The most common types of loans for reconstruction

Reconstruction today can be solved by building savings, a special-purpose loan for reconstruction, or a special-purpose loan. Learn how it differs.

Building savings loans


It is a classic well known to all, which I described in detail in the article how to use building savings for reconstruction. Here I would like to compare current offers of banks and introduce you to its practical use.

Banks today offer 2 types of building savings loans. The first type is represented by Sean Cole (Good Finance) and under the second type, I would hide all other building societies.

What is the other party

This building savings bank differs from other savings banks by a product called Loan from Good Finance. What’s going on? It is a building savings loan, where you do not have to deposit any down payment (for other building societies you do not also), but at the same time, you do not even have to grow up.

So, after repaying the loan, you repay the loan with the same installment as your mortgage.

The best example is

Let’s say you need 500,000 USD to renovate an apartment. With a bowler hat it could be set as follows:

Besides, of course, Good Finance also has a classic bridging loan (and a building savings loan). It already behaves like a classic building savings.

How far do you reach with Good Finance?

How far do you reach with Good Finance?

This loan is useful if you need a simple loan quickly. I can prepare it for a signature in a few minutes. It is not excessive, the administration is really simple.

Other building societies

This includes all building societies whose loans typically have two phases:

  1. Bridging credit
  2. Building savings loan.

The details of this function are described in the article how to use building savings for reconstruction, therefore I give an example to compare with the previous loan.

Again, an example

Today, the loan from Good Lender Building Society is a good representative because at the date of writing this article it offers a quality product in the price / performance ratio. I mean, it has a low interest rate for both the bridging loan (4.89%) and the regular loan (2.99%).

You can extend the maturity period up to 22 years and the maximum loan amount without collateral is USD 750,000. Let us compare the same amounts using the apartment reconstruction from the previous example:

How far do you get with Good Lender?

Special-purpose loan for reconstruction


This is a consumer loan that the bank lends to you for a predetermined purpose, that is, anything related to housing. Maybe to renovate the bathroom.

A clear example

If we stick to the reconstruction of the apartment for 500 000 USD, then the loan could look like this:

Why did I choose GFIC? Its interest rate is the lowest for this type of loan. Furthermore, you can borrow for example for the reconstruction of the apartment up to 1 000 000 USD without any security.

This will in turn overtake building savings, where you can go to 750 000 USD, respectively. 800 000 USD, the disadvantage is almost half shorter maturity.

How far you can reach GFIC

Special-purpose loan

Special-purpose loan

It is a loan of the same construction as in point 2, but with the difference that here you do not have to worry about documenting receipts or invoices.

The last example

I stick to the reconstruction of the apartment for 500 000 USD, the loan can look like this:

As you can see, this is a short-term loan, with relatively high interest rates, which places demands on the client’s income. In other words, you have to have such a loan. The high interest is that the bank does not ask what you want.

How far you will reach GFIC II

Are you planning to renovate your apartment and need to take out a loan? Consult with me without obligation and we will definitely find what will suit you.

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