Construction financing comparison
What you can learn here
Many Germans cherish the desire to live in their own four walls. The desire is particularly strong among those over 35 years of age. Here lies the home ownership rate is very low by European standards. Less than half live in their own home. The construction financing comparison helps Konto-Kredit-Vergleich.de future homeowners the dream of owning their own four walls through good interest rates to keep affordable
When choosing the right one construction financing - lovingly often too "builder“, it helps to request several providers at the same time. Because in order to find the best possible offer with the lowest interest rates, a comparison of real estate loans is essential.
Home loan comparison: find your home loan
- Construction financing is used to finance a used or new property. You can also get construction financing as a follow-up financing use. This case comes into play when your existing home loan expires. With some banks, you can also use the construction financing to mortgage your property and use the capital elsewhere.
- A construction loan is a special loan. differences to one installment loan There are no restrictions with regard to fixed interest rates, earmarking and the securing of the loan via a land charge.
- When buying a property, a lot of money changes hands. Therefore, you should proceed carefully and compare carefully. In addition to a low interest rate, make sure you have a good overall package and sufficient flexibility thanks to the option of special repayment
- In the above Baufi comparison, there are many well-known construction financiers. After your request, they can help you in a personal conversation. Often several consultants have several financing concepts - listen to a few and then decide.
Construction financing comparison: differences to an installment loan
The amount of a real estate loan is many times greater than that of an installment loan. The same applies to the term: While an installment loan is concluded for a few months or years, construction financing can take decades. For these reasons, three central points are essential when concluding construction financing:
The term of construction financing is usually between five and 30 years. The interest rate is fixed during the term of the loan. The dependence on the key interest rate is thus contractually eliminated. If the loan has not been paid off by the end of the term, the interest rate will be renegotiated for follow-up financing.
After 10 years, mortgage lending can always be terminated unilaterally by the borrower. Early termination can be worthwhile if interest rates have fallen. Debt rescheduling can save you money. Or pay back the loan faster. In the example calculation could the loan 10 years earlier by rescheduling the construction financing be paid back.
In the case of construction financing, the use of the loan is specified. The loan may only be used to buy a house, apartment or land. The accumulating NYou have to finance additional costs for broker, notary or real estate transfer tax yourself. However, some banks make exceptions to this principle and offer financing for more than 100 % (including additional costs).
Since large sums of money are lent in the case of construction financing, the bank protects itself by registering a mortgage. If the borrower can no longer service the construction financing, the bank can collect the registered land charge by foreclosure of the property.
If the property is auctioned for a higher price than the registered mortgage, the borrower can keep the difference.
When comparing construction financing, additional costs should not be neglected
The additional costs are not negligible when buying real estate. They can be up to 15 % and expose themselves real estate transfer tax, notary fees and the broker commission together. The largest share falls on the costs for the broker and the real estate transfer tax.
These additional purchase costs are usually not covered by banks. You must therefore finance the additional costs from your own capital. The reason lies in a risk assessment by the banks. In the event of insolvency, the bank would not be able to recover the additional purchase costs through the sale of the property.
The land transfer tax and broker's commission vary locally. Notary fees and expenses for registration in the land register are further items of incidental purchase costs. However, these vary only slightly, as the cost rates of notaries are fixed. In the case of a new building, shooting costs for the land are also added to the purchase price.
If your financial situation changes, a modified repayment allows you to adjust the monthly installment of the loan to the new situation. This is also referred to as Repayment rate change, if the repayment is changed during the term is to be made. The right to change the repayment during the term of the loan must be agreed in the loan agreement. It is common to change the repayment rate between a minimum and maximum repayment rate. Some banks allow the repayment rate to be changed free of charge. Usually, however, there are restrictions on how often you can change the repayment rate during the term of the loan. It is common to find wording that allows you to adjust the repayment rate once a year (e.g., Sparkasse) or twice during the fixed-interest period (e.g., ING) free of charge. Other providers charge an additional fee for changing the repayment during the term. With a framework loan and the Securities Loan on the other hand, the adjustment of the repayment is usually free of charge without limitation.
Home loan comparison tips
- Let us help you choose your dream property time!
- Keep your eyes open! Many municipalities sell building lots at family-friendly prices.
- Cover the ancillary costs of purchasing land or real estate Equity capital!
- keep those debit interest and the repayment in view!
- Plan so that the monthly load at most 40 percent of the available net income!
- Pay attention to reputable loan providers!
- Use the state building subsidies (Baukindergeld, KfW) but don't plan with it!
- Take advantage of fixed interest rates in low-interest years!
- Arrange the possibility of special payments!
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