House clearance loan: plan costs and secure financing
08.07.2025
5
Minutes
Katrin Straub
Managing Director at nextsure
The costs of a house clearance quickly exceed €3,000 and pose a financial challenge for many people. An uncomplicated instalment loan can help here. We show you how to secure the financing in four steps and even benefit from tax advantages.
The topic in brief and concise terms
The cost of clearing out a household ranges from €1,200 to €5,000, depending on the size and amount of work involved.
An instalment loan without a specific purpose is the most flexible and predictable form of financing for this project.
You can deduct 20 per cent of labour costs from your tax bill as a household-related service (up to EUR 4,000 per year).
Cost analysis: what a house clearance really costs
The cost of a professional house clearance varies greatly and depends on several factors. For an 80-square-metre flat, you should expect costs between €1,500 and €2,000. For a house measuring 120 square metres, expenses can quickly rise to €3,500 to €5,000. Professional providers often charge between €25 and €40 per square metre, depending on the amount of household contents.
The main cost drivers include the volume of material to be disposed of and the associated container and landfill fees. Many people forget that the accessibility of the property also plays a role; the absence of a lift can increase the workload by up to 15 per cent. Allowances for well-preserved furniture or antiques can reduce the total cost by several hundred euros. Creating a detailed accurate household budget calculation helps determine the exact financing requirement. The precise calculation is the first step towards suitable financing.
Financing options: Finding the right loan for house clearance
To cover the costs of a house clearance, an instalment loan is the most common solution. A loan with no specific purpose offers maximum flexibility, as you can use the money for all incurred items. The average interest rates for such loans are currently around seven per cent. With a loan amount of 4,000 euros and a term of 48 months, this results in a manageable monthly instalment of around 95 euros.
In contrast to the expensive overdraft facility, whose interest rates often exceed twelve per cent, the instalment loan offers predictability through fixed repayments and a fixed term. Banks require collateral for lending, which often includes an assignment of salary. This secures the bank in case you fall behind with payments. Choosing the right loan model is crucial for an affordable financial burden.
Application process: Four steps to financing success
The process of obtaining a loan for a house clearance can be divided into four clear steps. This will help you secure the necessary financing quickly and efficiently:
Determine your needs: Obtain at least three quotes from clearance companies. Allow a buffer of ten to 15 per cent for unforeseen expenses.
Check your creditworthiness: Request a free self-disclosure report from Schufa. A good score is the basic requirement for favourable interest rates.
Compare offers: Use online comparison portals to review the effective annual interest rate and contractual terms of at least five banks.
Apply digitally: Submit the application online with the required documents, such as proof of income and bank statements. Digital identification speeds up the process so that you can secure quick loan disbursement.
A structured process helps you avoid pitfalls and obtain the best terms. Next, we will show you how to save additional money.
Expert tips: reduce costs and take advantage of tax benefits
You can significantly reduce the financial burden of clearing a household with smart planning. Our expert tip: Sell well-preserved items in advance via online platforms or at a car boot sale. This can often raise several hundred euros, reducing the amount you need to borrow. Another important lever is tax deductibility.
You can claim the labour costs of the clearance company as a “household-related service” under Section 35a of the German Income Tax Act. You can deduct twenty per cent of the labour and travel costs, up to a maximum of 4,000 euros per year, directly from your tax liability. For this, you need an official invoice and must pay by bank transfer. Cash payments are not recognised by the tax office. If you plan ahead, you can also consider whether making early preparations makes sense in order to minimise later costs. You should not overlook these potential savings in your overall assessment.
Special cases: What applies in the event of inheritance or moving into a care home
Financing a house clearance is subject to special rules when it arises as part of an inheritance. The costs of clearing out the property are treated as estate liabilities and can be deducted directly from the inheritance. This reduces any inheritance tax that may be payable. If several heirs are involved, the costs are divided in line with the inheritance share, which can reduce the burden on the individual by up to 50 per cent or more.
Moving into a care home is another common reason. Here too, the costs can often be claimed for tax purposes as exceptional expenses, provided a reasonable personal contribution has been exceeded. In such complex cases, financing can also be combined with other financial arrangements, such as the buyout of an heir. Sometimes the clearing-out is also part of a new start, similar to a financial fresh start after divorce. These special situations require particularly careful planning.
Conclusion: Mastering house clearance with the right financing
A house clearance represents a significant financial and organisational burden. Costs can quickly reach €5,000, but they can be managed well with a targeted loan. A personal instalment loan with unrestricted use offers the necessary flexibility and financial predictability. By comparing offers, using tax benefits and carrying out careful cost calculations, the financial burden can be noticeably reduced. That turns a major challenge into a manageable project.
Request an individual risk analysis now: Have your insurance situation checked free of charge and receive specific optimisation suggestions.
More useful links
Wikipedia provides a comprehensive overview of house clearances, including definitions and general information.
The Federal Statistical Office provides official statistics on deaths and life expectancy in Germany.
The Federal Ministry of Finance provides detailed information on inheritance and gift tax.
The Brandenburg Consumer Advice Centre provides information on the correct cancellation of contracts of deceased persons in the context of a house clearance.
The Federal Employment Agency provides information on the placement budget for unemployed people and further financial assistance.
Haufe.de explains the deductibility of estate administration costs for inheritance tax.
IWW provides information on the deductibility of costs for house clearance and flat clearance for inheritance tax.
FAQ
What documents do I need for a loan for a house clearance?
As a rule, you will need a valid identity card, the last three payslips, recent bank statements and the quotation from the clearance company. For self-employed people, business management analyses (BWA) are often required.
Can I get a loan for a house clearance despite a negative Schufa?
A loan with a negative Schufa entry is difficult, but not impossible. Some specialised brokers offer solutions, but often at significantly higher interest rates. An alternative can be a loan with a second, creditworthy applicant.
Is payment protection insurance worth it for a small loan?
For small loans under 10,000 euros, repayment protection insurance is usually disproportionately expensive and therefore not recommended. The cost of the insurance can significantly increase the overall cost of the loan.
What is the difference between the nominal interest rate and the effective interest rate?
The nominal interest rate refers to the pure interest costs for the loan. The effective annual interest rate additionally includes all other costs and fees, such as processing fees. When comparing loan offers, you should always use the effective annual interest rate as a basis.
Can I repay the loan for the house clearance early?
Yes, early repayment (special repayment) is possible at any time with instalment loans. Banks may charge an early repayment fee of up to one per cent of the outstanding balance for this. Many modern loan agreements allow free special repayments.
What happens if the value of the items exceeds the costs of the dissolution?
If the clearance company generates more from the sale of valuables than the clearance costs, you will be paid the difference. This should be clearly set out in the contract as a value offset with payment option.
