Question 1

What is real estate financing?

Accepted Answer

Real estate financing is a loan that private individuals take out to finance the purchase or construction of a property. It serves to cover the part of the costs for the home or an investment that is not covered by equity.

Question 2

How do I submit a financing application?

Accepted Answer

You can prepare your financing application completely digitally using the financing configurator.

Question 3

How high should my equity be for real estate financing?

Accepted Answer

A common guideline is to contribute at least 20% of the purchase price or construction costs as equity. The more equity you have, the cheaper the terms of your financing can be. Ideally, the additional purchase costs should always be borne from your equity.

Question 4

How do I find the best interest rate for my real estate financing?

Accepted Answer

To find the best interest rate, you should compare offers from different banks. Our financing configurator can help you identify the best conditions.

Question 5

How long should the term of my real estate financing be?

Accepted Answer

The term should be tailored to your financial possibilities and goals. Shorter terms mean higher monthly installments, but lower overall costs. Longer terms lead to lower monthly installments, but higher overall costs.

Question 6

What is the difference between fixed interest rates and term in real estate financing?

Accepted Answer

The fixed interest rate for real estate financing determines how long the agreed interest rate for your loan is fixed. During this time, the interest rate does not change, regardless of market fluctuations. The term, on the other hand, indicates how long you need in total to do so Loan to be repaid in full.

Question 7

Which additional costs do I have to take into account when financing real estate?

Accepted Answer

Additional costs can include notary and land registry costs, real estate transfer tax and broker's commission. These should be included in your overall cost calculation. The amount essentially depends on the construction or purchase price costs.

Question 8

What is the difference between effective interest rate and debit interest rate?

Accepted Answer

In addition to the debit interest rate, the effective interest rate also includes all additional costs such as fees and commissions. The debit interest rate is the pure interest rate that you pay for the loan. The effective interest rate therefore indicates the actual total costs of financing.

Question 9

Can I take advantage of government subsidies for my real estate financing?

Accepted Answer

Yes, in Germany there are various government funding programs such as the KfW funding that can support the construction or purchase of a property. You should check these and use them if necessary.

Question 10

How does repayment work for real estate financing?

Accepted Answer

When you repay, you regularly repay part of the loan amount. The amount of the repayment installments can vary, but should be chosen so that the loan is repaid in full within the term. The lowest initial repayment rate is currently 1% (as of : 2023).

Question 11

Can I make special repayments when financing real estate?

Accepted Answer

Yes, many credit institutions allow free special repayments. These are additional payments that you can make in addition to the regular installments in order to pay off your loan more quickly. Often 5% of the initial loan amount per year is included in a standardized manner.

Question 12

Which insurance policies are important for real estate financing?

Accepted Answer

This can be very individual. In principle, personal insurance cover should be adapted to new phases of life. In connection with real estate financing, it is particularly advisable to seek advice on risk protection with term life insurance and occupational disability insurance. It also applies to insure the property yourself with residential building insurance, provided it is not part ownership.

Question 13

Can I redeem my real estate financing early?

Accepted Answer

This cannot be assessed across the board. Early redemption is generally possible, but may be associated with an early repayment penalty. A loan can always be redeemed early free of charge with a 6-month notice period if 10 Years will expire. If there is an intention to sell, a change of debtor can sometimes be a favorable alternative to get out of the loan agreement.

Question 14

Is the financing configurator more reliable than a building financing calculator?

Accepted Answer

Yes, the financing configurator is a state-of-the-art and reliable end-customer web application and, in addition to configuring every conceivable financing project, also enables the independent real-time determination and application of valid interest conditions for all feasible financing offers. Most construction financing calculators only provide a shortened overview Calculation for very limited projects.

Real estate financing

Real estate financing – with digital solutions for your financing offer

Get started with digital real estate financing in just 3 minutes and compare and apply for the best conditions in the offer dashboard

Perfectly coordinate your individual financing project in the financing configurator

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Results list with sorting function in the offer dashboard:

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Projects that can be configured:

Feasibility and interest rates are determined by individual parameters

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real estate financing

Web tool for real-time determination of the top interest rates for real estate financing

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Real estate financing can be customized, yet digitally tailored to your project