The modernisation loan as a targeted solution

For retrofitting a smart home system in an existing property, a modernisation loan is often a good option. Many banks offer these purpose-bound loans at lower interest rates than unsecured personal loans, often from as little as EUR 5,000. One key advantage is that for loan amounts up to around EUR 50,000, an entry in the land register is often not required. Such financing can often be applied for entirely digitally. If you would like to learn more about this option, you can find details in our guide to modernisation loans without land register entry.

The personal loan for maximum flexibility

A classic personal loan gives you complete flexibility, as the use of the loan amount is not tied to a specific purpose. You can use it both to buy the hardware for EUR 10,000 and to cover installation costs of EUR 3,000. This flexibility is ideal if you want to combine different components from different providers. You can use such a loan for any purpose to realise your project without restrictions. The terms typically range from 24 to 84 months.

Integration into property financing for new builds or major renovations

If you are planning a new build or carrying out a comprehensive renovation, integrating the smart home costs into the property financing is the most sensible approach. The additional EUR 15,000 to EUR 25,000 make less of an impact on the overall loan volume and benefit from the favourable mortgage interest rates. Plan these costs into your overall calculation from the outset to avoid the need for follow-up financing. In addition to the loan itself, you can significantly reduce the financial burden through government grants.