In principle, everyone has the opportunity to obtain a mortgage. Naturally, the bank will assess your creditworthiness. This involves reviewing your income and expenses, including the planned new monthly payment. The bank will also check your credit history.

Here, the bank only checks whether previous contracts have been properly honored or if there have been any payment difficulties. Ultimately, the property itself is examined more closely. The bank appraises the property and checks whether this value is appropriate for the asking price.

The bank protects you from so-called usurious transactions. We would be happy to review these requirements in a consultation beforehand and issue you a buyer's certificate. You can easily apply for this online here and wait for our call back.

The disbursement time depends on several factors. Generally speaking, disbursement can occur once the disbursement requirements are met. However, it's generally advisable not to put yourself under time pressure when securing a mortgage, but rather to proceed step by step.

A loan extension is a classic refinancing option. The end of the fixed interest rate period is approaching, and you agree to a new interest rate agreement with the same bank.

Here you negotiate the interest rate, the monthly payment, and the loan term. We would be happy to prepare an offer for you and check whether other banks offer even more attractive interest rates.

In the case of construction financing, everyone has a special right of termination according to § 489 BGB who has concluded a construction financing with a fixed interest rate period of more than 10 years.

Right of termination:

The termination of loans with a fixed interest rate pursuant to Section 489 of the German Civil Code (BGB) begins 10 years after the loan was fully disbursed and a notice period of 6 months has been observed. If a new fixed interest rate agreement was concluded after the loan was disbursed, the date of the agreement replaces the date of disbursement.

Therefore, the loan can be terminated 10.5 years after disbursement or completion of the follow-up financing.

For example: Your loans were fully disbursed on January 29, 2007, therefore it is possible to terminate the existing fixed interest rate on January 29, 2017, effective July 29, 2017.

Your fixed interest rate agreement was signed by you on April 1, 2011; therefore, termination of the existing fixed interest rate agreement on April 1, 2021, is possible with effect from October 1, 2021.

Does this option apply to you? We would be happy to review your financing and advise you on this matter.

This refers to follow-up financing that is arranged early – usually 12-60 months before the actual end of the fixed interest period.

This allows you to lock in today's interest rates for a loan that doesn't mature until later. The lending bank protects itself against rising interest rates by charging a forward premium. The amount of this premium depends on how far in advance you want to lock in the interest rate.

We would be happy to take a closer look at your financing and make you an offer.

It's very simple: Just speak to one of our financing experts. They can tell you in advance what purchase price you can afford with your desired monthly payment!

There are sometimes significant differences from bank to bank. We work with over 500 product providers and always individually check which provider offers you the best terms!

However, the following documents are always required.

Creditworthiness documents:

• Copy of ID

• Last 3 payslips

• Proof of equity capital (if any is to be contributed)

Property documents:

• dimensioned floor plans

• Building plans

• Land register extract (not older than 3 months)

• Images of the interior & exterior

• List of existing and planned modernizations

• Living space calculation

• Construction plans / drawings

• Exposé (if available)

(Documents vary depending on the provider)

The following additional costs are incurred as a percentage of the purchase price when buying real estate:

• 2.00% notary fees

• 3.50 - 6.50% land acquisition costs*

• Possibly up to 4.76% brokerage fees

*depending on the federal state

Do you dream of living in your own home and no longer paying rent? Are you still looking for the right property, or would you prefer to fulfill this dream in a few years? Before things get too concrete, it makes sense to contact the bank to clarify some initial questions:

• How does construction financing work?

• What can I actually afford?

• What (additional) costs will I incur?

• Can I lock in today's low interest rates?

• How do I find the right object?

We work with several real estate agents and are happy to assist you in your search.

During our initial consultation, we will clarify all the questions mentioned above and any other concerns you may have. We will also gladly issue you a buyer's certificate so that you can be invited to the viewing appointment for your dream property.

Apply for a buyer's certificate now

Thanks to the buyer's certificate, you were able to meet with the real estate agent for a viewing appointment, and it was love at first sight? After you have agreed on the purchase price and determined any potential modernization costs, things get serious.

How do you apply for the loan, and more importantly, at which bank?

Because we work with several banks, we can always find the best offer for you. We will complete the application process with you. It is important that you bring all the documents the bank requires.

Which type or model and term best suits you? Fixed interest rates are possible for periods between 5 and 30 years.

Basically, there are two different types: the annuity loan and the fixed-rate loan. With an annuity loan, you pay a monthly installment consisting of interest and principal repayment. After the fixed interest period ends, there is a remaining balance that must be renegotiated at the then-current market interest rate.

With an interest-only loan, the monthly payment is split. You pay interest on the loan, and the principal repayment goes into a building savings contract. The loan amount remains constant. So why choose this option? Because after the fixed interest rate period ends, the building savings contract is allocated, and you can use it to finance the remaining debt. With a building savings contract, you lock in the loan interest rate at the time of signing, and these rates are currently very attractive. This eliminates interest rate risk. We would be happy to explain the differences, advantages, and disadvantages to you in a personal consultation.

