Few people can save money for housing reconstruction during their lives, especially if you have an average income that you can hardly cover the basic needs of your family. If you want to replace old-fashioned furniture with new ones or if you want to decorate a panel core, you can fulfill your dreams with a loan. What types of funding are available to you?
Mortgage loan for reconstruction
A mortgage loan is used not only for the purchase or construction of a property, but also for its modernization and maintenance. In the case of a major reconstruction, whose price is estimated at more than 300 thousand dollars, think about this type of loan. Its advantage lies in low interest rates, which range from approximately 3 to 4 percent.
Building savings loan for medium-sized reconstruction
If the total cost of the reconstruction does not exceed 300 thousand dollars, choose a loan for reconstruction from building savings. The condition is to meet the conditions for the allocation of the target amount:
- Have an agreed building savings for more than 2 years
- Have at least 40% of the savings target amount saved
Do you not meet these conditions? Apply for a bridging loan that is used to cover the time between entering into a contract and getting a building savings loan . You just have to save something or accept a higher interest rate.
Special-purpose housing loan for minor reconstruction
Smaller scale reconstructions can also be carried out using special-purpose consumer credit funds. Interest is more advantageous than the non-purpose variant, but the money must be used for housing and documented it. The funds are intended for the purchase of ‘fixed parts of the apartment’, such as windows, floors or wiring, but some contracts state that part of the money can be used to purchase appliances or equipment.
Non-bank loan for small reconstruction
For a small renovation of the housing or for the purchase of new furniture will serve a great non-bank loan. Its advantage is that you do not have to present any documents to the company. You can use the money for practically anything.
Whether you want to proceed with the overall reconstruction of the apartment or make minor adjustments, it is important to carefully calculate how much it will cost. Accordingly, decide on one of these loans.