Real estate purchase
Finanztest selects the best real estate loans with a long term and low interest rates
Finanztest checked cheap long-term loans.
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Anyone who chooses a real estate loan with a long term usually pays high interest. But Finanztest has done the math and recommends loans that are cheap despite a long commitment.
The Immobilienprise has not been a pleasure in the metropolitan areas for a long time. In the meantime, buyers are also targeting the suburbs and rural areas, and prices are picking up dramatically. And what about the pleasantly low interest rates so far? Could see a significant upward trend soon due to inflation. So there is some uncertainty in the market. The horror for security-conscious Häusle buyers.
Anyone who wants to have peace and quiet in the long term relies on long terms with the real estate loan. However, more than half of the total amount is usually not paid off when it comes to a follow-up loan. And this is where the buyers are faced with uncertainty. If you don’t want to expose yourself to this, you can rely on the full repayment loan. This means that the property is financed down to the last euro. However, banks can also pay for that: the loan is between 0.4 and 0.7 percent more expensive than one with a ten-year term, writes “Finanztest”. The experts have looked at real estate loans with a long term and check when these loans are worthwhile.
Equity and maturity have an impact on credit
As an example, the financial testers take a property buyer who wants to buy an apartment for 375,000 euros and needs a loan of 300,000 euros. The remaining sum plus the ancillary purchase costs are taken from equity. The higher the share of equity, the cheaper the loan will be. And the term also has an impact on the costs: if you can pay off your property quickly, you naturally save. In the example, the buyer wants to have his property paid off within 20 years. The monthly charge is then with the cheapest loan in the test at 1370 euros. If you can’t afford that, you have to extend the term – but then also accept higher interest rates. The test winner’s monthly charge for a 30-year term is 990 euros.
The quick payers can currently secure interest rates below one percent. The test winner for the 20-year term is Interhyp with 0.87 percent. Even with a term of 25 years, Interhyp is ahead and shares the top spot with Commerzbank. Here buyers pay 1.13 percent. With a 30-year term, it is also these two providers who can offer customers 1.16 percent. Regional providers with branches such as Volks- and Raiffeisenbanken or Sparkassen cannot offer such conditions. Here customers pay an average of 0.10 percent more.
Attention, big credit differences!
The financial testers warn borrowers with a term of 30 years: The differences are so great that in the end there is an interest rate difference of more than 100,000 euros between the cheapest and the most expensive offer.
The experts strongly advise comparing the offers carefully. Even if you have a local house bank, the offer should be carefully checked for real estate loans if horrific sums are not to be paid on top. And there is another tip: “Interest rates can change every day. Banks that offer top conditions today may be less cheap tomorrow,” write the financial testers. “Anyone who no longer receives the top conditions from our test should therefore obtain and compare several offers from brokers, banks and savings banks.”
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