Favorable follow-up financing to the real estate loan?

You can choose between three different financing options for follow-up financing. Experts will check the best conditions for you and advise you in detail on the forward loan, the prolongation and the rescheduling of the real estate loan. Which follow-up financing is suitable for you depends on various factors and requires optimal planning.

The most frequent questions in consultations

• How high are the interest rates for follow-up financing?
• How does the follow-up financing work?
• What does follow-up financing cost?
• When can you do a follow-on financing?

Roughly speaking, the following applies to follow-up financing (rule of thumb)

If the new interest rate is at least 0.2% below the previous one, the debt restructuring is worthwhile.

What do I have to consider?

• Early start of planning
• Save equity capital
• Check offers thoroughly
• Negotiate with your bank advisor
• Tip. Not only interest rates, also pay attention to the ancillary conditions
• Set monthly installments
• Optimize them so that you make all repayments safely, regularly
• If possible, make additional special repayments
• Tip. Also use your special termination option

After 10 years, you can reschedule and make use of your special termination right, more on this in a moment, after the tips the next bank appointment.

Real estate financing: How the bank thinks – Video Tip

The following two videos give good insights into the mindset of banks with “Internals on Lending” and “How to Prepare for a Bank Appointment”.

Video: Internals on lending

For more information, check out this video by Alex Fischer:

Video: How to prepare for the bank appointment

Follow-up financing before expiry of the fixed borrowing rate

Would you like to refinance earlier due to an older and high-interest property financing and not wait until the fixed interest rate expires?

After 10 years, you can reschedule and make use of your special termination right without your desire for a cheaper loan for your property being accompanied by an early repayment penalty for the bank. In terms of follow-up financing, low interest rates are the first choice of our customers. Keep in mind that a low interest rate alone is not enough if the terms and conditions elsewhere do not suit you. We will find your personal follow-up financing and make you an offer that suits you in its entirety.

Compare the advantages of individual follow-up financing

Identifying the best terms on an offer requires a lot of know-how and core expertise in evaluating follow-up loans. Your lender will take this task off your hands and recommend a loan that matches your desire for follow-up financing in terms of its orientation and contractual basis.

Each lender’s condition offer is unique and tailored to your needs.

There is no blanket, for every property owner equally suitable follow-up financing with primary advantage. First and foremost, it depends on the right choice of loan and on the conditions and terms of flexibility that suit you.

Calculator: rate, repayment rate, residual debt

What will your planned construction financing cost you? But much more important in everyday life, how high will your monthly burden be and what happens if the repayment rate changes later? How high will the remaining debt be at the end of the fixed interest rate? Many questions, this rate calculator gives you all the important answers to rate, repayment rate and residual debt.

• Rate calculator

Here you come back to the main page: Calculator

Repayment calculator: credit, loan, installments

In most cases, construction financing includes a loan. This can be a bank loan, a subsidised loan or a low-interest loan from a building society. Regardless of the credit institution with which you have applied for financing and the interest rate you pay, the loan instalment consists of two elements. Interest and repayment are combined into one amount. The interest payment is retained by the bank, while the repayment is credited to your loan account. You can use a repayment calculator to determine the portion of the installments that will reduce your debt. Since the loan rate usually remains constant over the entire financing period, the ratio of interest to repayment shifts each month. The reason for this is that the interest is always recalculated based on the outstanding loan amount.

Change in redemption

Since the loan amount decreases with each repayment, the repayment grows continuously compared to the interest payments. This means that at the beginning of your financing you have a high interest burden and a low repayment. As you keep servicing the same loan payments, this ratio shifts. Eventually, the ratio has reversed and you are paying a high amortization with a low interest rate. When you take out a real estate loan, the interest and repayment are already calculated for the entire term. You can see in your loan agreement what amount you are actually paying off each month. With a repayment calculator you can determine this amount exactly.

Use repayment calculator effectively

The repayment calculator determines the amount by which you actually pay off your real estate debts each month. The interest payments are not taken into account. You can use the repayment calculator in different ways. If you have already taken out a real estate loan, you can determine which repayment rate applies to your current payments. However, the repayment calculator is also a very good tool when choosing a construction financing, with which you can make an effective planning.

With a construction loan, the bank sets the interest rate. You can only influence this by choosing a cheaper financing. The situation is different when it comes to repayment. You determine the repayment rate. At the beginning, the repayment rate is one percent due to the high interest burden after taking out a new real estate loan. It can increase dynamically or be fixed. With the repayment calculator, you can determine which repayment rate can be realized based on your individual financial possibilities. In principle, you pay off the loan faster with a higher repayment rate. However, you must be able to afford the costs. In the repayment calculator, you have the option of trying out different calculations to determine the ideal financing for your individual needs.

Calculator at a glance

Calculator – Exact planning of the construction financing

Calculators are necessary in relation to construction financing in order to accurately determine the cost of purchasing 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.

• . Learn more about the calculator.

Interest calculator – Construction financing

The interest rates are a very large item in a construction financing. It is recommended that you compare the various offers and conditions well in advance. In this way, you will find out which construction financing is particularly favorable. Since the interest is a very large part of the monthly loan payment, especially in the first years of real estate financing, it is important that you try to save costs.

• Learn more about the interest calculator.

Budget Calculator – Equity & Income

Before the purchase of a house, a comprehensive renovation or a new building can be planned, it is very important to determine the available budget. Construction financing is planned over a period of many years. Financing between ten and 25 years is possible. It is important that the financing is planned from the beginning on a secure foundation. The basis for the budget that is available to you for the conclusion of a construction financing is your income.

• Learn more about the budget calculator.

Offer comparison calculator – advice & options

The offer comparison calculator is an important tool when it comes to choosing a partner for taking out construction financing. Many builders are dependent on taking out a classic loan at a bank or savings bank, because the funds from the equity, a building savings contract and a subsidized loan are not enough. Although the comparison possibilities of the indication by the Internet are very simple and transparent, many owners trust only in the offer of their house bank.

• Learn more about the quote comparison calculator.