Renovation loan simulation
Those who want to renovate or renovate their home or apartment can borrow money for this. Thanks to a renovation loan, as a renovator you do not have to pay for the costs yourself. The lender will, in that case, borrow money to finance the project. In exchange, the financial institution requests that the borrower pay back the loan little by little. The borrower agrees that the loan will be repaid monthly, including the interest. Those interests are a fee that the lender charges in exchange for the risk he takes. That agreement is laid down in a contract. The fixed term of the loan is also included in the contract.
The majority of financial institutions offer the possibility to do a renovation loan simulation online. Thanks to a renovation simulation loan, you as a borrower can estimate exactly how much a loan would cost. In some cases, it is possible to take out a loan or apply for a loan online immediately after a renovation simulation loan.
Renovation loan limits
The financial institutions must, in any case, adhere to a number of rules when someone applies for a renovation loan. To begin with, they must adhere to certain limits when someone borrows a certain amount. For example, lenders must take into account the maximum repayment period. This is at least 24 months and can go up to 240 months, depending on the amount borrowed. The maximum duration of 240 months, for example, only applies if someone borrows more than $ 37,000. The maximum duration is also clearly addressed in the renovation simulation loan.
The borrower must then again provide proof of the planned renovations. This can be, for example, an expert report or a detailed specification. In this way, the lender knows that the customer does want to do an actual renovation. For example, anyone who wants to buy a washing machine will not be able to request a renovation loan. For such purchases it is possible, for example, to take out a personal loan. Such purchases can also be financed with a credit card.
Cheaper green loans
Renovators who can prove that they want to do an environmentally friendly renovation can apply for green loans. Green loans are usually cheaper than renovation loans. It is possible to take out a green loan for, for example, installing solar panels or installing extra insulation.
Those who cannot repay their loan will be blacklisted by the money lender. The financial institutions are obliged to consult that list before they give someone a loan.
Furthermore, financial institutions may decide to terminate the loan contract early. In that case, the borrower must immediately repay the amount due, including possible additional costs. The moneylender can also (if there is one) use one of the securities, such as collateral or a person who has given a guarantee.
Simulation renovation loans
On our site, you can compare different providers based on a renovation loan simulation. We have put all available renovation loans in a well-arranged list. This way you as a consumer know which lenders can get you a cheap renovation loan. The rates that we use on our site and in the simulation are the official rates that the private lender or lenders publish on their site.
The rates that private lender puts forward in their offices do not usually differ from the rates that they publish on their site. That is, for example, the case with a mortgage loan. These rates are based on the personal and financial situation of the borrower. Remember: Borrowing money also costs money.