Loan for apartment renovation

If we want to take a loan to renovate our apartment, we basically have two options. We can choose a cash loan and a mortgage. Which one to choose depends on the amount you want to borrow and the loan period.

We can take one of three types of bank loans for the renovation of an apartment or house. They differ mainly in the amount of interest, repayment length and security. In this case, the highest interest-bearing loan will be a cash loan, which can be used for any purpose, so also for renovation.

The actual interest rate ranges from 9% to even 35%, depending on the bank’s offer. Taking out a cash loan in the event of a house or apartment renovation will come out the most expensive for us, but the easiest way to obtain the necessary funds is to get it.

Let’s say we are interested in the amount of USD 8,000


The time in which we want to repay the loan is 12 months. The monthly installment should be from 700 USD to 800 USD, depending on the bank and its offer. Considering the mortgage, it may turn out cheaper, but we will face additional security charges – the costs will increase significantly.

The situation is different when we want to borrow a much higher amount, e.g. USD 40,000. Then we pay the bank a lot more than when paying the same amount of mortgage.

Additional costs associated with, for example, collateral and property valuation are nothing compared to the high real interest rate of the cash loan.

Another good way to get money to refurbish an apartment or house is a mortgage. This is definitely the cheapest solution for this type of expense.

The mortgage loan is secured by the borrower’s real estate

The mortgage loan is secured by the borrower

So if we are the owners of real estate, in the form of a construction plot, a house or even a renovated apartment, we can take out a loan against her. The repayment of such liability may be spread over even 30 years. Unfortunately, it is a loan for higher amounts, which starts from USD 20,000.

There is one more solution for people with a bad credit history. These are non-bank loans, among others, at companies such as Good Finance or Good Credit.

Although this type of loan turns out to be relatively expensive, for some people it is the only way to finance an inexpensive renovation. The amount we can borrow is much lower compared to the previously described types of loans, but it is much easier to access and requires no collateral.

To take advantage of a 10-year cash loan

For most of us, 10 years is a very long time, although for people who decide to take out a mortgage for such a repayment period, not so much at all. The situation is different for those who intend to enlist cash loan spread over 120 months or 10 years – unfortunately, it is getting harder and harder.

To take advantage of a 10-year cash loan

To take advantage of a 10-year cash loan

You must have a very good credit history. What’s more, not every bank will be willing to grant such a loan to even its best client. The greatest chance for a cash loan spread over at least 120 installments is given to people working in specific professions, retirees of the Ministry of Interior and Administration, people in freelancers such as a doctor, lawyer or architect.

So if we are going to apply for a cash loan that can be used for any purpose and spread the repayment period over 10 years,
let’s consider shortening the repayment time and possibly reducing the loan amount. Of course, given your real debt repayment options.

Such a long loan term can give us a boost if we do not knowingly calculate whether we can afford it. You can tighten the belt for a few months, but not for a few years.

The amount that can be obtained in the form of a cash loan reaches up to USD 150,000. And the repayment period of such an obligation can theoretically be up to 10 years. Unfortunately, banks are not willing to pay any amount for a period of 120 installments, so it remains to consider reducing the loan period to even 84 months or 7 years.

It is also worth thinking about another solution

It is also worth thinking about another solution

For example, if you intend to spend the funds obtained from the loan on the purchase of a car, then it is better to take a car loan. if while we intend to use the borrowed cash for real estate, e.g. a construction plot, a mortgage will be a much better solution and probably much cheaper.

A loan is another way to raise funds for a long repayment period mortgage. It can be obtained against the collateral of a house, apartment, etc.

The loan term of such an obligation may reach even 25 years. As part of the mortgage loan, we will receive cash that can be used for any purpose, and the interest rate is the lowest considering all other types of loans for individual clients.