interest is often lower on this dedicated loan than on a normal installment loan for free use. They can still be of different heights between the banks, so that a comparison is always worthwhile. This can be done easily and conveniently on the Internet using the corresponding comparison calculator. It makes sense to use comparison computers that have also been checked (e.g. by the Stiftung Warentest). After a preselection of banks, binding written offers should always be requested. The bank asks for credit bureau information. There must be no negative entries here. Regular income should also be proven.

As usual, there are the most favorable terms for every loan, only if the applicant has a very good credit rating, although each bank can have different valuation standards. A renovation loan is available today from 2.5% to 3% APR.

A Best Bank loan can also be applied for through the house bank for certain measures (especially energy saving or recovery). Here there are the lowest interest and costs and government subsidies are possible. Own shares are usually not required.

The downside is that these loans are hard to come by. This only supports precisely defined measures. There is often only a certain amount per year. If this is used up, it must be applied for again in the new year

There are also a large number of providers of credit without a credit check and without credit bureau on the Internet, which are not loans for renovation, but installment loans.

These also have higher interest rates than installment loans with a credit check. The annual percentage rate is often 8 to 11%. As protection, the borrower must take out default insurance. in most cases this is very expensive and the costs for this are not included in the annual percentage rate.

On the Internet, there is also the possibility to borrow money from private individuals via a corresponding portal. Since the money is given by private individuals, social aspects can play a role in the award. No credit bureau information is required, which can be particularly advantageous for people with poor credit ratings. The disadvantage is that donors have to register via the portal before the loan is concluded. in most cases the sums are low and the interest rates are comparatively high.

Banks may no longer charge loan processing fees for processing the loan. Every applicant should also pay attention to this.

The labor costs of the craftsmen can be claimed in the tax return.

In order to save on the loan amount, it can make sense if the building material or parts of it are procured by yourself. Many hardware stores offer zero percent financing for installment payments. This can save a lot of money.

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