Financing for your dream property
Despite the rise in interest rates, many people are still considering buying a property, as the desire to own a home is widespread. However, the importance of sound and individually tailored real estate financing should not be underestimated. Have you found a property in our range and now need a suitable loan? We will be happy to put you in touch with the right contact person for optimal financing advice. This means that almost nothing stands in the way of you buying your new property.
Financing a property: It has to fit
Especially since the real estate market has changed significantly and the key interest rate has been raised several times, it is important to get detailed advice from experts on real estate financing. The conditions for repayment and redemption must be adapted to individual possibilities and planned with foresight so that you do not run the risk of having to sell the property again after a while because the financing becomes unaffordable.
What is the current interest rate? Is a high repayment rate an advantage? Does a long repayment phase or a short one make sense? How high should the monthly income be? Is the Schufa score sufficient for a loan? You also need to think about the duration of the fixed-interest period: How high will the interest rates be in 10, 15 or 20 years? Should you already be thinking about follow-up financing? Will you still be able to service the loan installment or will a sale be unavoidable?
The purchase price of your own property, including the ancillary purchase costs, must be affordable - thanks to the available equity and the monthly repayments. Furthermore, some financial leeway for unforeseen situations and any additional purchases should also be taken into account. Financing with very little equity is usually only possible with a very high income. You should also bear in mind that many banks now require more equity, sometimes between 20-30 percent, due to the rise in interest rates. You can use our budget calculator below to determine your financial possibilities.
As solution-oriented brokers, we are happy to offer our prospective buyers support in fulfilling their dream of owning their own home or making an investment. As your financing brokers, we put you in touch with contacts at our financing partner Dr. Klein and various banks.
Finding the right financing concept
The competent advisors at Dr. Klein and our partner banks will work with you to develop various solutions for sensible, suitable financing. Various factors are decisive for this: the purchase amount of the desired house, condominium or investment, personal income and possible reserves as well as desired repayment modalities. As the financing market is very diverse, our partners are sure to find the right financing concept for you so that the purchase of a property does not become an unnecessary monthly burden. Whether construction financing or a loan: Personal advice on buying with real estate financing is essential. Our partners have the necessary know-how, many years of experience and can also show you the funding options available.
What are the advantages of a financing broker?
You can rely on our contacts and experience with financing consultants. On the one hand, you save time searching for reputable advisors and can concentrate on other things. On the other hand, you will also benefit from our contacts in terms of prompt appointments for advice. This can be an advantage, for example, if a purchase decision needs to be made quickly. Furthermore, advice from independent financial advisors is recommended in order to compare financial products and not just the products of your house bank. Please contact us directly if you have any further questions or if you would like us to arrange a non-binding personal meeting with an advisor.
Use our mortgage calculator
Frequently asked questions about real estate financing
What is the best way to finance a property?
The best way to finance the purchase of a property is through a combination of equity and a real estate loan. If you are buying a property as an investment, you can also service the loan using the rental income.
Can you buy a property without equity?
Buying a property without equity is only possible in individual cases - namely if the buyer has a very good credit rating and can prove a high, stable income. Many credit institutions refrain from granting loans without equity at all.
How much equity do I need to finance a property?
An equity ratio of 10 to 30 percent is recommended. The usual requirement of banks is 15 percent for first-time buyers. As a general rule, the higher the equity ratio, the lower the loan amount required - so the loan is paid off more quickly. The loan conditions are also usually more attractive with high equity.
How high should the monthly financing installment be?
As a rule of thumb, buyers should not have to pay more than 40 percent of their net income each month for financing installments. There should be enough money left over to maintain the standard of living to which you are accustomed and to build up a financial cushion for repairs.
How long does the financing for my property run for?
A real estate loan can have a term of up to 30 years. It varies depending on the equity share, loan amount and chosen repayment installment. There are also differences from provider to provider with regard to the maximum possible loan term.
How long does it take for my financing to be approved by the bank?
Provided the bank has all the necessary documents, the loan is usually approved within one to two weeks. Depending on the provider, however, processing may take longer.
What costs are incurred when buying a house?
When buying a house, you don't just have to pay the purchase price plus interest. There are also incidental purchase costs - in addition to the land transfer tax (6 percent of the purchase price), these are the notary fees (1.5 percent) and the costs for the land register entry (0.5 percent).
What is a land charge?
A land charge is a mortgage. It is used to secure the real estate loan: If the borrower no longer meets his payment obligations to the bank, the bank may seize the property. The land charge is entered in the land register and can either be deleted after the loan has been repaid or used as security for another loan.