Renovation loan

Here’s how the process works when you apply for a renovation loan:

1) Apply online

Fill in a simple application with details about the amount and repayment period.

2) Compare offers

Receive multiple loan offers from different lenders and choose the one that suits you best.

3) Sign and receive the funds

Approve the loan digitally and have the funds transferred directly to your account.

Vid ansökan via en låneförmedlare görs alltid en kreditupplysning. Axo Finans, Enklare, Plus 1, Sambla och Zmarta använder UC. Klara Lån använder Dun & Bradstreet för mindre lån och UC för större, medan Ferratum använder Creditsafe. Därför kan flera kreditupplysningar tas om du ansöker genom Compari.

Renovation loans – what and how

A renovation loan helps you finance major projects in your home, such as kitchen or bathroom renovations. Many choose a renovation loan when they want to improve their living space, make their home more functional, or increase the value of their property. With the loan, you can carry out everything from minor updates to extensive renovation projects, allowing you to realize your plans without having to wait to save the full amount.

A major advantage of renovation loans is that the interest rate is often lower than for unsecured loans, as lenders offer better terms when the loan is used for concrete improvements to the home. However, interest rates vary between banks and lenders, so it is always worthwhile to compare options before making a decision.

To get a renovation loan, you fill out an application and specify how much money you need for your project. The lender then reviews your finances and ensures that you can repay the loan without issues. This way, you can carry out the renovation both safely and responsibly.

What is a renovation loan?

A renovation loan is a loan specifically intended for home renovation, such as a kitchen or bathroom remodel. The loan amount can vary, often between 10,000 and 600,000 kr, depending on the lender and the scope of the project. Unlike private loans which can be used freely, a renovation loan is often tied to home improvements, which makes it more purposeful and sometimes offers better interest rates.

Renovation loans are flexible and can be used for various types of renovations – from minor updates to major kitchen and bathroom projects. Since the loan often involves significant amounts, a credit assessment is always conducted to ensure that you can manage the repayment over the loan term.

The difference between renovation loans and other loans

Renovation loans differ from other loans, such as personal loans or quick loans, in several ways. First, they are intended for a specific purpose – renovation – which can offer better terms than an unsecured loan. Personal loans can be used freely, but the interest rate is often higher because the lender has no connection to what the loan is used for.

Unlike small loans, such as SMS loans, renovation loans involve larger amounts and longer repayment periods. This makes the loan more long-term and structured, which is suitable for projects like kitchen or bathroom renovations.

When might a renovation loan be relevant?

Renovation loans are best when you want to make changes to your home and need to finance larger amounts over a longer period. Typical situations may include:

• Kitchen renovation: Replacing kitchen cabinets, countertops, or installing new appliances.
• Bathroom renovation: Updating bathroom fixtures, tiles, or installations.
• General renovation: Painting, replacing floors, or updating rooms for improved functionality and comfort.

By using a renovation loan, you can carry out these projects without having to wait to save the full amount. Comparing different lenders and their interest rates can give you better terms and lower the total cost of your renovation project.

How much can you borrow?

How much you can borrow with a renovation loan depends on several factors, such as your income, existing debts, and the scope of the project. Generally, you can borrow up to SEK 600,000, and sometimes up to SEK 800,000 with refinancing.

The higher the amount you borrow, the better terms the lender can often offer. Smaller loans may have a higher effective interest rate percentage-wise, as fees affect smaller amounts more. By comparing different options, you can find the loan that best suits your renovation project.

Costs of renovation loans

The cost of a renovation loan consists of interest and any fees. The effective interest rate varies between lenders and is affected by:

• Loan amount: Larger loans can offer better terms.
• Repayment period Longer terms increase the total interest cost.
• Your finances: Your repayment ability affects the interest rate you are offered.

Comparing different lenders helps you find the best renovation loan with lower costs and the ability to finance projects like kitchen or bathroom renovations in a smart way.

Advantages and disadvantages of renovation loans

Renovation loans offer many advantages for those looking to improve their home. One of the biggest benefits is that the interest rate is often lower than that of unsecured loans, making it cheaper to finance larger renovation projects over a longer period. Since the loan is used for concrete home improvements, the lender can offer more favorable terms, and you may receive an interest rate tailored to your financial situation.

Advantages:

• Ability to finance major renovations, such as kitchen or bathroom renovations.
• Flexible amounts and repayment periods.
• The interest rate is often lower than for unsecured loans.

Disadvantages:

• A long-term financial commitment.
• The interest rate affects the cost over time.
• Requires careful planning to avoid financial stress.

How do you apply for a renovation loan?

Applying for a renovation loan is simple and can be done entirely online:

1. Choose a lender: Compare different banks and lenders to find the best renovation loan for your project, whether it’s a kitchen renovation, bathroom renovation, or other home improvements.
2. Fill in the application: Enter the amount you want to borrow, the repayment period, and your personal details.
3. Credit assessment and signing: The lender conducts a quick credit assessment, and you approve the loan digitally. The funds are then transferred to your account, ready to be used for your renovation.

This makes it easy to finance your home renovation in a safe and responsible way, without unnecessary delays.

