Building and purchasing – speaking of construction financing, what should you pay attention to
In case of a construction financing project the following criteria have to be concidered:
- How much can you repay monthly?
- What kind of fixed interest rate and repayment would make sense in your situation?
- Are there any special financial support options and subsidies available for you?
- How long shall the total term of financing last?
- In consideration of all costs, which banking institution is the most beneficial one?
- How can you protect yourself against rising interest rates?
Our experts from FinanzierungsExpert with their long-time experience in various banking institutions will develope, in co-operation with you, the best financing concept. Step by step during the whole process – beginning with your request, the following customized offer and the final transaction – they will assist and advice you. In the view of our professional advisors it is the first priority to guarantee a very reliable support service.
Secure yourself free consultation.
Debt reschedulingFollow-up financing
Follow-up financing offers great opportunities to secure the currently favourable conditions. Five years before the fixed-interest period of your financings arrangements will be expired, this option is already available.
Rely on our financing experts and inform yourself in detail.
Modernisation
How about buildung a new rooftop, how about implementing energy-efficient renovation and reconstruction measures or just applying a fresh coat of paint? Keep your property in perfect condition und therefore use attractive funding opportunities and financing options, provided by over 400 banks.
Subsidies
Let the governement assist you by repaying your property.
For each financing project our experts check the full range of subsidies. In doing so, they check for example, if low-interest loans with repayment bonus can be applied at the KfW Bank.
KfW loans
The KfW is a state development bank. In case of building, purchasing or rebuilding your property you can benefit from favourable loans or state grants provided by the KfW Bank. Those who combine real estate financing with KfW loans or KfW grants, often save considerable amount of interest costs.
There are several banks granting their customers, in addition to KfW loans, discounts on offered interests. The KfW Bank does not provide an instant access to loans for building and restructuring. Instead of that, on-lending credit institutions apply for promotional loans. These institutes cooperate with INTERHYP. This means that through INTERHYPE you can easily obtain a KfW loan, without any time effort.
Our financial experts will tell you everything you need to know about interest rates and other conditions concerning your construction financing and KfW loans. They will also provide you with informations about the following issues: whether special repayments are possible by taking out a KfW loan/whether you can apply for a grant on top of construction subsidies or whether processing fees for finance solutions are charged.
Prior to personal consultations regarding a KfW loan, you can use our computers in order to gain a profound insight into the present interest rate level.
In addition to KfW loans for construction and renovation measures there are other kinds of KfW loans, such as special loans for business start-ups and for students.
Informations about these credits are available directly at the KfW Bank.
Have you already made use of repayment bonus?
If not, then it is about time to change to a favourable interest rate, without spending extra money.
For further informations contact your adviser through fixed phone network.
The benefits of the KfW construction programmes
In case of funding your property, no matter whether you would like to purchase real estate or like to build, the KfW Bank not only offers you profitable interest rates. With regard to the usual interest rates you currently find at the market, there is another much more important issue. Much more convincing are other conditions, making new construction or renovation through promotional loan very attractive:
- fixed interest periods lasting up to 20 years
- financial aid while repaying
- repayment-free years at the beginning of the term
The following sample calculation regarding the progamm „153 KfW-energy efficiency house plus 40“ illustrates the benefits, you will get from:
Just imagine, you build an efficiency house according to the highest standards or you buy a new construction. The funds required for this buildung will be 150.000 Euro, plus expenses for the plot of land amounting to 70.000 Euro.
The KfW Bank will just subsidise the costs for the efficiency house. This means that you are able to apply for a promotional loan in the amount of 100.000 Euro. In such a case the loan interest rate will be 1,3 percent. In addition, you have equity capital over 60.000 Euro. All in all, you just require a traditional loan for the amount of 60.000 Euro.
The uniqueness of the promotion lies in the fact that this devolpment bank will provide you with a repayment bonus amounting to 15 percent of the loan sum. In this case you will receive 15.000 Euro. Furthermore, the bank will grant you a repayment-free period within the first three years after disbursing the loan. The fixed interest rate period ends after 20 years. During this period you are able to repay the KfW credit, at the agreed interest rate.
In financial terms, the benefit of that becomes clear:
- During the first three years you will make use of KfW´s loan interest rate. In this time you only have to focus on repaying the traditional credit.
- Within the first year you will receive a repayment bonus amounting to 15.000 Euro. As a result the amount borrowed drops to 85.000 Euro.
- By the fourth year you will start redeeming the KfW loan.
- Due to promotion, you simply have to repay 85.000 Euro. During the specific term the interest rates are about 11.600 Euro. That means during the entire time, from receiving the credit amounting to 100.000 Euro up to the complete repayment at the agreed interest rate, you only pay off about 96.600 Euro. Finally, the government makes you a present of 3.400 Euro through the Kfw credit.
- Finally, the loan interest rate is -0,35% in real terms. There is no other way to finance your real estate in a much more favourable way.
