Home finance Loan types Interest rate risk

Fixed interest period and the agreed repayment amount 

The interest fixed in accordance with the fixed interest period and the agreed repayment amount are paid to the bank in one installment per month. The total term until the property is paid for in full depends on the repayment amount.

Connection loans After the lock-in period for the currently ongoing loans should be made for the existing balance to the outlet appointment of a new agreement. A comparison with other bank terms is often worthwhile, despite the rewriting costs for changing the land register.

Cap loans Here, the interest rate risk is designed to be variable with a certain range of interest rates. However, an interest rate cap is contractually agreed to limit the risk.

Intrasavings Bank loans In second place in the land register, state-subsidized financing shares at special interest rates can be used, for example, for energy-efficient construction or for housing.

Fixed-rate loan This form of loan requires repayment of the repayment and is only repaid in full when the security falls due.

Contractually secured even before the current construction financing expires

Forward loan The follow-up financing can be contractually secured even before the current construction financing expires. This means that today’s very low interest rates with slight interest premiums can be used to secure the connection conditions up to 60 months in advance.

Foreign currency loan The loan is not paid out in USD but in a foreign currency and carries interest. In these cases, very favorable conditions can often be realized, but the customer bears the full exchange rate risk of the foreign currency repayment.

Constant loan In this case, a fixed rate or fixed interest including the repayment is fixed until the loan is repaid in full. In this way, the monthly charges and interest can be secured over a very long period of time and possible interest rate risks can be avoided.

Home savings loans For possible repairs or investments, low-interest home savings loans can be taken, which may be possible without security through a land register entry. The loan amount can also be used as a replenishment loan before the home savings contract is allocated.