Real estate financing

We offer comprehensive support in exploring all available real estate financing options. When purchasing a property, you have various financing options available, which can be processed through banks, insurance companies, or government institutions. Security such as mortgages or land charges can be registered in the land register to protect against loan defaults.

Financing for private purposes

We distinguish between financing for personal use (for the purchase of a property for one's own occupancy) and financing for investors (for the purchase of a rented property). In addition to equity capital, liquid securities and debt capital in the form of loans can be used for property purchases. Furthermore, government subsidies such as employee savings allowances, the Riester pension scheme for housing, and KfW bank funding programs can be utilized. Loans from third-party providers are typically offered by banks, building societies, state development banks, the KfW (German Development Bank), and insurance companies.

Individual financing options

Mortgage loans: A mortgage loan is the most common form of real estate financing. It is usually obtained from banks and offered as an annuity loan with a fixed monthly payment over the repayment period. Repayment typically takes place over a period of 20 to 30 years. The advantage is that the continuous repayment of the loan saves on interest. The loan amount decreases over time, which also reduces the total interest paid. A disadvantage is the fixed commitment to the repayment schedule during the fixed interest rate period.

Building society loan: Building societies offer interest during the savings phase. Recently, however, these rates have become less attractive and have been reduced by fees. Once a certain portion of the total sum has been saved, the building society savings contract is considered ready for allocation. The difference between the savings balance and the target building society loan amount can be taken out as a loan. Repayment is usually made quickly with higher monthly installments.

Building societies often accept a second-ranking mortgage or even waive the requirement entirely for smaller loan amounts. However, high closing costs and short repayment periods can present challenges. The advantages lie in fixed interest rates, the possibility of being exempt from a mortgage requirement, and the option for unscheduled repayments.

Government funding: Various government subsidies are available. The "Wohn-Riester" scheme provides allowances and tax advantages for repaying a mortgage. However, the subsidized amounts are subject to taxation in retirement. Special regulations apply when selling the property. The KfW (German Development Bank) offers low-interest loans, interest rate reductions, or grants for the construction of energy-efficient homes or energy-efficient renovations. Similar options exist through the Federal Office for Economic Affairs and Export Control (BAFA). In addition, there are regional funding programs offered by federal states or municipalities.

Insurance loan: Insurance-backed loans are based on a life insurance policy. The loan interest is paid monthly to the bank, while a premium is simultaneously paid into the life insurance policy. After the policy term expires, the premiums, including interest and any bonuses, are paid out and used to repay the loan. It should be noted that half of the profits are subject to taxation, and additional costs may be incurred by the borrower if interest rates change. The main advantage lies in the full repayment of the entire loan amount at a predetermined date.

We use our expertise to ensure you can make the most of all available real estate financing options. Our specialists are on hand to provide you with comprehensive advice and customized solutions to optimize your real estate financing.