Real Estate Financing
You want to finance a property?
Take advantage of the current low level of interest rates– around 80% of ZIEGERT customers take advantage of this by taking out a real estate loan and find out more about our team of experts. We advise you competently and professionally about the existing possibilities and support you as an estate agent for residential property in Berlin within the framework of the largest financing consultancy there, independent of banks.
Take advantage of the more advice ZIEGERT has to offer
1. Prompt processing
Long waiting periods are often the norm at credit institutions. We have excellent contacts to direct decision-makers and thus accelerate the processes so that your financing concerns are dealt with promptly. In addition, we accompany you personally and individually throughout the entire process.
2. Support exactly tailored to your requirements
Our counselling services focus on your particular life situation. This also includes your financial possibilities and individual wishes and also takes place if you have acquired a property through another real estate agent. Since we cooperate with 300 loan providers, we offer you optimal conditions for real estate financing. With us you will receive the offer that suits you best.
3. Favourable and attractive offers
Find with ZIEGERT the Germany-wide cheapest daily offer at credits! Through a precise analysis of your individual situation and requirements, we work out a financing plan that is tailor-made for you. Here we pay particular attention to a maximum of flexibility, from the financing consultation to the signing of the contract.
4. Efficient processing
With us you receive continuous support and advice right from the start. We make sure that your financing enquiry is processed quickly and your loan is paid out quickly and take over negotiations and the processing of applications for you. In addition, we offer you competent advice by telephone or in person on our premises. We do not only provide this service in German, but also in English, Turkish or Spanish if required – of course at no additional cost.
5. Reliable repayment rates
Due to the positive economic development in the USA, there is currently a high demand for capital. This leads to increased investment opportunities. Since some countries have high levels of debt, the European Central Bank (ECB) currently has only limited options for action.
6. We secure you in every financial situation
Many people dream of owning their own home, but it is not uncommon that they do not take the path of buying real estate because of concerns about financial risks, such as prolonged illness or the loss of a job. At ZIEGERT, you can obtain special insurance cover upon request. In cooperation with AXA, we offer you an optimal solution in which the repayment of the financing instalments is carried out for a period of up to 24 months by the insurance company.
7. Your personal contact person
We put our experts at your disposal as contact persons in order to offer you the best possible advice. Anyone who wants to purchase a home but has little financial resources of his own or a low credit rating is often disadvantaged by financing banks. These banks often set the real estate value below the market value. However, as the real estate markets develop advantageously over the long term, you benefit from numerous opportunities if you have a good network of partners. To do this, you can send enquiries to several banks or simply benefit directly from our extensive pool of independent cooperation partners and experienced financial experts and contact us.
8. Optimal interest conditions
In Germany, it is customary to offer loans at fixed interest rates. In addition, the interest rate is currently at a record low. Use these circumstances for your real estate financing. Many banks offer you loans with terms of up to 30 years, and of course also loans with a term of ten or 15 years. Repayment is between two and three percent, as the current situation is that a lower repayment would have a term of 52 years and there is a risk of a large remaining debt at the end of the fixed interest period.
9. Advice on follow-up financing
Due to the current interest rate situation, it may make sense to set the interest rate for a long period of time. If your maturities are not long enough, it may be advisable to save a repayment reserve, for example in the form of a home loan and savings contract. We will be happy to advise you on this in detail, because we not only keep an eye on your real estate financing, but also take care of a favourable follow-up financing. With our support, your dream of owning your own home at optimal conditions will soon become reality.
Purpose and application of real estate financing
The decision to build or buy a home is a fundamental one. One of the first points to be clarified here is the question of financing, because it is rather seldom the case that a real estate buyer or house builder has the necessary reserves to bear the costs completely independently. In this case, real estate financing takes effect and acts as support.
With a few exceptions, this has basically the same characteristics and functions as a regular loan or credit. As a future real estate owner, you will receive funds from your bank. These are repaid over a long period in the form of an installment including interest. The construction financing has a special feature, as the land charge is entered in the land register. This is the state register, which performs an administrative function for all property rights. The registered property serves as security for the bank if the installments are not paid. In addition, the real estate loan is provided with the stipulation that it be used exclusively to cover the costs of acquiring or building residential property – it is therefore not freely usable.
Advice and support for your real estate financing
Irrespective of whether you have already made a decision for a specific property, we are at your side with our broad specialist knowledge and comprehensive experience as a competent contact partner if you would like to find out more about real estate financing. Our experts from a total of 300 independent banks provide comprehensive information on all eventualities, possible difficulties and answers to all questions. With one of our expert advisors, you will discuss your financial options and whether you are eligible for state funding. During the consultation, all forms of real estate financing are closely examined in order to develop a financing strategy tailored to your individual situation. If you have your own ideas and visions, these will of course be taken into account and taken into account in the design of the financing. The aim of the consulting offer is to provide you with several financing offers that are optimally suited to your needs. In cooperation with the specialist advisor, you will sound out the advantages and disadvantages in order to find the ideal form of construction financing step by step. Our expert has an advisory function – the decision remains with you.
