Are you planning to buy a new kitchen and are you considering how you can best finance your dream kitchen? Kitchens that meet modern demands are not available for little money. Simple, bespoke kitchens are available on the Internet from 4,000 USD. Island kitchens with electrical appliances cost from 6,000 USD.
An L-shaped kitchen with solid wood veneer including electrical appliances can cost 12,000 USD. And for a luxurious island kitchen with electrical appliances and cherry veneer, you have to leaf around 40,000 USD. The average cost of a new kitchen in Germany is around 8,000 USD. Such amounts can usually not be paid in cash out of one’s own pocket. Partial financing through a loan is usually inevitable.
We will inform you about different financing options for your new kitchen. If you choose the right kitchen finance from various loan offers, you can save a lot of money.
Take out a kitchen loan with Lite Lender
With Lite Lender’s loan calculator it is easy to finance your kitchen at low cost. Select the desired loan amount and the desired term. Which term is the right one? The duration should be based on how long you want to keep the kitchen. Many kitchens in Germany are used for 15 years and even longer. Such terms, however, cause interest costs to be too high. In our opinion, a maximum term of between 60 months and 84 months is appropriate for kitchen financing.
With one click you get to the free and non-binding loan inquiry that does not affect your Credit Bureau score. After submitting the form, Lite Lender automatically carries out a loan comparison for you from over 20 cheap direct banks and offers you the best offer.
Lite Lender is a market-leading credit comparison that offers customers several advantages:
Under the Ofina brand, a loan provider that offers a fully digitized loan for your kitchen takes part in the comparison. If this loan is approved and digitally signed, you will have the money in your account the next day.
With Best Bank, loan offers can be selected from P2P. This increases the likelihood of being awarded, even for people who do not fit into the scheme preferred by banks (high-income workers and civil servants).
Kitchen finance with Cream Bank
Cream Bank is an alternative to financial checks. The credit broker from Halle / Saale, like the financial check, provides a broadly diversified loan offering. Loan offers are made free of charge and without obligation.
In addition to installment loans, Cream Bank provides low-cost construction loans and so-called mortgage loans, which may also be used to finance the kitchen. The mortgage loan is an all-purpose loan that can be used in any way.
Cream Bank processes every credit request manually. This service has advantages and increases the likelihood of being awarded if creditworthiness and bank scores are only average or below average. Finally, Cream Bank can arrange Credit Bureau-free loans for amounts of $ 3,500, $ 5,000 or $ 7,500.
Credit Bureau-free loans are considered if banks are no longer willing to lend due to the negative characteristics. If you do not want kitchen finance to affect your creditworthiness with regard to future borrowing, you can also use loans without Credit Bureau. However, a prerequisite is a good to average income. In addition, the effective annual interest rates are quite high. They are currently at just over 11% annually.
Buy kitchen in installments
Virtually all retailers offer installments to their customers. In truth, it is usually a simple installment loan that is concluded with a partner bank of the dealer. As with any installment loan, the lending requirements of the respective credit bank must be met.
In particular, a credit check takes place, including information from credit bureaus. As a rule, the Credit Bureau is switched on. Getting financing from a dealer right away is easy. However, this does not have to be the cheapest financing solution.
Under no circumstances should you strike immediately. Sleep through the dealer’s financing offer and compare it with other financing options.
0 percent financing for kitchens
Kitchen finance without interest, such dealer offers sound cheap. And in individual cases they can actually be cheap. However, this is not always the case. Look closely at the fine print. Sometimes the zero percent only apply for a certain term, for example for 24 months.
Can you pay off the kitchen within this time? With a purchase price of 8,000 USD, you have to raise 334 USD per month. If the purchase price cannot be returned within the agreed period, refinancing often has to be done at excessive interest.
In some cases, the loan agreement for a zero percent financing is designed in such a way that a residual amount is mandatory, for which excessive interest is then payable throughout the remaining term of the loan. Also make sure that the 0 percent financing is flexible. Are special payments possible free of charge?
