Anyone who wants to convert a property, a plot of land or wants to carry out renovations or even plan a move house has to expect considerable costs. A construction, renovation or relocation loan provides the necessary funds to cover these costs. These usually involve larger loan sums and long contract terms. This alone means that a small deviation of a few percentage points in the interest rate can have a considerable impact. In order to obtain a good lending rate here, you should have a good credit rating. A good way to increase creditworthiness when granting credit is to include a second borrower in the credit application. The second borrower, who is often the spouse, uses his or her second income to increase the creditworthiness of the credit banks. More often other family members such as parents, children, grandparents or cousins are also named as second borrowers.
Compared to a personal loan, the property conversion loan is particularly favourable. The bank uses the property as security, which can be seized in the event of insolvency. In addition, the banks usually offer quite favourable conditions and a fairly large scope for negotiation with regard to the interest rate.
Uses for a construction, renovation or relocation loan
- Property conversion or extension
- Construction of a garage or private road
- Moving house (removal costs)
- Rental deposit
- Renovation work (new heating system, new roof etc.)
- Purchase of furniture (furniture loan)
The so-called rent deposit insurance is not recognised by every landlord. Not everyone has the money to put down a rental deposit of three months rent. A loan for the rent deposit could help you to make a new home affordable.
If you need to renovate, convert or even make urgent repairs, a renovation loan is a solution that can be calculated in advance.
Relocation (removal costs)
Moving house in Switzerland is not exactly cheap and not everyone has the financial means to cover all of the costs entailed. It requires a large vehicle and manpower. It is advisable to obtain several offers from different removal companies in advance. The price differences are often enormous. A relocation loan is the best way to finance the move over a fixed term.
In 2013, just under seven percent of Swiss citizens used their private credit for furniture and other furnishings.