Credit Modernisation

If you want to modernise your home or need to carry out renovation work, this can be a big financial burden. Especially if an urgent renovation is needed on your home, financing out of your own pocket can often present you with a major challenge.

Modernisation can make sense to increase the living comfort in your own home and to increase the value of your property. But often the financial resources are not immediately available even for such projects. This is where the modernisation loan from Miro Kredit AG comes into play, which can help you put your modernisation plans into action.

How to apply for a modernisation loan

Applying for a modernisation loan with Miro Kredit AG in Switzerland is a fairly straightforward process. With our modernisation loan calculator, you have the option of adapting the loan to your individual possibilities and needs and submitting a non-binding loan application.

1. Select the loan amount: First, you can select the desired amount and term of your modernisation loan. Thanks to the modernisation loan calculator, you immediately get a transparent overview of the amount of the monthly instalments including the interest costs. Thus, you will receive a non-binding loan offer even before concluding the loan agreement.
2. Adjust the term: To adjust the monthly instalments to your budget, you can choose the term of the modernisation loan according to your personal requirements. As a general rule, the longer the term, the lower the monthly instalment. However, you should note that the interest costs are higher for longer terms.
3. Submit your application: Once you have decided on a modernisation loan with Miro Kredit AG, you can submit your loan application. You can easily fill out the application online by entering your personal data and information about your financial situation. Based on your additionally submitted documents, we can then check your creditworthiness in order to grant your desired loan.
4. Send the credit application: Now all you have to do is send the credit application you have filled out.
5. Loan approval and signing of the loan agreement: After a successful credit check, you will already receive a positive credit decision for your modernisation loan. Finally, all you have to do is sign the loan agreement on-site and you can start modernising your property!

What is the difference between construction financing and a modernisation loan?

The terms construction financing and modernisation loan are often used to describe different types of property financing. It is important that you know the differences between the two types of financing.

Classic construction financing refers to the financing of a new building or the purchase of a property. Thus, construction financing serves to enable you to purchase your own home or to finance the construction of a new house. The funds from a construction loan are usually only used to cover the purchase price of the property or to finance the construction. Repayment takes place over a long-term period and can often be spread over several decades.

A modernisation loan, on the other hand, is specifically for renovation or modernisation work on an existing property. With a modernisation loan, you as the owner can receive financial support to improve your living situation without purchasing a new property. This can include modernising bathrooms, renovating kitchens, installing new heating systems or other improvements. Unlike construction financing, a modernisation loan is usually a smaller loan amount that is repaid over a shorter period of time.

When is a modernisation loan worthwhile?

Basically, a modernisation loan is worthwhile if you have concrete plans to improve your property. This can include renovation, energy-efficient refurbishment or modernisation.

If these works help to increase living comfort, reduce energy consumption or increase the value of your property, a modernisation loan can be a sensible investment. Thus, a modernisation loan can be a practical option if you do not have the financial means for the planned work immediately.

Tax effects of modernisation

If you apply for a modernisation loan with Miro Kredit AG, interest and interest rates will accrue as with any other loan. However, you have a decisive tax advantage: as a private individual in Switzerland, you have the option of deducting the debt interest paid in the tax year up to a maximum of CHF 50,000 from your taxable income both for federal tax and for cantonal income tax. However, you should note that only the interest can actually be deducted from the taxes, but not the redemption payments.

Furthermore, the modernisations of your property itself can also have tax implications. These can be granted, for example, in the form of tax deductions or reductions for energy-efficient modernisation or renovation work. To find out more about the tax implications of modernisation, you should find out about the current tax regulations in your canton and seek professional advice if necessary.

Budget and time planning

1. Set a budget: First, you should prepare a detailed budget for your renovation project. You should take into account all the costs involved, including materials, labour costs, building permits and unforeseen expenses. A realistic budget is crucial to avoid financial problems and ultimately to choose the appropriate loan amount.
2. Obtain cost estimates: In the context of modernisation, renovation or refurbishment, it makes sense to obtain several cost estimates from different craftsmen or building contractors in order to get the best prices for the services you need. However, you should not only pay attention to the price, but also to the quality of the work and the reliability.
3. Create a timetable: If possible, create a detailed timetable for your renovation project that includes all phases and steps. This schedule should be realistic and at the same time include enough buffer for possible delays.
4. Check financing options: As soon as you know how expensive the modernisation will approximately be, you can already explore a suitable financing option. In addition to a modernisation loan, you can of course also use equity from savings. Choose the financing option that best suits your financial goals and needs.
5. Check your creditworthiness: Before you apply for a loan, check your creditworthiness. This way, a good credit rating can get you better terms.
6. Reserves for unforeseen expenses: As with any building project, you should ensure that you have extra funds available for unexpected costs. Renovation projects can often run into unforeseen problems, so it is advisable to have financial reserves.
7. Professional advice: If you are unsure about how to finance your renovation project, you can contact Miro Kredit AG for professional advice. We will help you determine the best financing option for your needs and create a realistic financing plan.

These options are available

1. Subsidies for individual measures: As the owner of a property, you have the option of receiving state subsidies for the renewal of heating systems. Most cantons now offer subsidies for environmentally friendly and efficient heating - including pellet heating systems and heat pumps. Building insulation can also be financially supported.
2. Subsidies for an overall renovation: If you meet one of two energy standards as part of the energy renovation, you can also receive a subsidy. You can choose between the state energy efficiency certificate (GEAK) or the Minergie standards.
3. Bonus payments: You may be entitled to bonus payments if you implement particularly efficient measures as part of the renovation that complies with the GEAK or Minergie guidelines.