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Amortisation schedules? APR? Escrow? The field of real estate financing is large and frequently confusing. Our experts will provide you with competent support, explain technical terms and respond specifically to your individual wishes. And all this from a single source; we save you unnecessary work or mountains of files and accompany you step by step to your perfect financing option.
It is often said: if you can afford to rent, you can afford to buy. In addition, buying a property promises numerous advantages, such as protection against rising rents or eviction, free scope for design within your own four walls, value appreciation in popular residential areas and financial security in old age. In addition, a mortgage is often as high as the rent - with the decisive difference that you are saving for yourself, not for someone else. Buying real estate also pays off for investors, since already-rented apartments are among the most worthwhile capital investments on the market. Especially in Berlin, you can expect relatively low entry prices - compared to unlet apartments - and at the same time benefit from the city's continuing boom and considerable potential for returns.
The annuity loan is Germany's most popular method of real estate financing. The loan rate is made up of the interest and the principal repayment amount together. The interest rate is fixed for a period of 1 to 30 years, depending on your individual needs. While the interest portion decreases over the years, the principal repayment portion increases, since with each payment the residual debt decreases, but the interest is always proportionally based on this and the monthly interest rates decrease accordingly. At the end of the fixed interest period, the remaining debt is repaid, if necessary, through refinancing.
With an amortising loan, a monthly repayment instalment is first calculated by dividing the respective loan amount by the number of months of maturity. This value is then added to the respective interest portion, which decreases proportionally over time.
The purchase of real estate continues to pay off, as interest rates are lower than ever, often compensating for higher purchase prices. A full repayment loan, with a fixed interest rate over the entire term, therefore appears particularly attractive. At the end of the term, there is no residual debt, no need for re-mortgaging and no interest rate risk.
With a building society mortgage, the mortgage is linked to a savings account. You save a contractually fixed minimum savings amount then, after a minimum term, you can either terminate the savings plan and have it paid out, or accept a loan offer that you can use for residential purposes.
There are also variable mortgages, such as combination or flex loans, which combine different forms of mortgage. Our financial consultants will be happy to answer your questions here and put together offers tailored to your needs. Still unsure which financing offer suits you best? Then take our test and find out.