Building savings calculator

Building savings contracts in comparison 2023

Building savings contract explained

A building savings contract is a combination of savings plan and real estate loan. For many people, it offers a great opportunity to invest their money at low interest rates. Compare your home savings offers here!

Guidebook Content:

  1. Calculator & comparison: building society contract
  2. What is a building savings contract?
  3. How a building savings contract works

The most important facts about the building savings contract

  • The building savings contract combines savings plan and real estate loan
  • Consists of savings and redemption phase
  • Interest rates are usually somewhat lower than market mortgage rates
  • Building savings contracts are offered by many banks
  • Each building society has its own building savings tariffs
  • Building savings contracts entail acquisition and administration costs

Building savings calculator

What is a building savings contract?

A building savings contract combines two contracts: A savings plan and a real estate loan. It is divided into two phases, the savings phase and the repayment phase. In the savings phase, the interest rate charged for the building savings contract is usually somewhat lower than the market mortgage rate. In addition, there are acquisition and administration costs for each building savings contract.

How a building savings contract works

When a building savings contract is concluded, a building sum is first specified that the saver wishes to invest in a property. The customer now saves a building sum that usually corresponds to 30% to 50% of the fixed building sum. The other percentages are paid out by the building society as a loan. When enough money has been saved, the building savings contract is ready for allocation after a certain period of time.

The savings phase is followed by repayment, which also takes several years. Here you should note that the higher the repayment rate, the lower the interest.

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