Construction financing in times of COVID-19

Due to the current situation a lot of us are concerned and confused. Concerning this mattter, we would like to confirm: Continously, even at times of Corona pandemic we will remain at your side, however in slightly modified form. At any time, the team of FinanzierungsExpert provides you with an extensive consultation, regarding your future projects including the requests about your ongoing construction project.

In order to comply with the required rules of behaviour for the protection of all persons, we will give expert advice by phone, via Skype, Zoom and Facetime or by other media, until further notice. Now, you can submit all your documents in digital form. Afterwards we will pass them to the responsible bank, to make sure possible agreed payment deadlines are met. Furthermore, we gladly adivse you in general terms, when you are still looking for the right property and you want to to get informations about the processing and the different financing solutions.

At present, should you have a need for credit, you don´t have to worry about the fact that some banking institutions have stopped temporarily their branch business service. Most banks we are working with are characterized by highly efficiency. That is why loan applications can completely be handled in digital form. Also in the current situation the FinanzierungsExpert team will find for you the right financing solution and is going to manage everything without any physical contact.

In case of income loss, what should be done when the interest rate can´t be paid back?

Banks are perfectly aware, that liquidity difficulties will increase over the following weeks. In order to assist you properly in those challenging times and to take care of your problems, namely paying off your well-deserved homestead, several of our banking partners offer the following solutions:

Suspension of repayment:

What does that mean? The monthly loan repayment will be suspended for a specific period. During this time, merely your monthly loan interest shall be incurred. Often, this kind of option is already regulated by the loan agreement. In addition, there are some banking institutes which are currently willing to find individual financial solutions for you.

Deferral of loan repayment:

Deferral ol loan repayment means that the complete amount of annuity (interest rate and redemption) shall be suspended. The remaining rate will be attached to the original maturity date.

Change of repayment rate:

In case you have agreed on a higher repayment rate with the option of changing the rate by contract, you can now reduce your redemption in an easy way. Most banks offer a minimum rate of repayment by around 1%. Please note, by reducing the repayment rate the initial loan duration will be extended. Furthermore, in many cases you can only once change the repayment rate within the fixed-interest period. Should you increase repayment after the crisis, it cannot be ruled out, that the further process depends on your bank´s goodwill.

Please bear in mind, banks respond differently to the corona crisis, and the provided options differ from bank to bank.

Should you experience a period of financial difficulties, you should take immediate action. Please contact your bank or us. At any time, we are glady available by phone. And we will do everything possible to find the right solution for you.

We wish you and your family to stay healthy and that you will soon emerge from this crisis without any damage.

 

Do you have any more questions?

An individual consultation appointment can be arranged by contacting us:

Phone: 0721 – 56 42 42
E-Mail: info@FinanzierungsExpert.de or just use our information contact form provided on this website.

Information about the author:

Alexandra Schneider is a certified bank business administrator and she writes about up-to-date topics, for FinanzierungsExpert.