Tips for borrowing responsibly with a renovation loan

• Compare interest rates: Find the renovation loan with the lowest interest rate for your project.
• Plan your repayment: Make sure the monthly payment fits your budget.
• Have a clear plan: Know exactly what the loan will be used for, such as a kitchen or bathroom renovation.
• Setting a buffer: För oförutsedda kostnader under renoveringen.

Alternatives to renovation loans.

Even though a renovation loan is often the fastest way to finance projects like kitchen or bathroom remodels, or other home improvements, there are times when other solutions may be a better fit. For example, if you only need a small amount, want to spread the cost over a longer period, or already have money saved, it might be wise to consider alternatives.

A personal loan can then serve as an alternative. Even though the interest rate is often higher than a renovation loan, it can be a convenient way to finance smaller projects or supplement your existing plans. In addition, you can always choose to save up money before the project starts, which both reduces the need for a loan and gives you greater flexibility.

Therefore, it is important to carefully analyze your needs. Generally, a renovation loan is best for larger projects, such as kitchen or bathroom renovations. On the other hand, smaller projects or situations where you want to avoid high interest rates can often be handled better with other solutions. By comparing the alternatives, you can ultimately choose the setup that best matches both your finances and your renovation plans.

Summary and Conclusion

A renovation loan is a convenient way to finance larger home projects, such as a kitchen remodel, bathroom renovation, or other improvements. By comparing different lenders and terms, you can find the best renovation loan for your situation, get a good interest rate, and plan the repayment responsibly.

With the right plan, a renovation loan becomes a practical tool that helps you realize your renovation dreams without burdening your everyday finances.

Frequently asked questions about renovation loans.

We look forward to helping you find the best renovation loan for you

What is a renovation loan?

A renovation loan is a loan that helps you finance home projects, such as a kitchen remodel, bathroom renovation, or other major improvements. The loan is usually unsecured and is repaid over a fixed period.

How much can I borrow?

The amount varies between lenders, but common sums are between 10,000 and 600,000 kronor. With refinancing, some lenders can offer up to 800,000 kronor, depending on your finances.

What does a renovation loan cost?

The cost consists of interest and any fees. The interest rate varies depending on the lender, loan amount, and repayment period. Larger loans can yield a lower interest rate, while shorter loans often have a higher effective interest rate.

How long is the repayment period for renovation loans?

The repayment period varies, but most loans have a term of between 1 and 15 years. You can often adjust the repayment to fit your finances to make the monthly cost manageable.

Can I use the renovation loan for any renovation I want?

Yes, you can use the money freely for home renovations. Common examples include kitchen or bathroom remodeling, painting, flooring replacement, or smaller construction projects.

Is collateral required for a renovation loan?

The application is done online. You fill in your personal details and the desired amount, submit the application, and the lender performs a credit check. If the loan is approved, you will receive offers to compare before you accept.

Are there alternatives to renovation loans?

Yes, if you don't want to take out a loan, you can, for example, save up money before the project, use a personal loan, or combine savings with smaller lines of credit to finance the renovation.

How does a renovation loan work compared to a personal loan?

Renovation loans are specifically tailored for home projects and can sometimes have better terms for renovations, while personal loans can be used for more general purposes. Personal loans often require no collateral, but the interest rate can be higher than for a renovation loan used for a kitchen or bathroom renovation.

Can I get a renovation loan without UC?

Many lenders offer renovation loans without UC, which means your credit inquiry doesn't affect your credit rating with other lenders. This can be advantageous if you want to borrow money quickly for a renovation without impacting future borrowing opportunities.

What projects can be financed with a renovation loan?

With a renovation loan, you can finance almost all types of home renovations, from kitchen and bathroom remodels, new flooring and painting projects, to smaller construction projects. The loan gives you the freedom to use the money for what is needed most.

How quickly can I get the money with a renovation loan?

Many lenders pay out the money the same day the loan is approved, especially if you sign with BankID. This allows you to start renovation projects immediately without waiting for a long processing time.

Renovation loan

Find your renovation loan.

When you plan to take out a renovation loan, you should always start by carefully researching the market. This way, you can save a lot of money by finding the right renovation loan. Right now, you can also compare offers from up to 40 banks and lenders, and it's both completely free and 100% non-binding to apply.

After that, you can take your time to choose the offer that best suits you for your renovation, regardless of whether it's for a kitchen renovation, a bathroom renovation, or another kitchen remodel. The lenders tailor all loan offers to you and your finances. Once you have signed the agreement, either with BankID or via a paper contract, the lender will pay out the money directly to your account.

Submit your application

Loan application

Banks and lenders are ready to finance your project.

Finding the right financing for your renovation project can be difficult. There are many lenders, and it can be confusing to choose the right one. We do not recommend SMS loans—there are often better alternatives, such as renovation loans, personal loans, or unsecured loans. Here at Compari.se, we help you compare loans and find the best option for your project.

It only takes a simple application to borrow money for a renovation.

If you need an unsecured loan of up to 800,000 kr, a renovation loan can be the best choice. The same applies if you want to consolidate your loans for a better overview and terms. With us, you can compare several offers for free and with no obligation.

Submit your application