Buying your dream four corners is one of the most important goals set for young people. The newly acquired apartment, often after carrying out the necessary finishing work, finally becomes a place that accompanies us every day. In this way, it is subject to natural wear, requiring renewal over time. A renovation loan can be a valuable cash injection. Let’s see who offers such services.
A flat or house, like any part of our everyday life that we use and use without restrictions, is subject to wear and tear. The walls are dirty, the curtains fade, the carpet is tossed, the wooden furniture is damaged, the tiles break, the household appliances are broken… This is how we know that our premises let us know that it is time to renovate for a long time. However, the decision to undertake renovation works may be postponed for another reason – financial resources.
To carry out repairs, we usually assume such a wide range of changes in our four angles that the cost of such work is difficult to reconcile with current expenses. However, prolonged placement does not have to be the only remarkable solution. If we do not want to wait for renovation any longer, and there is a gap in the budget – a non-bank renovation loan may be helpful.
Renovation loan – what is worth knowing about it?
When looking for financial support to carry out renovation work in the apartment, many consumers are looking for the banking sector. Indeed, banks have a very extensive range of loans that can meet the financial requirements associated with the renovation of our four corners. However, it is worth remembering that before we receive financial support, banks carry out a very thorough and extensive verification – first of all with creditworthiness. During this procedure, the amount of income obtained is checked, as well as the history of repayment of liabilities in the Credit Information Bureau. The length and severity of verification can act as a deterrent to many people. What is the alternative? Renovation loan!
As with credit cards and other specific banking products, non-bank companies have intensively developed competitive services in recent years. The goal is simple – to offer services for people who for various reasons do not want to apply for a regular bank loan. Of course, loan companies usually don’t offer dedicated loans under the name “renovation loan”. For this purpose, you can simply take out a long-term loan, made available by a wide range of companies offering very large amounts that can meet the needs of many consumers.
What distinguishes renovation loans from renovation loans is undoubtedly the greater convenience in applying for financing. Not only payday loans but also long-term loans can be obtained online today by submitting an application from behind a monitor screen or a smartphone, without leaving home. What’s more, the market offer assumes very diverse consumer requirements as to the amount and size of the renovation. Renovation loans can cover expenses for minor corrections and major renovations.
Loan for apartment renovation
If we are planning to renovate a flat that usually belongs to the smaller ones, i.e. a flat, e.g. in a block of flats or a tenement house, the potential cost of such an investment should be relatively lower than in the case of a house. In such a situation, finally, typical investments go away, e.g. in the garden, sidewalk, terrace, roof, etc.
As you can see, there are many attractive non-bank loans for large amounts on the market. Repayment deadlines can, in turn, allow you to repay funds in optimally distributed installments, and the withdrawal time means that you can go to renovation immediately. In this field, it is an undoubted advantage for people who care about the efficient and convenient renovation of their four corners.
Home renovation loan
As mentioned above, looking for a loan for home renovation, there are potentially more places and areas that we can renovate. As a result, the total cost of the investment may turn out to be considerable, which in turn will require sufficient financial support. In this field, however, there are many loan companies that can meet the more demanding consumer requirements. Long-term liabilities that you can successfully take out as a home renovation loan.
Loan companies that offer relatively large payables include, among others Agree Bank (up to $ 25,000 from 12 to 60 months), ProfiCredit (up to $ 25,000 from 3 to 36 months), EuroLoan (up to $ 40,000 from 5 to 60 months) and finally Smartney (up to $ 60,000 from 12 to 60 months) months). Although consumers have to wait a little longer for verification (up to 48 hours) for long-term loans for these larger amounts, it is still relatively small compared to bank loans.
Renovation costs – how to do it properly?
Before we renovate an apartment or house and submit an application for financial support in the form of a loan, it is necessary to prepare a renovation cost estimate. This is an official document that should plan and separate all activities that create renovation costs. In the case of banks, a cost estimate is necessary to get a loan – for loans, in turn, there is no such requirement and this is more of a tip. It lets you know how much financial outlays will cover renovation works and what you will have to do as part of them. It’s a good solution for people who like order and planned activities.
