Buying a property is about a lot of money. For most buyers, this means having to take out a large property loan. High loan amounts, in turn, result in a corresponding interest burden.
Therefore, it is even more important to pay close attention to the loan interest. The lower the interest, the better this is for the household budget.
There are several ways and means to reduce the interest burden of mortgage lending. Today we would like to give you four tips that promise lower interest rates. You may not be able to apply all the tips together, but at least some of them. This alone can result in a nice savings in the long term.
Tip 1 – Comprehensive financing comparison
The most important thing is to look around the market and obtain financing from as many banks, building societies and insurers as possible. The reason is the different conditions. Anyone who cleverly compares to the field of construction will achieve a significant interest rate advantage. For a long time not always attracts the cheapest mortgage lending at the house bank.
Especially direct banks are waiting with attractive terms. In addition, there are promotions and special conditions with other banks. Therefore, there is no way around a comprehensive financing comparison.
Tip 2 – Choose Full Mortgage Loan
Banks like it when builders and homebuyers strive for quick and consistent repayment of the real estate loan. Therefore, the Good Finance Loan often granted a nice interest rate advantage. This interest advantage may amount to several thousand euros in terms of the total duration of the financing.
A Good Finance Loan loan provides for full repayment of the loan amount within the fixed interest period. However, this does not mean having to repay the real estate loan in ten years. Of course, it is possible to choose a longer fixed interest rate.
Tip 3 – Integrate tranches with short interest rate fixation
An alternative to choosing a Good Finance Loan loan is to divide the real estate loan into several tranches. In the end, a tranche is nothing more than a partial loan that has been split off and, for example, is subject to another fixed interest rate.
It is possible to save interest by arranging for a tranche subject to a shorter interest rate commitment. With short fixed interest rates (eg 5 years), there are often nice interest rate advantages.
The decisive factor is that the tranche remains manageable or, ideally, can be repaid in full within the fixed interest rate. Thus, an interest rate risk (a temporary increase in market interest rates) can be completely ruled out.
Tip 4 – Check lending limits
The amount of mortgage interest depends largely on the mortgage lending value. In other words, the relationship between the loan amount and the total cost of the project is more important. The larger the proportionate loan amount, the greater the risk of the bank, resulting in a higher interest rate.
Competent financing advice
Whether it is the design of the loan or a comprehensive interest rate comparison – our consultants will gladly assist you with your mortgage lending. Benefit from our many years of experience and the opportunity to evaluate the loan terms of more than 400 financing partners.
Our advice is free and without obligation, ie you do not take any risks and can always decide for yourself whether and by whom you finance.