Normally, you can only cover a portion of the purchase price of your dream home with your own funds. So you finance the greater part with a mortgage. This means you’ll need a bank loan that’s secured by the real estate.
- Consultation: Find out from your client advisor about all the ins and outs of buying real estate.
- Credit agreement: The credit agreement is signed after the financing proposal has been prepared.
- Real estate purchase, mortgage note as security: You now sign the purchase agreement and become the owner of your dream property. The real estate serves as the bank's collateral.
- Mortgage payout: The bank pays out the mortgage amount in accordance with the purchase agreement.
- Mortgage interest & repayments: From now on you pay mortgage interest to the bank and settle your mortgage through repayments.
As a rule of thumb, you must finance at least 20% of the real estate's value as determined by the bank from your own resources. So it's possible for you to cover up to 80% of the real estate's value with a mortgage.
Of this amount, you can finance up to 67% of the value of the real estate with a first mortgage. You don't need to amortize this loan, i.e., pay this back. You can finance an additional 13% of the real estate's value with a second mortgage.
You must repay the second mortgage within 15 years or by the age of retirement – whichever comes first.
Calculate the maximum purchase price
Use our calculator to find out how much you can afford to pay for your dream home.
Repaying a portion of your mortgage on a regular basis over a defined period of time is called “amortization.” Generally, you must repay the second mortgage within 15 years or by the age of retirement – whichever comes first.
In the case of direct amortization, your debt is reduced on a regular basis – normally every quarter – by a fixed amount. As a result, the outstanding amount and interest burden are reduced over time.
In the case of indirect amortization, the debt remains unchanged. As homeowner, you repay the amortization amount, for example, into a 3a retirement solution, which is pledged as security to the bank. This allows you to build up your pension savings. At the latest, the capital is paid out when you retire, and the mortgage is paid back by this amount.
The right combination of short and long-term mortgages is crucial to the long-term, worry-free enjoyment of your home. You can choose between:
- Fixed-rate mortgage: With a fixed-rate mortgage, the interest rate remains the same for the full term. This allows you to plan reliably and protects you against rising interest rates. However, you won't benefit from possible interest reductions.
- Libor mortgage: With a Libor mortgage, you anticipate interest rate fluctuations, and you benefit if the interest rates are low or fall. Compared to a fixed-rate mortgage, the interest rate on a Libor mortgage is generally much lower.
We’ll work out a personalized mortgage plan with you in an individual consultation. We’ll then make you an offer with an attractive mortgage interest rate.
What will happen to interest rates?
Our interest rate forecast keeps you up to date with the current interest rates and how they're likely to change – free of charge by email.
Together, we’ll find the right mortgage for you
- Review of the purchase price based on location and property data.
- Comparison of the purchase price with reference properties in our database.
- Comprehensive information on the municipality, price level and tax rate
- Development of a financing strategy that suits you
Our experts are here for you – we look forward to speaking with you.