Renovation Loan
Without Land Register Entry
Up to 50,000 Euros Without Notary - Fast Processing - No Land Register Costs - Combinable With Funding
What is a Renovation Loan Without Land Register Entry?
A renovation loan without land register entry (Modernisierungskredit ohne Grundbucheintrag) is a purpose-bound installment loan specifically designed for value-preserving or value-enhancing measures on residential properties. Unlike a traditional mortgage:
Advantages
- No land charge registration required
- Faster processing (often within one week)
- No notary and land register costs
- More flexible early repayment options
Disadvantages
- Higher interest rates (approx. 0.5-1% more)
- Shorter terms (usually max. 10 years)
- Stricter creditworthiness requirements
- Maximum approx. 50,000 euros possible
What Measures is This Loan Suitable For?
- Heat pump, pellet heating
- Thermal insulation
- Windows and doors
- Photovoltaic system
- Smart home systems
- Bathroom renovation
- Kitchen renovation
- Barrier-free conversion
- Attic conversion
- Extension/Conservatory
- Roof renovation
- Facade renovation
- Heating replacement
- Pipe renovation
- Electrical work
Generally Not Eligible:
Furniture and furnishings, pure garden design, cosmetic repairs, outdoor facilities without residential connection
Requirements and Conditions 2026
Basic Requirements
- ✓Legal age and residence in Germany
- ✓Owner of the property to be renovated
- ✓Sufficient creditworthiness (Schufa check)
- ✓Regular income
Required Documents
- ●Current land register extract (max. 6 months old)
- ●Income proof (3 months)
- ●Cost estimates from craftsmen
- ●For self-employed: BWA + tax assessments
Current Interest Rates and Terms (February 2026)
| Loan Amount | Term | Eff. Annual Rate | Example Payment |
|---|---|---|---|
| 10,000 Euros | 60 months | 3.49% - 6.99% | 182 - 198 Euros |
| 20,000 Euros | 84 months | 3.29% - 6.49% | 260 - 288 Euros |
| 30,000 Euros | 96 months | 3.19% - 5.99% | 354 - 388 Euros |
| 50,000 Euros | 120 months | 2.99% - 5.49% | 483 - 538 Euros |
Representative Example: Net loan amount 30,000 Euros, term 96 months, fixed borrowing rate 3.09% p.a., effective annual rate 3.19% p.a., monthly payment 354.17 Euros, total amount 34,000.32 Euros
Renovation Loan vs. Mortgage
| Criterion | Renovation Loan | Mortgage |
|---|---|---|
| Typical Amount | 5,000 - 50,000 Euros | From 30,000 Euros |
| Term | 2-10 years | 10-30 years |
| Interest Rate | 3-7% | 2.5-4% |
| Land Register Entry | No | Yes |
| Additional Costs | None | 1,000-3,000 Euros |
| Processing Time | Days | Weeks |
Recommendation
- Up to 30,000 Euros: Renovation loan is usually cheaper (despite higher interest) because there are no additional costs
- 30,000-50,000 Euros: Compare both options including all costs
- Above 50,000 Euros: Mortgage is usually more economical despite additional costs
Compare Renovation Loans
Find the best loan for your renovation project
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Frequently Asked Questions About Renovation Loans
Most banks offer renovation loans without land register entry up to 50,000 euros. Some providers go up to 75,000 euros but often require additional collateral.
For the renovation loan itself: no. However, for BAFA/KfW funding for energy-efficiency measures, a certified energy consultant is often required. The consultation costs are subsidized by 80%.
Yes, combining them is possible and recommended. You receive the funding first and only finance your own contribution. Important: Always submit the funding application before placing any orders.
For rented properties, interest is deductible as business expenses. For owner-occupied properties, only indirectly through craftsman costs (20% of up to 6,000 euros per year).
Sources and References
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