Interim financing – Often builders apply for a loan for the construction or purchase of a property. If this is the case, interim financing becomes relevant, especially in the case of a building society loan. Here, the borrower has not yet reached the allotment maturity of his loan, but would still like to start with the construction or purchase of a property. In this case, the borrower takes an interim loan, which is considered as an advance for his loan. The credit balance on the building savings contract serves as collateral for the interim loan and is granted by the building savings banks in most cases.
Interim financing at a glance: For early financing of a property
- If a loan is not yet ready for allocation, interim financing may be relevant.
- In this case, the borrower takes out an interim loan, which is to be understood as an advance on his loan.
- The credit balance on the building savings contract is considered as collateral for the loan
- Is granted in most cases by the building societies
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