Determine funding needs
Before borrowing, you should determine exactly what the total renovation costs will be. Ideally, use a spreadsheet program and list each position here. If you do not know exactly what costs, for example, artisans charge, ask for a quote.
If you carry out the renovation completely without craftsmen or you already have materials and machines for the renovation, you can define this as a so-called personal contribution. You can also book existing capital under this. In any case, estimate your own contribution realistically. Do you have the necessary knowledge and also the time to carry out the renovation partially or completely yourself. If you are not honest with yourself at this point, you will have a problem with financing afterwards.
Set the loan amount
You now know your financing needs and have defined your own contribution. You can now deduct your own contribution in the form of working hours, already available materials, money and machines from the financing requirements. The result is the loan you need to take out to finance your renovation.
Before comparing specific loan offers, you should know what rate you can afford monthly. A budget that lists all income and expenditure is suitable for the determination. The result: Income – Expenditure is the amount you could afford as a monthly loan installment. This should be positive, otherwise no reputable bank would pay you a loan.
With the loan amount and the maximum possible credit rate determined from your budget, you can now compare offers with the help of our credit comparison calculator. Important: please be sure to include the “renovation” usage next to the loan amount. The calculator then shows you the cheapest rate depending on the duration.
A short term saves interest. In the credit comparison calculator, however, do not choose a term that is too short, since the interest rates given only apply if the credit rating is very good. You should be able to afford the loan rate well.
Apply for credit
Select a provider in the credit comparison calculator and fill out the electronic loan application. At the end, the individual loan offers are checked in real time and you are shown in the same step whether the selected bank or another bank would accept your application and at what interest rates. If you agree, you can either apply for the loan directly via online authentication via a video chat or via the so-called PostIdent procedure.