Real estate financing: loan types, interest rates, comparison + free calculator

Real estate loan & financing – You want to fulfill your dream of owning your own home, a condominium, a building plot or a commercial property? Then the right choice of real estate loan decides how high the interest burden and thus the total cost of your real estate loan. Even when choosing a real estate loan, you as a potential buyer are faced with many questions and considerations, such as whether you should choose a classic annuity financing or opt for another form of financing. Follow-up financing is also possible in various ways. Ultimately, you are faced with the question of whether you are better off with a long and fixed debit interest rate or with a flexible real estate loan.

Real estate loans: Types of financing

Without comparison, you will always pay too much. Comprehensive planning based on your requirements and the current mortgage rates is a basis for all real estate loans.

The conditions for real estate loans are based on the current interest rate, as well as your credit rating and the amount of repayment, the term and other credit-related details. Once you have decided on a loan type, you should compare different offers and compare different repayment models in the loan calculator. A shortening of the term with a high repayment rate has a positive effect on the conditions of your real estate loan. So that the real estate loan with a long term is still easy to repay, you should plan your available budget specifically and keep in mind that you have other costs in addition to the real estate loan and can also repay in difficult months without financial bottleneck. If you have planned your monthly installment and told us the amount of your equity, we will make the professional comparison for you and show you a real estate loan that is explicitly oriented to your imagination and the financial basis.

For initial financing and follow-up financing, you should keep other criteria in mind in addition to interest rates. A good and solid real estate loan has flexible repayment options in the general conditions and offers you the chance of free unscheduled repayments, or also a change in the instalment amount within the term.

Real Estate Loans: Alternatives & Comparison

When you took out your property financing a few years ago, you tied yourself to a long interest rate security. But in recent years, the debit interest rates for construction loans are noticeably healthy, making your construction financing unnecessarily expensive and unattractive. With a real estate loan under 10 years term, you should show patience and wait until the debit interest commitment expires. With longer fixed interest rates, you have the option after 10 years to cancel the debt with your real estate financier and reschedule the construction loan to a cheaper loan.

Annuity loan

The annuity loan has replaced mortgage financing and is now considered the classic, solid and most frequently chosen form of construction financing. This type of construction financing provides you with several advantages and gives you security, as you pay a continuous amount for a fixed term, which is made up of the repayment and the interest payment. With each repayment, your loan amount decreases, whereby the amount of the actual repayment portion increases and the interest liability to the bank decreases.

Building loan

For your construction financing, first and foremost a construction loan comes into question, which you get with a favorable interest rate. In order to make the right decision, you should compare the debit and effective interest rates and not forget that the general conditions are an important part of the conditions. There are different construction loan forms that offer you different advantages and options. To ensure that your construction financing fits your requirements and your repayment wishes, you should also pay attention to the selection of a construction loan outside of the interest rates and make the comparison based on all contractual points.

Building society contract

In the past, the building savings contract was considered the classic savings investment for anyone who wanted to fulfil the dream of owning their own home. A few years ago, there were higher interest rates for building savings, which made the offer more interesting for potential owners and the savings higher. But even today, despite lower interest rates, the building savings contract has not lost its appeal and forms a stable foundation if you want to build a house, finance a condominium or purchase an existing property. Building savings are counted as equity capital and thus reduce the amount of money that you should integrate into a real estate financing without building savings. If you are building savings, you only need to worry about the ancillary purchase costs when it comes to the equity capital, while the other part of the equity capital is offset against the building savings sum. Construction money tips are therefore worth a lot!

Real Estate Loan

If you want to buy and finance a house or an apartment, a real estate loan is a suitable decision. In principle, construction financing and a real estate loan do not differ fundamentally. But when you buy an existing property, you usually apply for a real estate loan and not a construction loan. The real estate loan must be well planned and tailored to your needs, as well as your idea on the condition. Flexibility in the contract is an advantage that you should secure over a longer period of the term. Real estate interest rates are currently at an amazingly low level. Nevertheless, a real estate loan can increase in price by several thousand euros if planned incorrectly, since it is a high investment sum with a long term.

