Building savings contract – The building savings contract is a way of financing real estate. This contract is invested with the building society and obliges the saver to save a fixed amount within a certain period of time. The agreed building society tariff determines, among other things, the interest rates, the savings and redemption period and also the closing fee. As soon as the contractually agreed amount has been saved, the saver is entitled to a loan for the remainder of the sum. A bauspar tariff usually runs between 18 and 20 years, of which 7 years are the savings period alone.
Building savings contract at a glance: Savings contract for real estate financing
- Possibility of financing real estate
- A fixed amount must be saved within a certain period of time
- Determines interest rates, any minimum contract period, minimum balance at allotment, etc.
- Term usually 18 to 20 years, 7 of which savings period
- After saving, the saver has the right to a loan for the rest of the sum.
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