Guide to mortgage lending and home loan savings – loan search
Construction loan was always and is again a big issue today, especially since here often much better interest rates on saved assets are to get than it is the case with other forms of investment. In this guide, we clarify what there is to consider when building savings.
What is building society savings?
Construction loan represents the combination of savings and the financing of a property. First, a homeowner saves in regular payments equity, to which he receives interest from the respective bank. If, for example, a certain sum is reached after 8 years, usually 40 or 50 percent of the target amount, the bank will add the remainder of the sum required for the construction project as a loan, which often even doubles the total. Thus, a Construction loan contract can mean high savings and a secure future.
While the interest on the paid assets is often not very high and somewhere between 0.5 and 1.5%, the credit is even cheaper. The interest rates here are in the range of 2.75 to 3.75 percent.
Targeted Construction loan sum: 50,000 euros
Credit interest: 0.5%
One time entry fee: 1%
Annual percentage rate: 3,6%
Monthly savings rate: 250 euros
Sparetime: approx. 7.5 years
Future Construction loan credit: Approx. 22,500 euros
Building loan: Ca. 27,500 €
Monthly interest and repayments: Approx. 250 euro
Redemption period: 11 years
Why building savings?
It is relatively rare for someone to afford an apartment or an entire house out of the ordinary, and in almost all cases a loan must be taken. Who starts early with the building savings, of course, saves first, of course, even a certain amount in fixed installments and secondly gets from the bank later a loan on very good terms, since already by the existing assets and the property, which is then funded, high collateral are available for the bank.
Save money through subsidies
Anyone who builds environmentally friendly, for example, plans a particularly climate-friendly house, can be supported by various programs and thereby save a lot of money. In the increasingly popular prefabricated houses, for example, there are different energy balances, between which one can decide and the better this balance fails, the higher the subsidy, which one can get from the state for it. The most important funding option by the state is the KFW program “Energy-efficient construction”.
However, it can be very complicated to plan a construction project for this promotion alone, which is why it makes sense here to secure expert advice. For example, fingerhaus.de offers a solid opportunity here. The company not only offers competent advice, but also entire construction projects and differently designed prefabricated houses.
Who should save money?
The answer to this question arises in principle from the other points in this article: Building savings should of course in the first place, if one intends to someday own a property, so a house or a private apartment.
However, at a young age you often do not know what you want to do later, which is why parents often sign a home savings contract for their children. Thus, a certain amount can already be saved in the years until the age of majority or until the beginning of employment.
However, usually a slightly lower sum is sought, which is intended rather as start-up capital for a later, own building savings.
Example of home savings for children and grandchildren:
Targeted Construction loan sum: 10,000 euros
Credit interest: 0.5% per annum
Credit Bonus: 1.5% per year
Monthly savings rate: 40 euros
Sparetime: approx. 11 years
Future Construction loan credit: Approx. 5,120 euros
When should you save money?
The simple answer: as early as possible. The slightly longer answer: Then, if it’s worth it and you can pay the rates in reasonable amounts. In addition, one should have already developed some idea of what the goal should be, so that you can vote the final Baussum sum and the savings rate each other. Otherwise, the sum is not enough in the end or you wait 15 years for the sum to finally be reached.
How to save money?
The process of building savings can be broken down into two crucial steps, the austerity phase and the loan phase.
However, of course, there are some lead times and things to consider before home savings really start.
Of course, the first thing to do is to go to the bank to get advice and discuss the goals that you want. Alternatively, it is also possible to inform yourself in the network, or should be used in the best case both, because not always the advice in the bank branch is the best.
Where to save money? Mortgage lending comparison
So we are at the heart of the matter, which providers have what offer? Where is good interest and a reasonable loan? Our home loan comparison helps further.