Once you have selected a form of real estate financing, the advisor will assist you with all application formalities and work with you to compile the necessary documents to be submitted to the bank. If the bank reviews the application and approves it, you will receive the contract documents, which you check with the expert and clarify any remaining questions. When you sign the contract, the real estate financing is secured. In addition, our expert advisor will be at your side to answer any questions you may have regarding the loan. He will advise you on instalment and modernisation loans as well as on the follow-up financing of the property.
What does the real estate loan cover?
The cost of financing a property depends on the terms of the construction loan. Note the mortgage interest, which is a monthly fee charged by the borrower to the bank. In addition, the fixed interest rate also plays a central role. The interest rate must remain constant throughout the term of the contract and may not be changed by you or the bank.
The optimal fixed interest rate for the financing of residential property
Interest rates are currently at a low level. In such times, it makes sense to opt for long-term fixed interest rates in order to enjoy low interest rates for as long as possible. This can be up to 30 years. If the rates are at a high level, however, short terms of 5 to 15 years are recommended. In this way, you can benefit from interest rates if they fall again in the future. In addition to interest, repayment of principal is an important aspect to consider when repaying a real estate loan. This is the repayment amount paid to the bank. If the repayment rate is higher, you will have paid off your loan more quickly.
The monthly instalment that the bank receives from you is therefore made up of repayment and interest. Many banks offer a so-called annuity loan. With this, the rate always remains constant, but the ratio of interest to repayment changes. The latter increases over time, since with each payment the residual debt is reduced and the percentage of it calculated building interest thus decreases.
Special options for unscheduled repayment
The unscheduled repayment is an important sensible option, which you should make use of in any case and agree with your bank. It comes into play when you want to obtain more money through unscheduled funds, such as an inheritance or a salary bonus, and use these to cover the financing. In this way, you accelerate the repayment as you reduce the residual debt, the ratio of interest to repayment shifts and the repayment rate increases. This increases the residual profit at the end, which exceeds the amount of the unscheduled repayment.
Influence of interest on repayment
The amount of interest has a significant influence on the repayment period. The reason for this lies in the special characteristics of an annuity loan, as it is characterized by constant installments. However, since the remaining debt decreases with the first repayment, this also affects the interest that is calculated on the basis of this debt. This means that the interest portion decreases with each installment payment, while the repayment portion increases. With low interest rates, the interest portion decreases more slowly than with a high interest rate, so that the repayment rate also rises more slowly. As a result, it takes longer for you as the borrower to pay off your entire debt. So take advantage of periods of low interest rates to agree a high initial repayment.
This can be illustrated using a calculation example: If you take out a loan of €100,000 with an interest rate of 10% during a high-interest phase and choose an initial repayment of only one percent, you pay monthly installments of just under €920. Although this is a large amount, it has the advantage that you have already paid your debt after 21 years. If the interest rate is two percent and the initial repayment is one percent, it will take 55 years for you to be debt-free. So the consideration of how the initial repayment should be adjusted to the interest rate makes perfect sense in terms of your long-term planning.
Dependence of interest on equity capital
When calculating the interest rate, your available financial resources in the form of equity also play a role. The higher the equity, the lower the interest rate. So if you are only able to cover the ancillary purchase costs and have to finance the purchase price entirely through the loan, the interest rates will be higher than if you can also cover part of the costs of the purchase with your equity capital. Ideal conditions are given to real estate buyers who can cover at least 40% of the mortgage lending value of a property as well as the ancillary purchase costs with their own funds. The mortgage lending value is below the purchase price because a safety discount is deducted. Therefore, you get the best conditions if you can finance at least half of the sum for the investment with your own capital.
How is the optimal term of real estate financing determined?
The question of the term of a loan is of great importance, as the interest rate depends on it. With a shorter contract term, you pay lower interest with advantages that are between 0.3% and 0.4% compared to contracts that run for 10 years, while a longer term is accompanied by higher interest rates. It is not unusual, for example, to have to pay about 0.3 to 0.4% more interest on a 15-year contract.
However, there are also disadvantages to a short period of time, as interest rates can change and you may have to pay higher interest rates in a few years. However, if the rate were to fall, you could benefit financially from lower interest rates. If you are looking for security and consistency in times of low interest rates, a long-term financing plan with a long period of fixed interest rates is recommended.