Need a replacement for your home's aging heating system, or are the ravages of time gnawing away at the kitchen in your apartment? It's time to get the work done – your home is in urgent need of renovation .
With a loan , you have maximum flexibility and immediate liquidity to get started with your renovation. "If you are renovating a kitchen, for example, an advance payment often has to be made," says Paul Baumgartner, Manager of the BANK-now branch in Basel. "With us, you can get the amount you want as soon the statutory waiting period of 14 days ends." In the case of contracts that are not subject to the Swiss Consumer Credit Act (CCA), including credit amounts of more than CHF 80,000, payment is made at very short notice as no statutory waiting period has to be observed. "This gives our clients enormous flexibility when renovating their apartment or house," says the credit expert.
Baumgartner sees this as a decisive advantage compared to increasing a mortgage. With the latter, the application process can take considerably longer, depending on the situation. In addition, there is no guarantee that the mortgage increase will even be approved by the bank. Applications for smaller amounts of around CHF 20,000 to CHF 30,000 are usually declined. In other words, precisely the amount needed for a new kitchen or bathroom, for example.
The application process for a loan is perfectly manageable. To benefit from a timely loan for renovations, the borrower must provide a valid identity document and have a regular income. "We need the last three pay slips. In addition, of course, the CCA states that income must exceed expenditure and the budget must be sufficient to support the loan," Baumgartner explains. Anyone who would also like to benefit from the attractive conditions available for homeowners – an exclusive interest rate of between 5.9 % and 10.5 % – must additionally provide proof of registration in the Swiss land register.
"In many cases, clients come to us with relatively clear financial ideas," says Baumgartner. Often they have even received firm offers from tradesmen already. However, if applicants are still uncertain about whether they should take out a loan for the renovation, we are very happy to advise them personally and explain what individual financing options are available to them."