Remediation loans are needed for a wide variety of measures. For example, for the installation of new windows, the modernization of the bathroom or for a new, high-quality thermal insulation. However, the reorganization loan is not known to every owner, so that often comes up with a variety of questions.
For which measures is a restructuring loan granted?
In general, a rehabilitation loan will be awarded if it improves the energy efficiency of the home or, for example, a new ventilation system is used for more sustainable energy consumption.
Usually, such a loan is used for a variety of energetic renovation work. These include, for example, comprehensive measures aimed at improving the energy efficiency of the home. Furthermore, but also includes the thermal insulation of the house. If doors, windows and heaters are replaced by newer models with more sustainable energy consumption, a restructuring loan is also available. This also applies if, for the same reason, the ventilation systems of the home are replaced.
Will such a loan also be given to tenants?
A reorganization loan is never given to tenants, but only to owners, as only they are authorized to make changes to their property.
Restructuring loans are generally only granted to real estate owners. The background for this is quite simple, because only owners are entitled to realize the most diverse changes to their possessions.
As a tenant, there is only the possibility to contact the landlord and talk to him about the necessary work, so that they are carried out.
Which loan sums are awarded?
The amount of the loan is also based on the necessary measures and personal creditworthiness. As a rule, a sum between 5,000 and 50,000 euros is possible.
The awarding of the loan amount also depends, for example, on your own credit rating and the desired project.
Generally, depending on the bank, such a loan will be given from 5,000 or 10,000 euros.
The maximum loan amount is usually 50,000 euros. However, there are also banks that offer their borrowers up to 60,000 or 80,000 euros.
Are there any funding opportunities?
Depending on the measure to be carried out, a reorganization loan is certainly eligible. This applies, for example, when the loan is taken to increase the energy efficiency of the house.
In general, it is quite possible for a reorganization loan to benefit from subsidies such as those offered by Bank. However, this depends on what measures should be taken. Renovations that improve the energy efficiency of the house, for example, are generally funded by the Bank.
However, it is not possible to apply for a loan or an investment grant directly from -Bank: This is always done through the bank that lends the restructuring loan.
However, if Bank approves the grant application, it will not pay the loan itself. The loan amount is always transferred from the “own” bank. This is because the loans are not issued by Bank itself but by the banks that belong to the Group.
What should be considered?
A reorganization loan is a special purpose loan and is therefore not at leisure. Term and loan amount should be adjusted. Furthermore, applicants must meet the various requirements of the banks.
It is important to note that a reorganization loan is a special purpose loan. This means that the loan can only be used for the measures that have been agreed with the bank.
It is also important that the loan amount and the duration of each measure should be adjusted. In addition, of course, the rate must match the own financial situation.
Similarly, a prospective borrower must meet the various requirements of the banks, so that they grant a reorganization loan. These include, for example, a safe, regular income and a good credit rating and a positive Private Credit information. In addition, the banks usually attach great importance to having a German checking account and a German residence.
Is a land register entry necessary for a reorganization loan?
Unlike mortgage lending, there is usually no entry in the land register for a reorganization loan. The banks may ask for additional collateral, such as life insurance.
As a rule, a reorganization loan, unlike a mortgage loan, does not result in a land register entry. This saves you the associated costs.
However, under certain circumstances, banks may ask for collateral. This does not necessarily have to be your own property. As collateral usually accepted by the banks as well as home savings or life insurance.
What costs must be reckoned with during a renovation?
Depending on the desired measure fall for this different cost. If these exceed the sum of 50,000 euros, mortgage lending offers itself as it covers higher loan amounts.
Of course, the costs always depend on the measures that are carried out. If you are not clear about this, it is advisable to get in advance a specialist and get an offer. Ideally, several offers are even obtained, so it is possible to choose the best and cheapest.
Should it turn out, according to the assessment of the expert, that a higher amount than € 50,000 is required for the desired refurbishment, then the completion of mortgage lending is generally advisable. A mortgage loan also covers larger sums of money.
What runtime is recommended?
Although the term should be as short as possible, the monthly installments still have to be affordable.
In general, the longer the term, the more interest must be paid. So if the term is shorter, less interest paid. However, one must not forget that the monthly installments are paid on time. Accordingly, while the term should be as short as possible but still be so long that it is possible without problems to pay the monthly installments.
Are special services offered?
The various banks offer different special services. This includes, for example, the option of being able to suspend a monthly rate or a variable repayment rate.
Depending on the bank, different special services are offered. For example, it may be possible to suspend a monthly installment in an emergency or a variable repayment installment is agreed.
Another option is the payment of special unscheduled repayments, which some banks offer at least once a year.
It is therefore worthwhile to compare the various loan offers well in this regard, since the various special services not only contribute to saving, but can simplify your own life quite. Of course, this applies especially in an emergency.