Compare as many offers as possible – Tip 1

If you want to take out a loan for the construction or purchase of a property, it is worth comparing offers from different banks and credit institutions. There are various interest rate calculators on the Internet that allow you to compare the interest rates of different providers. You can also contact the banks and credit institutions directly to receive offers.

It is important to compare as many offers as possible to find the best interest rate for you. The more offers you compare, the greater the chance that you will find an attractive interest rate. Also compare the conditions of the different providers, such as the fixed interest period, the unscheduled repayment options and the repayment conditions. That way you can choose the best offer for you.

Comparison tip summarized:

• Compare as many offers as possible from different banks and credit institutions
• Use an interest rate calculator on the Internet or ask the provider directly.
• The more offers you compare, the greater the chance that you will find an attractive interest rate

Also compare the terms and conditions of the various offers (more on this in a moment), such as the fixed-interest period, the unscheduled repayment options and the repayment terms.

Construction financing: provider comparison

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• Construction financing in comparison

Consider the fixed interest period – Tip 2

The fixed interest period indicates how long the construction interest rate remains guaranteed. For example, if you choose a fixed-interest period of 10 years, the construction interest rate remains constant for the duration of 10 years. After the fixed interest period has expired, the interest rate may change and adjust to the current market interest rate.

There are advantages and disadvantages to different fixed-interest periods. A longer fixed-interest period can be somewhat more expensive, but it also offers more planning security. You know exactly how high the monthly installments will be for the duration of the fixed-interest period and can plan your finances accordingly. A shorter fixed-interest period, on the other hand, can be more favorable, but is also associated with a higher risk, as the interest rate can rise after the fixed-interest period has expired.

When deciding on a fixed-interest period, you should therefore consider whether you are more interested in planning security or in the lowest possible interest rates. You should also compare the interest rates for different fixed-interest periods with different providers to find the best offer for you.

Interest rate lockup summarized:

• Fixed interest period indicates how long the construction interest rate remains guaranteed
• Longer fixed-interest period offers more planning security, but is also somewhat more expensive
• Shorter fixed-interest period is more favorable, but also entails the risk that the interest rate may rise after the fixed-interest period has expired
• When selecting the fixed-interest period, consider whether you are more interested in planning security or in the lowest possible interest rates.

Compare different forms of interest – Tip 3

There are different forms of interest that you can choose when financing your construction. The most common forms of interest are:

1. Fixed interest
2. Variable interest
3. Combined interest

Fixed interest

With fixed interest rates, the construction interest rate remains constant throughout the term of the loan. This provides planning security, as you know exactly how high the monthly installments will be. However, fixed interest rates are usually somewhat more expensive than variable interest rates.

Variable interest

With variable interest rates, the construction interest rate can change during the term of the loan. It is adjusted to the current market interest rate. Variable interest rates can be more favorable than fixed interest rates, but also offer less planning security, since you do not know exactly how high the monthly installments will be.

Combined interest

Combined interest rates are a combination of fixed and variable interest rates. One part of the construction interest rate remains constant throughout the term of the loan and the other part is adjusted to the current market interest rate.

Each form of interest has its advantages and disadvantages. Compare the different options to find the best form of interest for you. Also consider your personal preferences and your financial possibilities.

Consider the unscheduled repayment options – Tip 4

Unscheduled repayments make it possible to repay the loan early and thus save interest. There are various options for unscheduled repayments, such as:

1. One-time unscheduled repayment
2. Regular unscheduled repayments

One-time unscheduled repayment

A one-time unscheduled repayment allows you to repay the loan once in full or in part. This can be useful, for example, if you suddenly have a larger sum of money at your disposal, for example due to an inheritance or the sale of a property.

Regular unscheduled repayments

It is also possible to make regular unscheduled repayments, for example monthly or annually. In this way, you can repay the loan faster and thus save interest.

When selecting a mortgage, consider the unscheduled repayment options offered by the various providers. Compare whether and how much unscheduled repayments are possible and whether there are any fees for unscheduled repayments.

Use comparison portals – Tip 5

There are various comparison portals on the Internet that allow you to compare construction interest rates from different providers. These portals usually also offer various filter functions that you can use to narrow down the search according to your preferences, for example, by fixed-interest period, interest rate or repayment conditions.

The comparison portals can be a good way to quickly and easily get an overview of the various construction interest rate offers. However, you should note that the comparison portals usually do not take into account all providers and conditions and that the offers may not always be up to date. It is therefore advisable to check the offers directly with the banks and credit institutions.

Exactly right! Click here for the provider comparison

Check current conditions online, as always 24/7 here:

• Construction financing in comparison

Use the offers of intermediaries – Tip 6

Intermediaries are specialized service providers who can help you find a favorable construction financing. They compare the offers of different banks and credit institutions and advise you on the best financing for you. Some brokers also offer exclusive deals that can only be obtained through them.

The services of intermediaries are usually subject to a fee. However, they can save you a lot of time and effort in the search for a favorable construction financing and also arrange better conditions for you. It is therefore worth considering the offers of intermediaries. However, also find out about the conditions and fees of the intermediaries to make sure that they are actually advantageous for you.