Which activities should the cost estimate take into account?
- The cost of purchasing all necessary building / finishing materials.
- Labor costs if the work is carried out by a professional renovation and construction team.
- All costs associated with the transport of materials from the construction store, if necessary.
Mortgage loan for renovation – you better think about a bank loan
Repair renovation is uneven, which is why a loan to renovate an apartment or house may not always be a sufficient and optimal solution. Finally, there are general and very extensive repairs, which with their costs can reach amounts of 80,000-100,000 or even larger sums. If the renovation of our four corners is therefore particularly expensive, then the optimal solution may be to use a mortgage for renovation in the bank. This sector has an advantage in one field – it is able to borrow more. What do you need to prepare for applying for this form of support?
First of all, it is necessary to prepare for verification of credit history and the amount of monthly income along with the source of income and the contract on which we are employed. The bank will also check our monthly expenses and other liabilities. Unfortunately, all the formalities are prolonging the process of applying for a loan, and everything is prolonging the title mortgage – as the loan collateral, the bank becomes a co-owner of the repaired apartment for the time of repayment. This is the price of a clearly higher loan amount that the bank is ready to grant us.
Advantages of loans for renovation
It is time to present the biggest advantages and disadvantages associated with applying for a non-bank loan for the renovation of an apartment or house. First, let’s look at the strengths of this method of financing the cost of renovating our four corners.
- A very rich offer.
There is no shortage of trustworthy non-bank companies offering safe and trustworthy installment loans. Consumers have at their disposal companies that offer both online loans and cash loans. Our ranking, in which we have collected installment loans, illustrates well the extent to which consumers today have a choice.
- Relatively less formalities and certificates.
You don’t usually need too many additional documents to submit a loan application, which results in a relatively short time of verification of the consumer loan application.
- Significantly shorter time for applying for financial support.
By limiting the list of required formalities and simplifying the application process itself, the time in which we obtain a loan can be up to several minutes.
- Some loans can also be obtained on weekends or late evenings.
There are many loan companies on the market that do not limit their activities to standard hours and business days. If urgent funding is needed, there is no shortage of companies operating until late in the evening or even on weekends.
- More privacy.
It is not necessary to indicate the purpose for which we take out a loan and we do not have to present the course of spending the borrowed money to the company that granted the loan to us.
- Funds are paid out at once, not in several tranches.
In the case of loans for general repairs at banks, they are usually paid out in tranches. A non-banking company, as it lends funds for any purpose, provides financial support once, paying out the loan in advance.
- Flexible loan amounts.
The loan companies market offers very large amounts to be borrowed, in flexible ranges – from several dozen zlotys to even several dozen thousand zlotys.
- There are companies that make first loans at no extra cost.
Some loan companies anticipate offering their first free loan. We pay back as much as we borrowed.
Disadvantages of loans for renovation
In addition to the number of benefits we have presented above, however, one should not forget about the disadvantages that can be associated with applying for a non-bank loan. In order to obtain funds for the desired renovation of your house or apartment, it is worth remembering the following parameters.
- Most loans are for a relatively short and not very flexible period.
For some consumers, paying off several thousand installments every month can be a heavy burden for a regular household budget. These, of course, cannot be broken down into such low amounts as in the case of bank loans, because non-bank companies do not borrow large sums for many years.
- Loan costs are usually relatively high.
When we learn about all the costs that the lender adds to the sum of money lent to us, it often turns out that we pay back much more than we borrow. In combination with relatively short repayment terms, high costs also affect the high monthly loan installment.
- The maximum loan amount may not be enough for many consumers.
Although the above-mentioned parameters of sample installment loans may sound attractive to many consumers, there will probably be plenty of people who state that e.g. the maximum of $ 60,000 offered by Smartney is not enough. A lot of renovations, especially in the case of houses and plots they stand on, can absorb much larger sums. If they are not covered by the loan funds, the consumer may need to look at cash loans at the bank.