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.