GARBAGE NEWS. A building loan is indeed still a popular form of investment in order to finance a property. The best mortgage offers, however, not in the light of low interest rates and non-transparent contracts.
Mortgages. A building loan is among the Germans a popular variation for mortgage lending. A savings agreement at first seems a sensible way to finance the construction. Capital is saved up as equity and on the basis of which a loan is made, which serves to finance the property. The accumulated capital brings interest rates, the loan is granted on favorable terms and the building society has secured its financing. So far so good! The problem with building society contracts, however, their low interest rates, so that the effect even perverted into its opposite. The only solution here by count and consider whether not yet from the outset an annuity is more appropriate.
The problem with the interest
In a conventional annuity borrower pay off right from the start its credit. Your rates consist partly of interest and to another part of repayment, which the loan amount over time is low and thus also reduces the interest. With a savings agreement repay depositors at not from the beginning. You save on their rates and pay a small interest portion per month. Although the accumulated interest rates, the interest lies mostly below the payable interest. The banking of amounts therefore makes little sense, since it often represents a decrease business due to lack of repayment.
Allowances have a positive effect on a building loan from
If you think about the conclusion of home savings contracts, should make this fact aware and expect definitely rates up to today. Only if a positive effect can be calculated, the conclusion of a savings agreement makes sense. A fact that is has a positive effect on savings contracts various allowances. Through extras like RRSPs or employer residential Riester the monthly payment can be increased, that is a savings agreement despite absence of repayment at the beginning still worthwhile.
Non-transparent agreements for consumers
For consumers it is difficult to compare the different building savings, because the building societies are not required to identify the total effective interest rate. This usually has to be calculated laboriously and it is not apparent at first glance.
Another negative factor in a savings agreement is the sales charge. This is due as soon as a building loan contract is concluded and is also reported not directly transparent from many vendors.
If a savings agreement is terminated early, depositors have the chance to recover the sales charge with some providers. This circumstance is when detained by contract and should be read in small print or requested from the consultant.
Check a mortgage exactly
Who is unsure whether a savings agreement for him is the right, which can go beyond the classic mortgage loan. Both versions to compare makes sense and even if there is no equity has been saved, a mortgage can be implemented via a bank in every case. Caution should be exercised in any case dubious intermediaries who want to get a signature from the treaty as soon as possible. Take your time, check all the terms and conditions carefully and read just as well at home savings contracts the fine print. Here in fact conceal the most special conditions such as the effective interest rate and the amount of the final fee, to informing you of a good consultant from.