Consider other financing options – Tip 7

In addition to banks and credit institutions, there are other ways to raise money for the construction or purchase of a property. These include, for example:

1. Building savings
2. Building society loan
3. Promotional loan
4. Personal loans

Building savings

Building savings is a form of long-term investment in which you deposit money regularly and receive interest and tax benefits in return. The money saved can be used for the construction or purchase of a property if required.

Building society loan

A home savings loan is a loan granted on the basis of your home savings contract. You do not have to provide any collateral and can usually benefit from favorable interest rates.

Promotional loan

There are also various development loans offered specifically to builders or homebuyers. These loans are usually more favorable than conventional bank loans and are provided by the federal government, states or municipalities. However, there are usually certain requirements that must be met in order to receive a development loan.

Personal loans

It is also possible to take out a loan from friends or relatives. This usually brings you favorable and sometimes flexible conditions, for example, if you can not pay an installment on time.

Negotiate the construction rate – Tip 8

It is not uncommon for banks and credit institutions to have a certain amount of leeway when it comes to construction interest rates. It is therefore worth negotiating the construction interest rate and asking for a reduction.

There are several factors that play a role for banks in evaluating creditworthiness that can affect the construction rate. These include, for example:

1. Credit rating (creditworthiness)
2. Amount of the credit
3. Fixed-interest period
4. Type of property

Credit rating (creditworthiness)

Your credit rating indicates how likely it is that you will be able to repay the loan. As a rule, the higher your credit rating, the lower the interest rate.

Amount of the credit

The amount of the loan can also influence the construction interest rate. As a rule, the larger the loan, the higher the construction interest rate.

Fixed interest period (mentioned above)

As already mentioned, the fixed interest period indicates how long the construction interest rate remains guaranteed. A longer fixed-interest period is usually more expensive than a shorter one.

Type of property

The type of property can also influence the construction interest rate. For example, construction interest rates for single-family homes are usually more favorable than for multifamily homes or commercial premises.

Take these factors into account when negotiating the construction interest rate and try to present your arguments well. It is also worthwhile to obtain offers from several banks and credit institutions and compare them with each other. This way you can find out who is willing to reduce the construction interest rate.

Start construction planning?

Here you can find good conditions in comparison:

• Construction financing check

Find individual and beautiful dream homes

Dream homes offer plenty of space for individual needs. They are flooded with light, the rooms are large and pleasantly cut. The exterior architecture is worth seeing. Dream houses stand out from the classic building by an appealing exterior design. A large balcony, a terrace on the roof or a romantic bay window are built into dream houses. The view from the balcony or terrace goes into the green, to a lake or to the sea. The interior of a dream house can be described as upscale. High-quality furniture in the kitchen, expensive sanitary ceramics and hard-wearing, visually appealing floors are just as much a part of it as an advantageous cut of the individual rooms. The kitchen is equipped with a cooking island and a spacious dining area. A separate dining room is also happily furnished. The large living room has high windows and direct access to the terrace or garden.

Energy efficiency of the dream houses

Dream houses are characterised by a modern energy-saving heating system. Renewable energies and independence from a regional energy supplier are popular. In the meantime, technology has advanced so far that self-sufficiency is used with a powerful solar system in combination with the possibility of storing energy. In this way, the homeowner produces his own electricity and only needs to use the services of an energy supplier for a few weeks or months of the year. The insulation of the exterior walls, windows and doors not only provides very good sound insulation, but also a high saving in the consumption of heating energy. The houses are therefore particularly environmentally friendly. Heat pumps, which are operated with the self-generated electricity, do not require fuels such as gas or oil. These resources are no longer needed, which is another positive effect.

Safety issues

Dream houses are more expensive in their purchase price than homes with classic equipment. This sometimes attracts people with criminal energy. To prevent burglary, many dream homes are equipped with an alarm system and other security systems such as an electronic gate and video surveillance. The modern smart home system makes it possible to network different components and conveniently control them with your smartphone. In this way, you can also switch on your heating, prepare the coffee machine or close the blinds on hot days while on the move. You also have a view of your house at all times by calling up the images from the video camera while on the move. You can find dream homes in the city, in outlying areas and in rural areas. However, buying such a house always involves a larger investment.

More information about buying real estate

What else you need to consider when buying a property and what tips can help you finance the property of your dreams.

Planning and financing: costs, credits, tips

In most cases, the purchase of a property is accompanied by financing. Very few property buyers are in a position to pay cash for their property. Financing for a property usually extends over a period of ten to 30 years. Careful planning is therefore very important. A stable income is one of the essential requirements for secure financing. The income should be secured for the financing period. You must take into account changes in life planning as well as the possibility of loss of earnings due to illness or unemployment. Young couples may want to have children, which also affects income.

• Click here for tips on planning and financing.

What types of houses are there? Real estate guide

You just need a little more space? However, the choices of real estate these days are very large. Especially when buying a property, there are many factors to consider and choosing the right type of house is essential. What house types there are, and what makes each of them, we would like to tell you in this article. Learn about the characteristics and special features of each type of house, and let us show you the advantages and disadvantages. With the help of this guide, it should be easier for you to choose the property that is perfect for you. Get an overview and learn about the world of bungalows, terraced houses and villas!

• Click here for the house types.