Financing a new roof: compare loans and optimise costs
08.05.2025
8
Minutes
Katrin Straub
Managing Director at nextsure
A new roof covering is a major investment, with costs often exceeding €25,000. Choosing the right loan is crucial to saving thousands of euros in interest. We show you how to make the financing of a new roof covering as effective as possible with a loan comparison and make use of government funding.
The topic in brief and concise terms
The costs for a new roof covering with insulation are between 200 and 300 euros per square metre.
A home improvement loan is often cheaper than a personal loan and available for up to €50,000 without an entry in the land register.
Government grants (BAFA/KfW) can reduce costs by up to 20 per cent or more.
Cost analysis: These are the costs you can expect for a new roof covering
The costs for a new roof covering vary greatly depending on the scope and material. A straightforward re-roofing without insulation costs between 100 and 150 euros per square metre. For a 150-square-metre roof, this results in costs of at least 15,000 euros. If an energy-efficient over-rafter insulation system is also installed in accordance with the Buildings Energy Act (GEG), the costs rise to 200 to 300 euros per square metre. The total costs for such a project then quickly come to 30,000 to 45,000 euros.
The following items make up the bulk of the costs:
Materials: The choice of roofing material has a major impact on the price. Concrete roof tiles are an affordable option at 25 to 35 euros per square metre, while high-quality slate tiles can cost up to 80 euros.
Labour: Labour costs for roofers account for around 40 to 50 per cent of total costs and depend on the complexity of the roof.
Insulation: Intermediate rafter insulation costs around 30 to 35 euros per square metre. It reduces later heating costs by up to 20 per cent.
Additional costs: Items such as scaffolding, disposal of old materials (especially in the case of asbestos) and the installation of roof windows can increase the cost by a further 5,000 to 10,000 euros.
Careful planning of these expenses is the first step towards determining the right loan amount and developing the optimal financing strategy.
Loan options at a glance: instalment loan, home improvement loan and building society loan
For financing your new roof covering, three main types of loan are available to you. The classic instalment loan is unrestricted and available quickly, often within 24 hours. However, the interest rates are comparatively high at four to eight per cent. It is suitable for amounts of up to around 50,000 euros and does not require a land registry entry.
The home improvement loan is purpose-bound and therefore has lower interest rates. Banks often offer it with interest rates between three and six per cent. Many institutions also grant home improvement loans of up to 50,000 euros without the costly entry in the land register. You simply need to prove that you are using the sum for the property.
A home savings loan is another alternative, especially if you are planning the renovation over the long term. It combines a savings phase with a later, low-interest loan. This option offers a high degree of interest-rate certainty, but requires more lead time. The right choice depends on your financial situation and the project timeframe.
Government subsidies: How to reduce the loan amount by up to 20 percent
Before you sign a loan agreement, you should check government subsidies. The Federal Office for Economic Affairs and Export Control (BAFA) and the Kreditanstalt für Wiederaufbau (KfW) offer attractive grants and loans. For individual measures such as roof insulation, BAFA grants a subsidy of up to 20 per cent of eligible costs. For investment costs of 30,000 euros, that corresponds to a subsidy of 6,000 euros.
KfW supports energy-efficient renovations with low-interest loans and repayment grants. In the programme “Residential buildings – Loan (261)”, you can receive a loan of up to 150,000 euros for a comprehensive renovation to an Efficiency House. The repayment grant can be as much as 45 per cent, which significantly reduces the amount to be repaid. Requirement for most grants is the involvement of a certified energy efficiency expert.
Additionally, KfW has offered an additional loan (358/359) of up to 120,000 euros for individual measures that have already received grants since 2024. A combination of BAFA grant and KfW loan is often possible and maximises your savings. This allows financing to be structured cleverly. Financing can be arranged cleverly. A careful review of the terms is crucial in order to select the right type of loan.
Expert tip: Negotiate loan terms wisely and save in the long term
A good loan interest rate is only half the battle. When comparing loans for your new roof covering, look out for flexible repayment terms. Free special repayments are an important lever for shortening the term and saving on interest costs. Even an annual special repayment of just five per cent of the loan amount can reduce the term by several years.
Compare the annual percentage rates of several providers, as these include all the costs of the loan. Even a one percentage point difference in interest can mean savings of over €1,500 over ten years on a loan of €30,000. Use online comparison portals to get an initial overview, but also speak directly with banks. Sometimes a better interest rate can be negotiated in a personal discussion, especially if you can offer additional security.
Our expert tip: Ask specifically about the possibility of payment breaks. If you encounter an unforeseen financial shortfall, the option to defer one or two instalments can create valuable breathing room. Careful monitoring of interest rate developments helps you find the right time to take out the loan. This way, you secure not only favourable but also flexible financing for your roof.
Conclusion: A systematic comparison leads to the optimal financing solution
Financing a new roof covering is a complex decision with long-term financial implications. Depending on the scope, costs can quickly exceed €45,000. A systematic comparison of different financing options is therefore essential. A purpose-specific home improvement loan often offers the best terms, with interest rates that can be up to three percentage points lower than those of a standard personal loan.
Always combine your loan with government grants from BAFA and KfW. A subsidy of 15 per cent or more is realistic for energy-efficiency measures and directly reduces the amount of borrowing required. Look out in the loan agreement for flexible terms such as extra repayments, so you can become debt-free faster. Careful planning and a detailed comparison will secure you the best possible financing and save you several thousand euros over the term.
Request an individual risk analysis now: Have your insurance situation reviewed free of charge and receive specific recommendations for improvement.
More useful links
KfW offers detailed information on grants for energy-efficient refurbishment, particularly roof insulation.
The Federal Statistical Office (Destatis) provides up-to-date data on construction prices and property price indices.
The Consumer Advice Centre offers a comprehensive guide to finding suitable funding programmes for your own home.
Finanztip provides information on various grants that can be used for roof refurbishment.
KfW explains the supplementary loan for individual measures on residential buildings.
The Consumer Advice Centre explains the benefits of thermal insulation for roofs, façades and basements for saving energy.
FAQ
How long does it take for a modernisation loan to be disbursed?
If no land registry entry is required, a modernisation loan is usually paid out within four to five working days after approval and submission of all documents.
Do I have to prove equity for a restructuring loan?
For a home improvement loan, explicit proof of equity is usually not required, as long as your creditworthiness is sufficient for the loan amount. However, equity can improve the loan terms.
Can I also use a loan for a roof repair?
Yes, a personal loan or a home improvement loan can also be used for smaller roof repairs. However, government funding is usually only available for comprehensive energy-efficient renovations.
What happens if the cost of the roof covering exceeds the loan?
If the costs exceed the loan amount, you must cover the difference from your own funds. Alternatively, you can ask your bank to increase the loan, although this will require a new credit check.
What documents do I need for a home improvement loan?
You will usually need the last three income statements, a copy of your identity card and proof of ownership of the property (e.g. an extract from the land registry).
Can I claim a roof renovation as a tax deduction?
Yes, tradesperson services for renovation and maintenance measures can be claimed for tax purposes. You can deduct 20 per cent of labour costs (up to a maximum of 1,200 euros per year) from your tax liability. As an alternative to BAFA/KfW funding, you can deduct energy-efficient refurbishment measures from tax over three years at a total of 20 per cent of the costs.