KfW loan

KfW loans are an important and cost-saving component of a perfectly planned construction financing. As a private property buyer, you can benefit from these subsidised loan funds and opt for an optimal supplementary component of your construction financing. An exclusive promotion via a KfW loan is excluded, as the Kreditanstalt für Wiederaufbau only finances certain building blocks. Would you like to renovate your home to make it more energy-efficient or age-appropriate? Find your suitable KfW loan that will noticeably reduce your overall interest rate on the construction or real estate loan. Financing your own home in two ways is a thoroughly practical and favourable option, as you always benefit from a KfW loan and choose the best interest rate within your construction financing.

Offers, repayment and financing without equity capital

More about offers, repayment and financing without equity.

Follow-up financing

Will the fixed interest rate for your current real estate loan end soon? Then don’t lose any time when it comes to finding the best follow-up financing.

Financing without equity capital

Financing without equity is generally possible and is realized through full financing. With our market experience and expertise, we at Lukinski are your contact if you are considering buying a house with full financing without equity. We would be happy to advise you individually and personally on all the advantages and risks that need to be considered in the case of full financing without equity.

  • Financing without equity capital

Financing offer

A tailor-made financing for the purchase of real estate is based on an offer that is personally determined for you.

Financing house

Under the term home financing are various loans with which you can finance your own property. Inform yourself with us of Lukinski – your house sale, with which loan you buy safely and cheaply. We will not only find a favorable construction or real estate loan for you, but also advise you in detail about which type of financing offers you fundamental advantages and maximum flexibility in the repayment period.

Financing apartment

The apartment loan differs from the classic real estate loan primarily in that you do not finance a whole house, but the respective housing unit. In order to find favourable conditions and the best financing strategy for you, you should compare different housing financings and choose experts in the field of brokerage.

  • Financing apartment

Financing comparison

It is not easy to find the right construction or real estate financing without a comparison. The interest rates are cheaper than ever, but the long term of the real estate loan results in significant differences between the individual financing options. Use the construction financing calculator and get an initial overview of your options and the individual interest rate based on your entries.

  • Financing comparison

Interim financing

There can be various reasons for interim financing. You already own a property, but would like to move for professional or private reasons and cannot sell your house so quickly? Do you not want to forego the use of equity and secure a favorable real estate financing this way? Then the additional interim financing is the solution with which you close a gap between the house financing and the soon available equity.

Interest & Building rate

Building interest

Construction interest rates have been stably low for several years. But what trend will construction interest rates follow and is it worth fixing a long fixed-interest period now and protecting yourself against a possible rise in interest rates?

Or are construction interest rates continuing to fall and you are financing too expensively if you opt now for a fixed interest rate with a term of 10 or even 20 years? If you understand the interest rate chart and use the interest rate barometer correctly, you will get a transparent overview of the current and future construction interest rate development.

Mortgage rates

The term mortgage interest is now replaced by the term construction interest. The construction interest rates, or mortgage interest rates decide whether a construction financing is cheap or expensive. Due to the current historically low construction interest rates, you can finance your property very favorably and secure an advantage that has a lasting effect on the total cost of financing.

Calculator: Real estate and construction financing

Calculators are necessary in relation to construction financing to accurately determine the cost of buying or renovating a property. A calculator is also used to determine the cost of the loan. The credit costs are composed of the interest and the repayment portion for the current loan amount. The interest plays an important role. Since the term of a real estate loan is usually ten years, the interest payment is spread over a long period. If an offer from a bank is only half a percentage point cheaper in their interest, you can already save several hundred euros a year. This is also due to the high loan amounts, which for most construction financing a six-digit amount. Before taking out a loan, an individual consultation is important. Often the construction financing consists of several pillars and not just a single loan. A building savings contract, equity capital and development loans come before taking out the classic bank loan. The reason for this is that these financings are significantly cheaper than the bank loan in terms of their costs. The calculator helps you to divide the financing into different elements and thus determine the costs with certainty.

More calculators for owners

Read more about the individual topics here:

  • Offer comparison calculator
  • Budget calculator
  • Budget calculator
  • Incidental purchase cost calculator
  • Rent calculator
  • Repayment calculator
  • Interest calculator

How can you recognize a good construction financing?

We would like to point out that the lowest interest rates alone do not provide any information about a really good building loan that fits your requirements. Only if the entire conditions fit your requirements, the flexibility of the framework and the repayment period based on the installment amount you have chosen, you will choose the best construction loan for you.