Compare between loans – what kind of a home improvement loan would suit you best?
You can apply either for a secured or an unsecured loan to finance a home improvement. You can also apply for home improvement finance from a number of our partner retailers.
Before you apply for a home improvement loan, weigh the amount of the loan you need and take your time to think of the various options. Our loan types differ in terms, for example, of their collateral, interest rate and maximum loan amount.
Bank Loan, or the home improvement loan, with collateral starting from 20,000 euros
You can apply for a secured Bank Loan for home improvement starting from 20,000 euros with no upper limit. You can apply for the loan alone or with another person irrespective of whether you are an OP customer.
The interest rate for a secured loan is typically lower than that for an unsecured loan because collateral helps secure loan repayment to the bank. The loan interest rate is determined separately for each customer – it is typically 3–5%.
For the Bank Loan, you need collateral accepted by the bank. In general, a residential property, such as an owner-occupied home, a buy-to-let home or a holiday home, is used as collateral. The home doesn’t need to be free from debt to be used as collateral for the loan. Other assets, such as forest, investments or savings, can also be used as collateral.
As an OP cooperative bank owner-customer, you earn OP bonuses on the secured Bank Loan.
OP Tailored Consumer Credit – home improvement loan of up to 30,000 euros without collateral
If you want to get loan without collateral and money into your account in one go, apply for OP Tailored Consumer Credit. You can apply for a home improvement loan without collateral up to 30,000 euros. The loan interest rate consists of a margin of 3,5–10,95 % + a 3-month Euribor.
Submit the credit application in the op.fi service or OP-mobile. You’ll get a credit decision within two banking days. After you have accepted the credit agreement, you’ll receive the money in your account.
Please note that only OP customers can apply for unsecured loans.
Home improvement financing directly from a retailer – for any bank’s customers
You can take out finance for home improvement directly from a retailer when you know from where you buy. You can apply for unsecured finance of up to 50,000 euros. Fill in a financing application for OP’s partner retailer online to receive a decision right away.
Loan for renovation
Renovation means a more extensive repair. It includes work such as replacing the house’s heating, plumbing, ventilation and electric systems. For example, a secured consumer loan, or Bank Loan, can be used to finance renovation. If the renovation improves your home's energy efficiency, you can finance the renovation project with OP's Energy Efficiency Loan.
Read more about the Energy Efficiency Loan
If you live in an owner-occupied home, housing company renovations, such as a pipeline renovation, window replacement, facade renovation or roofing renovation, are financed by taking out a housing company loan. The housing company loan is repaid monthly through a charge for common capital expenditures.
For paying off the housing company loan, you can apply for a secured home loan and pay off your share of the housing company loan in one go.
How to apply for a home improvement loan?
You can apply for OP Tailored Consumer Credit and Bank Loan in the op.fi service or on OP-mobile.
You'll get a credit decision on unsecured OP Tailored Consumer Credit within two banking days, at the latest. When you finish your application and accept the credit agreement, you’ll receive the money in your account.
You’ll commonly receive a secured Bank Loan decision within 1–3 days.
Why take out a home improvement loan?
A home improvement loan enables you to spread the home improvement costs over a longer period of time and makes it easier for you to plan your finances. In addition, instead of using your savings for a home improvement, you can, for example, invest them to receive a better return. Home improvement also adds value to your home and is an investment for the future.
Please remember that if your home improvement is performed by a professional, you can get some of the repair costs back by claiming tax credit for household expenses.
Flexibility to your home improvement loan according to your circumstances
You can anytime repay a larger amount than the agreed monthly repayment towards an unsecured or secured home improvement loan. You can also pay off the loan in full.
When applying for home improvement loan, you agree on the size and schedule of the repayments for paying back your loan. However, you can along the way change the payment amount and the loan’s maturity date or apply for a grace period or a repayment holiday on the op.fi service.