Once the bank has reviewed all the documents we've gathered together, they will issue their loan commitment. Now the notary appointment can be scheduled and the lease on your current apartment terminated. The bank will send a lot of paperwork; we're happy to help you keep track of everything and go through it all with you.

The big day! It's official! At the notary appointment, the purchase agreement will be read aloud and signed jointly. You will receive a copy beforehand to review everything at your leisure. The most important details of the purchase agreement include: the purchase price and due date, current land registry information, and what happens in case of non-compliance. The bank will also give you a form to bring to the notary. This form is for the registration of the mortgage. This means that the bank is authorized to register a lien in the land register to secure the necessary financing for the property.

What happens next? The notary has obligations that must be fulfilled before the purchase price is due. The notary arranges for the preliminary registration of ownership and the entry in the land register for the bank. Important: the preliminary registration of ownership is only a preliminary registration; only upon payment of the purchase price is the previous owner removed from the register and you become the legal owner.

Once the notary has fulfilled their duties, they will declare the purchase price due. This means you must instruct the bank to disburse the amount according to this payment notice. Beforehand, you must meet all disbursement requirements. These could include, for example:

• Submission of the signed documents from the bank (loan agreement, confirmation of receipt, land charge purpose declaration, SEPA mandate, …)

• Priority registration of land charges

• Enforceable copy of the mortgage deed

• Payment request & due date notification

• For modernizations: Proof (invoices & photos)

• Proof of equity capital use

These conditions will be individually tailored to your needs. If all requirements are met, you can submit your payment request and the notary's payment due notice to the bank. With this payment, you will become the owner. Congratulations!

Now that you're the owner, you can pack your boxes and move into your dream home. Or is some modernization still needed? The bank will now also disburse the requested modernization funds – upon presentation of invoices or photos. Once your loan has been fully disbursed, the repayment phase begins. This means you will only now pay the full, agreed-upon monthly installment. Before that, you only pay pro-rata interest without any principal repayment.

Modernizations may become necessary long after you've moved in. There are certain types of loans that can help you with this. We would be happy to show you the options available.

Your fixed interest rate period is ending, so what now? It depends on the loan model you chose and the current market interest rate. With an annuity loan, a residual debt remains, and the loan term, interest rate, and monthly payment amount will be renegotiated at the then-current interest rate. With a fixed-rate loan, you still have the option of taking out a building society loan. In this case, you've already secured the interest rate and don't need to worry about it anymore. If you have a fixed interest rate period of more than 10 years, you have a special right of termination according to § 489 of the German Civil Code (BGB). This means that after 10 years of full disbursement, you can terminate the loan with six months' notice.

We would be happy to discuss with you whether this applies to your situation and consider together how the financing should proceed.

After a few years, you've done it. The loan is paid off. But what's next? You have the option of having the bank's entry in the land register removed. This incurs fees, including notary and land registry costs. But is removal necessary? If you want to sell the property, then yes. Otherwise, you can leave the land register entry in place and use it for future purposes, such as renovations or if you (or someone in your family) want to buy a property.

There are no disadvantages to the registration remaining in place. Even if you want to change banks, assigning the mortgage is still cheaper than deleting it from the old bank and registering it with the new one.

Interest rate risk

A mortgage typically lasts 25-35 years. Fixed interest rates can be agreed upon for periods of 5 to 30 years. The longer the term, the higher the interest rates. Therefore, many people use building society savings contracts to secure favorable interest rates, which can also be used for existing mortgages. We would be happy to show you the options.

Death of one of the borrowers

Probably the worst-case scenario. To protect your loved ones, term life insurance or whole life insurance is still the most sensible option. Even if you already have a mortgage, you can still secure your future. There are various life insurance models available; we would be happy to review which one best suits your individual circumstances.

Retirement age

As is well known, income is lower in retirement. To minimize the difference compared to previous income, it makes sense to find out about retirement savings options early on.

Occupational disability

What if an accident prevents you from continuing in your chosen profession? Even in this unfortunate eventuality, there are ways to protect yourself. We would be happy to provide you with a calculation of what these options might look like.

In good times and bad - you can count on us.

unemployment

Becoming unemployed is never good. Having to manage a mortgage on top of that, especially alone, only makes the situation worse. Unlike personal loans, mortgages don't offer the option of insuring yourself against this eventuality. Therefore, you should build up savings to bridge a potential 2-3 month gap. Important: As soon as you notice you might be experiencing payment difficulties, talk to your bank or contact us.

Family planning

A good topic to discuss during a consultation. Imagine taking out a loan with two incomes. But when a child arrives, one income is significantly reduced. It's crucial to ensure you can still afford the monthly payments. Adjusting the repayment rate during the loan term is possible, but this needs to be factored into the financing agreement from the outset.

We are available to answer any questions you may have.