Real Estate Financing
Real Estate Financing: Independent, Tailor-made and Competent
Real estate financing is a very individual project. Many factors such as your personal wishes, your financial opportunities and special conditions combined with the desired property must be taken into account in the best possible way. There is no standard solution. We try to implement your wishes as much as possible without compromises, as optimally as possible. We ensure that your project is carefully planned to avoid unforeseen mistakes and to avoid any risks. With our many years of experience in the market and the ability to integrate and compare almost all leading financial institutions, we can handle your project in the best possible way. Of course, we check to what extent KFW or other fundings and, if necessary, different loan conditions come into consideration.
The typical process of successful real estate financing
You can call us or send us an email via our website, or fill out our contact form / Financal Data (This request is in German. Please contact us, if you need any assistance). We are at your disposal. If you send us the following key data, we will be able to support you to the best of our knowledge. These are i.a.
- Your personal data such as your Name, email, telephone, earnings and equity
- Property data (if available) such as price, location, purchase offer
- Financing request such as affordable monthly instalment, loan term, low interest
Now free consultation / Daten zur Finanzierung (Financal Data )
We take the time to give you the best possible advice. It is best to get together and to discuss all the details, to answer your questions and to clarify any open questions.
If you prefer that we do an initial research with your data, in order to carry out a market analysis in advance, we need all the essential details, about including your personally and financial data, as well as information about your desired property.
By the way, our advice, engagement and mediation are non-binding and free of charge for you. We get our money from the lender for processing and brokering, no matter which lender you ultimately choose. Our experience is your guarantee of success.
Now free consultation / Daten zur Finanzierung (Financal Data )
After extensive research among 400 financial institutions, evaluation and comparison of the financing terms, we select the institutes that offer the most optimal financing terms for your desired property. Together, we discuss the advantages and disadvantages of the selected offers and clarify all the grey zones so that you can take a decision which institute to apply for. Depending on the bank and financing requirements and whether subsidies should be taken into consideration, various documents have to be submitted to examine the real estate financing.
You will receive the list of the required documents from us. You put them together and if necessary, we will help you e.g. during completing of self-disclosure.
When all the necessary documents are available, we examine them for completeness and clarify any open issues with the bank of your choice. In this case, you benefit from our many years of experience and knowledge on which special features have to be observed for successful approval.
The bank of your choice checks your application. The loan approval is usually made within a few days. Now all you have to do is to sign the bank loan offer and submit it to the bank.
We are at your disposal until the entire loan amount has been paid out. We support you in all questions regarding the purchase of the property to the best. And even after the successful payment, we remain your advisor and partner in all questions of financing; at the latest when you need follow-up financing after the fixed interest rate period has expired.
Now free consultation / Daten zur Finanzierung (Financal Data )
We are your partner for real estate financing
Buy a property or continue to pay rent?
For tenants, it may be worthwhile to finance his own four walls instead of renting it. Today’s low-interest rates are your chance. If you pay a net rent of € 1,000, you could get a loan of around € 250,000 under today’s loan terms. Your rent corresponds to a loan with a term of 20 years, 1.3% interest, and 3.5% repayment in total 4.8%. This means that for a property loan of € 250,000 you would pay € 1,000 a month in total. After 20 years, there will be a remaining debt of around € 50,000, which could be paid off in another 4-6 years with follow-up financing with similar conditions and rates. Therefore, become a property owner and secure your future instead of continuing to pay rent.
Purchase / rental calculator (Kauf / Miet-Rechner)
Fundamentals of solid Real Estate Financing
It is tempting to use the actually historically very low interest to finance expensive properties with little equity and a lot of credit, with low repayment and long loan terms. However, this approach involves risks. If a solid financing plan is drawn up, these risks can be easily identified.
- Construction costs/purchase price of the desired object,
- Own resources (equity, earnings, own work, etc.)
- Expected additional costs (notary, land register and brokerage fees, real estate transfer tax, etc.)
You are on the safe side if you can pay the additional costs and part of the purchase costs of the property with your equity.
Low equity/down payment can become an obstacle. According to Stiftung Warentest (a non-profit German consumer organization), interest rates rise particularly high if the mortgage loan exceeds 80% of the value of the property. High equity reduces the interest rate, the term, the loan amount to be repaid and is a strong argument for the financial institutions when approving the loan application. If the customer has little equity, he must expect a correspondingly higher interest rate and the application may be processed slowly or may not be accepted.