What about the purchase price? Should customers be prompted by the 0% financing offer to pay an excessive purchase price? 0 percent financing is not a consumer loan contract. The legally standardized protective rights for consumers do not automatically apply. They have to be contractually agreed, which rarely happens.
The right of withdrawal only applies to an express contractual agreement, i.e. not automatically. If the kitchen purchased with zero percent financing is faulty, you can withdraw from the purchase contract if necessary. The contract will then be reversed. However, the withdrawal does not apply to the loan concluded with the dealer’s partner bank with 0% interest.
You must continue to pay credit installments to the partner bank. The loan agreement remains effective. Zero percent financing is often given together with residual debt insurance. The insurance premiums are added to the net loan amount. The result: the effective interest rate and thus the borrowing costs rise. Are other credit products included in the sale? Do you have to conclude credit card or credit line contracts with 0 percent financing? This is often done on conditions that are not consumer-friendly.
Sometimes special models should be promoted with zero percent financing. Often it is a question of kitchens that do not work particularly well because they have poor quality.
Building loans and residential loans for kitchen finance
If you buy the kitchen as part of a construction project, you can try to accommodate the costs in the building loan. You will hardly find a cheaper financing solution. However, not all mortgage lenders are willing to include the kitchen financing in the overall financing, because furniture does not regularly add to the value of the property.
The lending limit also plays a role that cannot be exceeded by the additional credit requirement. Home loans are another way to get cheap kitchen finance. Housing loans are earmarked loans for modernization and renovation and for the related purchases. Built-in kitchens in particular can be financed with housing loans. The interest on residential loans is regularly lower than on normal installment loans. Loan amounts of up to 20,000 USD are sometimes possible up to 50,000 USD.
Some banks require proof of use. Housing loans are not entered in the land register. Borrowers therefore save the registration costs. Tenants only get real residential loans from a few banks, the interest of which is cheaper than that of installment loans. Fundamentally, ownership of a property is a precondition for award.
Promotional measures for kitchens
Under certain conditions, support measures – low-interest loans or grants – from the Astro Finance or other public institutions can be used.
Astro Finance grants come into consideration, for example, if a kitchen renovation or the purchase of a new kitchen can run under the titles of energy-efficient renovation and age-appropriate or wheelchair-friendly living.
Astro Finance funding programs 151 and 152 relate to energy-efficient renovation. Age-appropriate renovation is funded under program 159.
According to funding program 430, grants can be applied for energy-efficient renovation. There are investment grants for age-appropriate renovation under the conditions of funding backdrop 455.
Astro Finance loans and other Astro Finance funding measures must be applied for through a bank. The so-called house bank principle applies.
Investment grants in the energy sector, which can be applied for directly from Astro Finance, are an exception.
Bank loan vs dealer financing
Should I buy the new kitchen in installments from the dealer or better take out a bank loan that is independent of the purchase? Credit institutions that do not work with dealers naturally tend to condemn dealer financings, particularly zero percent financings. This is unfair in this generalization, although zero percent funding often has a number of hooks and eyes.
Perhaps in a first step you should not think about how to finance your kitchen of choice. Determine how much you can and want to spend on your kitchen and then choose the kitchen that suits your needs and budget from different retailers.
Compare offers from different retailers. Do not be irritated by the alleged discounts and discounts offered in advance. Often these are advertising tricks. The starting price on which discounts are to be granted is set too high. Take care of the financing after you have found the right kitchen model.
Compare cheap loans from direct banks, for example with the Lite Lender loan calculator or with the credit broker Cream Bank. Receive a loan offer from these financial service providers. Go to the retailer with the loan offer in your pocket and negotiate cash discount. Inquire with the retailer about the terms of the dealer financing and whether there are cash discount discounts if a dealer financing is concluded via the kitchen.
Have the dealer hand over all financing documents and all financing information.
Sleep through the whole thing. Then conclude the purchase contract and the cheapest kitchen finance.
Finance the kitchen: cheap credit solutions by comparison