Real Estate Security Loan application and requirements

Start your inquiry here without obligation and free of charge

Start your inquiry here without obligation and free of charge

Do you need a loan for a larger project? A loan with real estate security would be particularly low-interest.

We want you to discover the loan offer that is tailor-made for you. You can obtain information about this from us on publicly funded loans, loan offers without a land register and loan alternatives for “fresh” property owners.

Real estate loan – credit through real assets

Real estate loan - credit through real assets

The creditworthiness for lending is a decisive factor in determining the interest rate at which loans are granted. When it comes to real estate security loans, personal creditworthiness comes together through secure income and real credit protection. Large amounts of credit can be approved through the overall credit security, which can be classified as excellent, up to the limit of the full financing of the material value used.

If the loan is required to purchase the property, several values ​​are used as “markers” for the expected interest offers. Loan providers approve the cheapest interest rate for loans that are primarily secured in the land register. Borrowers can even have serious hopes for a mortgage loan below 1.0 percent APR. Such offers are given to borrowers who primarily finance less than 60 percent of the loan value.

The less equity there is to purchase or build, the higher the interest rate. Up to about 80 percent of the mortgage lending value, the property is considered “solidly” financed. With less than 20 percent equity, finding a loan to buy real estate becomes a game of chance. Theoretically, full financing can work if the income is sufficiently high and secure, but credit institutions tend to react negatively.

In addition to the traditional financing of owner-occupied residential property, through the loan from the mortgage bank, Credit lender offers a promotional loan. Up to 50,000 USD at the annual percentage rate of 0.80 percent would be eligible for annuity loans. The term is likely to be up to a maximum of 35 years. The loan with real estate security could be combined with other promotional loans from Credit lender, such as energy-efficient refurbishment.

Home renovation loan – public loan support

Home renovation loan - public loan support

The focus of publicly funded loans is the energy-efficient renovation of older properties. The owners’ investment wishes range from roofs to windows and external walls to new heating. The loan programs 151 and 152 of the Kreditanstalt für Wiederaufbau offer energy-efficient renovation requests at reduced interest rates. A funding loan could be applied for up to a maximum of USD 100,000 per residential unit.

An interest rate of 0.75 percent APR would currently be set for the first 10 years of the term. Credit lender then offers follow-up financing in 10 year increments. The maximum loan application for real estate security is likely to be for 30 years. Credit lender distributes an additional “little candy” through repayment-free years. How many years of repayment-free start-up time could be granted is determined by the total duration. Up to a maximum of 5 years would be possible.

The repayment subsidies are far more interesting than paying off with a delay. Those who implement the offer for energy-efficient renovation can get up to 27.5 percent for repayment “in addition”. Program 430 – Investment Grant opens the alternative, with up to 30,000 USD in free money. At the same interest rate and similar conditions, the living space should also be remodeled in line with age.

Loan without land register – renovate to your heart’s content

Loan without land register - renovate to your heart

Publicly funded credit is strictly tied to the purpose and at the same time to many requirements. Even the lack of opportunities to save through your own contribution can increase the volume of the promotional loan so that owners are looking for alternatives. Only the material costs count for the experienced handyman. Instead of the expensive energy consultant, a heating system could even charge a primary school pupil if he only followed a good Internet advisor.

To insulate external walls, no one needs a high school diploma. Muscle strength is more needed for excavation than “brain fat”. Free personal contribution helps to save a lot more than a real estate loan without a land register costs additional. Direct banks offer financing well below 3 percent APR. On top of that, this funding is earmarked, but much more flexible.

If the money flows directly or indirectly into home ownership, you can use it to pay for everything that the property owner imagines to be project-related. If he wants to renovate a wall, he can of course also provide extensive insulation at the same time. If only new facade paint is to be applied, it would also be ok. The room for maneuver extends to new furniture for the newly renovated apartment, despite the earmarking.

Real estate loan – credit brokers make sense?

Real estate loan - credit brokers make sense?

With every real estate financing, large sums are moved and repaid over a long period of time. With the annual percentage rate, a small difference in the interest rate can later be worth several thousand USD. It can also be very useful for a loan with real estate security to combine different financial products. Did you know, for example, that the Credit lender Kredit 151 mentioned above may even be 0.50 percent?

You may not have known it, but a credit broker knows combinations of credit where this discount can be obtained by waiving commission from the commercial bank. It is also not uncommon for builders to calculate too tightly. In this case, additional funding could save the project. Obtaining additional financing as a “freshly baked” owner is not always easy. Reputable credit brokerage helps to solve such problems.

Finally, a tip that many property owners don’t even think about when they are young. When you retire, the paid house is not just a guarantee of a safe roof over your head. Loan with real estate security at retirement age is the easiest solution to always have sufficient liquidity room despite a small pension.