Some financial institutes can provide 100% financing if the borrower’s creditworthiness is very high.
When building a house, the in-house services are often set too high or the expected renovation costs are set too low when buying an existing property. Notary and brokerage fees and real estate transfer tax underestimated.
The notary and land register costs amount to approx. 2% of the purchase price or construction costs. The brokerage fees and real estate transfer taxes vary locally. For example, in the Frankfurt area, the real estate transfer tax is 6% and the brokerage fee is 3,57% including VAT.
Notary & land register calculator / Notar- & Grundbuchrechner
With longer credit periods, the interest and the monthly installments to be paid increase. At today’s historically very low-interest rates, it is worth choosing longer terms.
In times of low-interest rates, choosing an optimized repayment is particularly important. The repayment should be able to be adjusted during the term if necessary. Repayments that are too low lead to very long terms. High repayments increase the monthly instalment.
We advise you to get optimal and worry-free financing which you can afford.
Now free consultation / Financial Data (Daten zur Finanzierung)
Our recommendations for minimizing the risks of real estate finance:
- Conservative calculation: The amount of the loan and the monthly loan instalments should be affordable even in the case of future fluctuations in income.
- Pay property instead of rent: Converting your previous rent can already form the main part of the financing.
- Highest possible equity: You get better conditions minimize your risks and your application has better chances of approval
- Long term: You have planning security, avoid risks and protect yourself from deteriorating conditions
- Agree on special repayment: You can use special payments to reduce your debts in times of good income.
- Optimized repayment: The choice of the optimized repayment amount and, if necessary, the option to change the repayment amount, we will discuss with you advantages and disadvantages.
- Loan Type: Choosing the right loan type can be crucial.
- Solid and independent advice: An experienced advisor not only ensures you optimal conditions, but also minimizes your financing risk
REAL ESTATE FINANCING with us
We are your independent and impartial advisor in all questions regarding real estate financing. The earlier you come to us, the more extensive and timely we can advise you. Taking your data and wishes into account, we carry out an extensive and objective financing analysis at more than 400 leading financial institutions, present you with the best offers and their best conditions so that you can make the right choice.
By the way, our advice, commitment, and mediation are non-binding and free of charge for you. We recive our money from financial institutions for processing and brokering, no matter which lender you ultimately choose. Our experience is your guarantee of success.
Do you have any more questions? We are happy to answer all your questions in our consultation. Below are the most common questions and the answers:
Can I securely finance my desired property?
After checking your personal details and the data of your desired property, we can answer this question for you.
Do I need equity / down payment?
As a rule, yes. After checking your data, we are able to tell you what minimum equity you need and, if necessary, how to optimize financing costs with higher equity.
What additional costs can I expect?
The notary and land register costs amount to approx. 2% of the purchase price or construction costs. The brokerage fees and real estate transfer taxes vary locally. For example, in the Frankfurt area, the real estate transfer tax is 6% and the brokerage fee is 3,57% including VAT. Please use our additional cost calculator for the notary, land registry office, and real estate transfer tax above.
Which repayment amount should I choose?
To find the right repayment amount, we have to exchange ideas thoroughly. The general rule:
The less you repay, the lower the monthly instalments and the longer it takes for the loan to be paid off in full. The higher you can repay, the faster you pay off your loan and have lower interest costs.
What term should my loan have?
With historically low-interest rates, one can say that longer terms are safer and more recommendable. But certain boundary conditions, such as the expected maturity of a life insurance policy, can play a role in choosing the right term.
What is the Land Charge (Grundschuld)?
A mortgage or land charge is a guarantee for the lender who can be registered in the land registry. Normally, their amount corresponds to the loan amount from the lender.
What are debit interest and effective interest?
The debit interest rate is simply the interest rate that the borrower has to pay on his loan each year. If there are any additional costs (such as account maintenance or provision fees), the lender must indicate the effective annual interest rate, which also includes these additional costs.
Now free consultation / Daten zur Finanzierung (Financal Data )
Our German lexicon for real estate financing is available to answer your questions regarding the technical terms. We are at your disposal if you should have any questions,
