Owners of own real estate
Are well aware that from time to time some renovation or repair should be carried out at home. Sometimes it’s about cosmetic treatments like painting, but sometimes we have to do a total “demolition”. Every renovation, regardless of the scope, requires some expenses from us. If we are prepared for such an expense – no problem, we can use the collected financial resources and carry out the renovation. But what if the bank account is empty and the renovation needs to be done? Of course, the easiest way is to go to the bank and borrow money for renovation.
In banks, we do not see a loan that is offered only for the renovation of real estate. We must therefore take advantage of the offer that will allow us to borrow money, which we will later use for our purpose. And here we have several options. Their choice should depend on the amount we need, as well as on the “speed” with which we need cash.
If our renovation comes down only to refreshing walls or other minor repairs, we can use eg the limit on the invoice. It is a loan for which you do not need many formalities, and the money we will have at our disposal often after one visit to the bank (or even without leaving home using online banking). Usually banks will not require us to get income certificates, because they can check everything by browsing our account. It is not a road loan, so it may be perfect for us.
In the case of a slightly larger renovation,
We should apply for a cash loan. Its biggest advantage will be that the bank will not interfere with what we spend money, the process associated with obtaining it is not too complicated, and the repayment can be spread even for several years. Banks are increasingly moving away from such collateral loans, so we do not have to look for a surety. However, we must realize that it is a relatively expensive loan, so the costs associated with it can significantly increase the cost of renovation.
If a lot of work and expenses await us in our property, we can look for money for refurbishment by applying for a mortgage loan. Also in this case, the banks will not interfere with what we spend the money borrowed, but we must prepare for a bit more formalities. First of all, such a loan for renovation is secured by a mortgage. So we have to prepare a quote for it to let the bank know what the value of the collateral is. In addition, the establishment of a mortgage is also a certain cost, and all formalities last a dozen or so days. In addition, throughout the loan period, we must have an insurance policy and make an assignment to the lender. Because large amounts are involved here, we must document our income well, and the bank will surely “scanned” our credit history. However, in return we will receive one of the cheapest loans on the market, with the possibility of spreading the repayment even for a dozen or so years. Thanks to this, our monthly installment will not be too burdensome for our home budget.
Loans or loans for renovation can help us do many jobs.
So if we are wondering if we need to renovate our house or apartment, do not hesitate to take advantage of the banks’ offers to enjoy the renovated kitchen, living room or bathroom.