Loan for home or flat renovation. What loan for the apartment renovation will be the best? A cash loan, a mortgage or a non-bank loan?
The cost of renovation, independent whether it is only painting and wallpapering, or a general renovation of the apartment and house, it still requires adequate financial outlay. Such an expense may amount to several hundred zlotys, as well as several thousand. If we do not have sufficient funds to finance the renovation, a loan or a bank loan often remains.
Each loan must be tailored to the needs and possibilities. Before we make a decision to carry out a renovation, it is necessary to estimate the cost of such renovation. Only then can we decide on the amount of the loan, the loan period and the type of financing: a loan or a mortgage loan.
In the bank, we will not find a product such as a home loan or a loan for a house renovation. A popular loan or a repair loan is nothing else but a loan or a cash loan.
If we want to renovate a non-bank loan, it is better to refrain from the renovation, due to the fact that non-bank loans (especially installments) are much more expensive than similar bank loans.
A cash loan for renovation
A cash loan or a cash loan is a good solution when you need a relatively small amount of loan for renovation. Its amount depends not only on the investment itself, but also on our creditworthiness. Therefore, before we decide on the scope of renovation work, it is worth contacting the bank for such analysis.
Why is cash loan a good solution in case of renovation? Because it is a quick loan, and we can get a decision to obtain it even within a few hours of submitting the loan application. It is certainly not the cheapest, because they are expensive loans. The interest rate on a cash loan amounts to a maximum of 10%, and the commission for its granting may reach as much as 10-15%. The maximum loan amount is PLN 200,000, and the maximum loan period is 10 years.
In order to choose a favorable loan for the renovation of an apartment or house, it is necessary to make comparisons of loan offers at banks.
In the case of cash loans, banks usually require a minimum of formalities. Depending on the amount of the loan or loan, sometimes only an ID card and proof of income amount are enough.
A mortgage loan for renovation
What if it is a general renovation of the house or flat we own? In the case of a major renovation, which requires the involvement of a lot more money, you should consider a mortgage loan.
In addition to having to own a property, it also can not be mortgaged.
With high funding amounts, amounting to over 40,000 PLN, a mortgage loan will be cheaper than a cash loan. It is lower interest bearing and the period for which we can borrow money exceeds 10 years. As a rule, it is a maximum of 30 years, and the loan limit is about 70-80% of the value of the property.
The procedure for obtaining such a loan is much longer than in the case of cash loans and loans.
Loan for apartment renovation calculator
It should only be noted that there is no such thing as a ” loan for housing renovation calculator “. This has been explained above. Let’s remind that every so-called repair credit is a cash loan or a mortgage loan.
In the case of loans and cash loans for the renovation of an apartment, you can use the cash loan calculator, which allows you to estimate loan installments.