Life has surprises in store – real estate financing should also be prepared for this: important basic rules.
The dream house or the perfect apartment has been found and the time to buy is good thanks to even lower interest rates. If you buy your dream property now and tie it to a loan for years, you shouldn’t act too quickly – but adapt everything to the circumstances of life: with financing that offers enough flexibility. Due to a lot can change over around 20 years: First a double-earner couple, then perhaps maternity leave and then part-time. Or: a surprising inheritance or career leaps that are associated with salary increases. But periods of illness or even an occupational disability are possible, which should be specifically covered.
Important basic rules for flexible financing:
- Set the initial repayment at least two per cent. When financing owner-occupied real estate, loans with annuity repayment are usually suitable, that means: The monthly annuity instalment to be paid consists of interest and a repayment component, which remains constant during the fixed interest period. The repayment portion increases during the financing period as the interest burden falls. The higher the borrowing rate, the stronger this effect. To ensure repayment of the loan in a sustainable period, at least two per cent repayment should be planned because of the current low-interest rate; Many banks are now even assuming this proportion.
- Agree on a repayment rate change: This way, changes in the household budget, such as parental leave or part-time work, can be cushioned. Example: Lenders often allow up to three repayment rate changes during the fixed interest period, mostly between the percentage of one and five of the loan amount.
- Agree on outstanding repayments. One-off payments accelerate debt relief: the reduced loan amount reduces the interest portion of the repayment instalment – and the repayment portion increases. Free outstanding repayments of five to ten per cent of the loan amount per year are common, often limited to three outstanding repayments during the fixed interest period. Suitable for bonus payments, inheritance or a more enormous amount of freely available money.
Real estate purchase still in planning?
If you want to take your time with your own home, you can secure the current interest rate with a home loan and savings contract as a basis for later financing. Home loan and savings contracts generally allow many design options up to the point at which the loan is drawn down. In the building society loan phase, there are usually unlimited unique repayment options. State funding can also be used. The details are particularly important when it comes to lifelong financing like homeownership.