Financing a new kitchen with a home loan
The question arises how the kitchen can be financed. Retailers have also recognized this and are offering their own loans directly on site. But these are usually not recommended.
Merchant loans for kitchen finance: often more expensive, rarely better
Buying a kitchen takes time. The large selection of available models must be viewed and a suitable variant must be found. Afterwards, nobody wants to deal with possible kitchen financing for a long time. The dealers come to meet their customers and offer the appropriate financing on the spot for immediate conclusion. It can hardly be more comfortable. But cheaper: With retailer loans, the interest is often higher than with normal installment loans. Or they are at an attractive zero percent, but then there are also pitfalls. The disadvantages of dealer loans in detail:
The home loan is the better option compared to the dealer loan. It offers low interest rates on fair terms. With it you can – as the name suggests – finance everything from 5,000 to 50,000 dollars, which makes living more beautiful. It is also possible to finance a kitchen.
This is how the housing loan works
In essence, it is an installment loan, but is reserved for homeowners. There is no credit check, the lenders are satisfied with proof of property ownership, for example via a land register extract. The home loan serves measures for your own property, so it is fundamentally earmarked, however, the bank does not request more precise proof of use. The terms of the housing loan can usually be freely agreed. This applies to the term and the monthly rate, but also to the payment modalities.
With many providers, borrowers can wait up to three months before calling up the approved loan amount for kitchen finance. Another alternative to a home loan: the normal installment loan. No evidence of property ownership is required, which makes it more straightforward overall. However, his interest is higher than that of the housing loan, which is why it is hardly worthwhile for property owners to finance the kitchen.
Finance the kitchen through building loans
Real estate buyers who want to finance their kitchens often want to do this through home finance. For good reason: there is much lower interest on a mortgage than on an installment loan. The hurdles are higher. Most banks do not co-finance furniture because they do not add value to the property.
In addition, the loan amount of the property may not be exceeded by the additional amount required. In addition, the total of the building finance increases by the amount needed for the kitchen, which is noticeable when entering the land register: the land register and notary fees are based on this. If the kitchen only costs 10,000 dollars, for example, the project would be much less attractive due to the increased land registry fees.