Real Estate Loans: Bank, Loan, Equity, Interest, Comparison + Tips

Real Estate Loan – If you want to buy a house or apartment and finance it, a real estate loan is a suitable decision. In principle, a construction financing and a real estate credit do not differ fundamentally. But if you buy an existing property, you usually apply for a real estate and not a construction loan. The real estate loan must be well planned and tailored to your needs, as well as your idea of the conditions. Flexibility in the contract is an advantage that you should secure over a longer period of the term.

Tailor-Made Real Estate Loans Save you Interest Costs

The real estate interest rates are currently at an astonishingly favorable level. Nevertheless, a real estate loan can become a few thousand euros more expensive if planned incorrectly, as it is a high investment sum with a long term.

How do you finance at the most favorable rate?

You can recognize a good real estate loan by the fact that it is tailored to your needs in terms of flexibility and interest rate.

Frequently asked questions are:

  • What are the requirements for a real estate loan?
  • How much real estate credit can I afford?
  • Which bank is the best for a loan?
  • How much equity should I have when buying a house?

Optimal offer needs comparison

An optimal offer requires comparisons in which you compare interest rates and overall conditions using various repayment examples. You can influence the real estate loan interest rates in various ways.

First and foremost, your personal interest rate is based on a positive credit rating and the invested equity capital. You benefit from an interest rate reduction by increasing the repayment installments per month and shortening the term. Through a wide search and the resulting comparison possibilities you can finance much cheaper than if you concentrate exclusively on one bank and choose the first offer for a real estate loan binding.

Real estate credit guidelines

In 2016, the real estate credit guidelines were tightened, which means that financing refusals are now more frequent than before the tightening. You can also avoid this point on the free financial market, because an independent real estate credit broker cooperates with numerous banks and will always find a suitable and low-interest financing option for you.

Due to the immense loan amount, even the smallest differences in interest rates are a reason for comparison. They recognize fast that the saving in comparison of the most favorable and most expensive real estate financing can amount to a five-digit sum and be thus considerable.

What Influences the Conditions of a Real Estate Loan ?

Apart from external factors such as the economy, which has a significant influence on the mortgage interest rate, your personal circumstances influence the mortgage loan. With the best credit rating and a high equity investment, you finance at the best price. Secure advantageous conditions and compare not only the borrowing rate and effective interest rate, but also the contractual conditions of several real estate loans.

Credit request and influence on creditworthiness

Since a targeted credit inquiry influences your creditworthiness and is visible to third parties, we advise you to ask for conditions as a basis for comparison.

Tip! Condition requests as a basis for comparison

We would be happy to take on your order and ask for conditions from various financing partners for your property. In order to receive a specific offer and to provide you with the appropriate conditions, we will base it on the exposé of your desired property. In our portfolio you will find attractive properties that you can easily finance with a real estate loan, which you can also apply for through experts.

In order to provide you with an offer of conditions and to show you comparison options, you need the important information about your financial background, your creditworthiness and the property as well as the monthly repayment rate you are aiming for.

Creditworthiness is the best proof of creditworthiness with a banker:

Compare Offers: Advantages of the Free Financial Market

What criteria should you use to compare real estate loans? First and foremost, the borrowing rate and the effective interest rate play an important role.

Terms and special repayment options

A real estate loan is favourable if it fully matches your repayment expectations and allows you flexibility within the term. Even if real estate loans with an unscheduled repayment option have higher interest rates, this focus can be worthwhile and ensure that you repay the financing in a shorter term and do not have to pay additional fees for unscheduled repayments.

Due to the variety of real estate loans on the free financial market, we can find an offer for each of our customers that fits their personal requirements without compromise and offers the most favorable overall conditions.

Changes in the repayment amount

In comparison you should use the possibility to recognize the variance by changes in the redemption amount. Even a small increase in monthly repayments with the accompanying shortening of the term can reduce your interest rate by a large amount and make the real estate loan noticeably cheaper.

There is no real estate loan that is equally suitable for all borrowers. Depending on your equity, the desired term and your credit rating, the conditions vary. You should also bear in mind that each financing partner pays a different interest rate and includes various factors in the contractual agreements.

Real Estate Loan: Possibilities & Alternatives

Would you like to fulfill your dream of your own home, a condominium, a building plot or a commercial property? Then the right choice of real estate loan will determine how high the interest burden and thus the total cost of your real estate loan will be. Already when choosing a real estate loan, you as a potential buyer are faced with many questions and considerations, for example, 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 advised with a long and fixed debit interest period or with a flexible real estate loan.