Mortgage for what purpose to use?

Hello

I have a question: what exactly can a mortgage loan be used for?
I didn’t mean for a new car or something like that :)

I understand that it’s clear for modernizing/renovating the house, but is it also allowed to buy, for example, new furniture with it?

Best regards

Maik

As a rule, a construction measure must take place. That means an object must be created or modernized. In this context, for example, in the case of new construction, things like a kitchen, which represents an increase in value for the construction project, can also be co-financed. Pure purchases of furnishings will probably not be accepted by the bank. Moreover, it would be a very expensive matter since the durations and certain conditions do not necessarily favor the use as a consumer loan. ([Allein schon die Gebühren für die Eintragung einer Grundschuld]) Additionally, I would be reluctant to give the bank the right to auction my house if I can no longer pay the installments for the living room purchased with my mortgage loan. In short – possible as a component within limits – unsuitable for sole use. However, the bank can also provide you with more detailed information. Depending on the situation, they may be more or less open to it.

The mortgage should not only be for the furnishings. The case is like this: I am taking over the house from my father and wanted to install a new front door and stairs, new electrical installation, bathroom, new doors and flooring, and insulate the ceiling (wooden ceiling) and install a new heating system. Then I thought of a new kitchen, living room (cabinet, sofa, table) and bedroom (bed, wardrobe) Regards Maik

I think you need to talk to the bank about that. If it’s not going to be 100% financing, then you can also cover part of it with equity. But you just have to ask. Maybe you can get a loan where you don’t have to submit everything by invoice. Then it’s no problem anyway.