home renovation loan

On the occasion of the lockdown, we all started to observe the house with a different eye. And we've all found things we don't like and want to change. But what if we don't have the capital? For us there is also the loan for home renovation.

Banks give you the possibility to secure a loan for the renovation or repair of your home with fast procedures and under specific conditions without notice.

What should I do before applying for a home improvement loan?

If you want to get a loan for home renovation or home repair, you should have decided the work you want to do. Based on this budget, the bank will approve or reject your request.

Before submitting a request to the bank, check the options that programs give you, such as "Home Savings II". This program finances the energy upgrading works of your home with a grant of up to 70% of the works.

What options do I have if I want a renovation loan?

There are specific banks that will help you with the loan for home repair - renovation. We have gathered your basic options to make your life a little easier.

1. Alpha Bank – Home Renovation Loan

These are some things you should know before asking Alpha Bank for a home renovation loan:

  • If the works you want to carry out are of a small extent, the bank grants you a loan of 5,000 to 15,000 euros, without a property note.
  • The loan is granted in two equal installments and you choose the repayment period, from 3 to 8 years.
  • If the work is of a larger extent, Alpha Bank offers you financing of up to 40,000 euros, this time with a pre-notification of the property. The repayment period reaches up to 20 years.
  • The interest rate of the housing program is variable based on the 3-month Euribor plus a fixed margin of 7%, for loans up to 15,000 euros. The margin drops to 4% for loans up to 40,000 euros.

The Alpha Home Renovation program allows you to choose a grace period of up to 6 months, during which you can only pay the interest on the loan. 📌 Installment Calculation: For a loan of 10,000 euros without collateral and a repayment period of 3 years, the installment amounts to 309.77 euros

❗ Expert tips:

  • You can choose a grace period of up to 6 months, during which you only pay the interest. Of course, this does not mean that the money is given to you, but it can make it easier for you to service the loan.
  • For every 1 euro of loan you earn 2 bonus points, which you can redeem in the network of partner companies of the bank's bonus program. In other words, you can choose equipment for your home using the bonus points.

2. National Bank – ESTIA Renovation

If you cooperate with the National Bank, there is no problem. And from here you can request a loan to renovate or repair your home, even online ! Before proceeding, you should know the following:

  • National Bank's ESTIA Renovation is offered without a mortgage note and finances up to 100% of the cost of renovation/repair work.
  • It has a maximum amount of 20,000 euros.
  • It is granted with a variable interest margin of 6.9% for the entire duration of the loan.
  • National Bank pays your loan in installments in up to three installments. The first installment is up to 30% of the total amount and is given as soon as the control of the reasonable cost of the work is finalized by the engineer collaborating with the bank.
  • The intermediate installment, again up to 30% of the loan, is given when the control for the completion of the work of the first installment is finalized.
  • The last installment is paid after the completion of all the works.

❗ Expert tips:

  • You earn points in National Bank's go4more rewards program by disbursing and paying each installment of your home improvement loan.
  • You can pay off the loan for the renovation of your home in installments or early without any charge.

What supporting documents will I need for a renovation loan?

Depending on the case, you will most likely need:

📍 Identity document: Police ID card - valid passport - ID card for serving in Security Forces and Special Forces - valid residence permit - confirmation of filing an application for the grant or renewal of a residence permit with complete supporting documents - foreigner or expatriate ID card (one of these ).

📍 Personal information: Some document that certifies your address and phone number, such as a recent DEKO bill, etc.

📍 Financial data: Bank statements of the last two or three years - recent monthly salary certificate if you are employed - recent proof of pension payment for pensioners - periodic VAT statements of the last quarter if you are self-employed or an entrepreneur as well as E3.

📍 Real estate: Last year's ENFIA statement - If you don't own any real estate then you will be asked to print the current "property statement" from Taxisnet.

📍 Works: For the works that will be carried out on the property, you will have to fill in the work budget form, while you will also be asked for the latest title deed.

We hope to help you get a renovation loan and build your dream home! If you want to compare loans and cards to always choose the most advantageous solution, we are here.

On our platform you can find information about all the banking products you are interested in within 2 minutes, so you can choose correctly and save money!