Welcome to our free, no-obligation construction financing comparison service.
The interest rates for construction financing are currently very favorable and with our non-binding comparison offer, you can exploit the full savings potential by selecting the most favorable provider.
Construction financing comparison online
All you need to do is provide a few details about the reason for the financing, the amount of the loan, the purchase price and your income, as well as your contact information, which will of course be treated as strictly confidential.
- 100% free and non-binding comparison of offers
- Finding the right construction loan quickly and easily
- Comparison of all major providers
- Current interest rates from over 300 banks
- Trust through satisfied customers
Introduction
Many germans would like to own their own property at some point, so that they no longer have to pay rent and can be more independent in other ways. Whether you want to build your own home or buy real estate, if you don't have 100.If you have more than EUR 000 in equity, construction financing is almost always necessary in order to use the resulting loan to buy or build a house or apartment.
Construction financing is certainly the most extensive and at the same time also the most complex form of financing in the private customer sector, because there are a number of aspects to be considered in connection with financing.
It is therefore very important to take a close look at the various offers from the banks and compare them with each other, because by taking advantage of a favorable financing offer, it is possible to save interest, which can add up to a considerable sum over the many years of repayment.
The various components of construction financing
In most cases, real estate financing is handled by a bank and in many cases consists of various components. It is rare that the entire financing requirement is covered by just one loan, but rather the customer usually takes out various loans, each with follow-up financing, which together make up the debt financing.
But the available equity capital also plays an important role, especially in home financing. Most banks try to convince their customers that a stable real estate financing must consist of at least 15 percent equity capital.
The majority of the debt financing then consists of a real estate loan, which is available in different variants, for example as an annuity loan or as a bullet loan. In addition, other loans can be included, such as a building society loan and a kfw loan.
Interest rates, additional costs and collateral for home financing – baufinanzierung test
As already briefly mentioned, there are many aspects for the customer to consider in the course of home financing. When looking for the right construction financing offer, it is particularly important to first decide on the right form of interest rate structure and interest rate development, i.E. Depending on the situation and prospects for capital market interest rates, for a fixed interest rate or for a variable interest rate.
In addition, it is extremely important to compare the interest rates between the banks, whereby it must be noted in this regard that the interest rate for many banks is based on the creditworthiness of the borrower.
A not inconsiderable cost factor, particularly in the case of house financing and in connection with the loans used, is not only the interest rate, but also the other expenses, which are sometimes also referred to as ancillary costs of the construction financing. These costs include, for example, interest on the loan, processing fees, appraisal costs or the fee for the registration of the basic debt. A land charge is almost always provided as collateral to the bank, which is nowadays used much more frequently as collateral than a mortgage.
Construction financing procedure: tips
Since a baufi is not only a very extensive form of financing, but quite a few consumers are also concerned that they do not know enough about the subject, there are certainly fewer properties financed in germany than would actually be possible. However, if you take a closer look at how the process actually works, you will certainly be able to dispel some of the "fears" that many consumers may have in connection with the topic of real estate financing.
The process of a construction financing is more complicated than a simple loan.Before the actual construction financing can even be tackled, the right property must of course be found or. A plot of land should be available on which the house can be built later. Because taking care of the money, of course, makes sense only when you already know the amount of costs that will come to you. At least the construction costs or. The purchase price of the property should be known.
Compare offers and decide on a bank
Particularly in the area of construction financing, comparing offers is extremely important, so this should always be the first step in a construction project. Not only banks, but increasingly also insurance companies, such as barmenia, come into question as providers. The kfw bank with its subsidy programs should also not be forgotten, and perhaps a building savings contract has already been saved, so that a building savings loan can be integrated into the financing.
After comparing the offers, you should then choose the most favorable or the best one. Decide on the most suitable loan offer, whereby the best offer can usually be distinguished by the most favorable interest rate anyway. Once you have decided on a bank, the second step is to contact it. This can be done either in person at the branch office or via the internet, as real estate loans can also increasingly be applied for online nowadays.
Clarify loan conditions, calculate rate and register land charge
After the loan seeker has decided on a monetary institution, it is then necessary to talk about the various construction financing conditions of the real estate loan. There are some important questions to ask, such as what interest rate you want to use (fixed or variable), whether you can make special repayments, whether you are going for a bullet or annuity loan, and what loan rate is affordable. The "right" rate is particularly important, because the financing should of course be as stable as possible, which cannot be the case if the loan rate is only just affordable.
Therefore, the calculation of the rate is very important, which can be done on the basis of the loan amount and interest rate conditions. After all the conditions have been determined in detail, the bank then assesses whether the real estate loan can be granted, i.E. Whether the customer's creditworthiness is sufficient. If this is the case, the land charge must then be entered in the land register as security for the bank and then, in principle, the loan can already be paid out.