3 Important Tips for Choosing a Home Improvement Loan

Spring is traditionally a time for home renovation and refreshment.

People think about how to make their homes more beautiful and cozy, they work in the garden and undertake larger renovation projects, whether it's replacing the heating system, building a terrace or simply painting the walls.

"The coronavirus era has significantly increased people's interest in organizing their homes. People spend more time at home and in addition to the need to refresh their homes through renovation work, tinkering around the house also reduces stress levels, which is essential in today's world," said Taavi Mägi, CEO of the financial comparison platform Altero. "Often people lack their own funds for renovation work and there is a need to take out a loan," added Taavi Mägi.

3 important tips when choosing a renovation loan:

1. Get multiple quotes and compare them. There are many banks and credit providers on the market. Often people choose their home bank out of convenience or based on what they see in advertisements, without actually knowing what options they have. We recommend using the Altero.ee platform where you can get 10 or more offers from one place quickly through a single loan application.
2. Look at the annual percentage rate of charge. The best overview of loan costs is provided by the annual percentage rate of charge, which shows for all offers the annual cost of servicing the loan as a percentage uniformly. The interest rate is often only one component in pricing and additionally different providers display it on different bases.
3. Look at other conditions in addition to price. In addition to the interest rate and other standard criteria, loans also have other important differences that should be understood before signing the contract. For example, you should look at what the early termination fee is and how it works. What is the loan repayment frequency, how large is the monthly payment and how flexible is the repayment schedule. Loan products are different and the conditions offered are also different.

Altero is a financial comparison platform where a customer can FREE compare loan offers available on the market by filling out just one loan application. The Altero platform has over 15 loan provider partners.