Properly plan the financing of the house


The dream of owning a home is not always easy to realize in Germany. But in times of low interest rates, more and more people in this country can afford a nice little house and make the long-cherished dream a reality. Whether a small terraced house on the edge of town or a stately villa in the countryside – the demands of Germans are as varied as their financial possibilities.

On house loan we would like to give therefore not only assistance to the financing, but at the same time also show, how and where one can come to a favorable credit. At the same time, however, it is important to have a good overview of one's own finances and to place the financing of the house on a solid foundation. The risk of failure is omnipresent, but can be reduced by appropriate and realistic planning.

Tips for home financing

To set up a suitable home financing, some preparations are necessary. After all, buying a house is the biggest financial project of life for most people and should therefore be planned carefully. A few general tips can help make preparations for home financing. We have compiled the central three tips for you:

How much equity for house purchase?

The higher the equity ratio is, the lower the required loan amount will be. Many builders are therefore wondering how much equity is useful for buying a house. An equity ratio of 20 to 30 percent is often advised. Due to the low interest rates a house financing can be realized however also quite with smaller portions. Above all, the repayment rate is decisive.

Bear in mind that the money you have in your savings account is hardly earning any interest at present. Conversely, you pay for the borrowed money despite the low interest significantly more than what you would get. Nevertheless, not all the assets should be used for the home loan. A cushion of a few thousand euros you will need for possible car repairs or a defective household appliance.

Loan comparison through home loan calculator

For loan amounts of 200.000 euros and more, supposedly small differences in interest rates over the entire term become clearly noticeable. The comparison principle is therefore one of the cornerstones of suitable home financing. Be sure to make a comparison and use home loan calculators to weigh different offers against each other.

The individual situation should always be the focus. Look not only at the interest rate, but also at the general conditions. To what extent are unscheduled repayments possible? How long is the fixed interest rate? These and other questions should be kept in mind when using a home loan calculator to look for the best financing offer.

Pay attention to repayment and unscheduled repayments

The amount of the agreed repayment should be chosen carefully. A repayment of only one percent is considered a "minimum". This means: the rate per year is as high as the interest on the loan plus 1 percent for the financing amount. As more and more money is repaid year by year, the amount to be repaid decreases bit by bit. The advantage: the monthly burden is relatively low. The disadvantage: the loan term stretches out and may well be 40 years. More suitable is a higher repayment of z.B. two percent. In this way, the total interest burden is significantly lower and the term is shortened.

Furthermore, the flexibility of the loan plays a central role. The possibility of unscheduled repayments helps to reduce the loan term and thus the cost. In this way, the monthly payments can be planned conservatively, so that you can make an unscheduled repayment in the event of a surplus. If one receives, for example, vacation or Christmas bonuses, this money can be used immediately for a special repayment.

Use home loan calculator for planning

An online home loan calculator provides the basis for home financing. You can compare various loan providers and their conditions on the basis of individual default settings. You define the general conditions – such as z.B. Repayment, term and loan amount – and the online home loan calculator sifts through the offers of various reputable providers. You are then presented with the results at a glance and can contact the providers you consider to be good.

Little by little we deal with the housing situation in German cities. Especially the house prices and their development play a major role for us. Therefore, the following list is always expanding: