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Stand:updated on 13.04.2023 | Topic Consumer protection Property financing

If you wish to buy an apartment or build a house, we advise you to consider way in advance how you would finance such a project. It will often be necessary to take out a property loan for this purpose. With property loans, a fixed interest period is agreed in most cases. During this time, the borrower’s monthly instalment payments remain unchanged. The property serves as collateral for the bank. Amounts saved for the purpose of building or purchasing a home (Bausparen), which subject to certain conditions are government-sponsored, can serve as a basis for property financing at some future time.

Prop­er­ty loans at a glance

Living in your own four walls: for many consumers, buying a house or apartment is the biggest acquisition they are ever likely to make. Very few manage this without taking out a property loan. A property loan represents a major long-term commitment for the lender and the borrower.

More: Property loans at a glance …

Prop­er­ty loans: fol­low-up fi­nanc­ing and the po­ten­tial risks

In view of the development of interest rates for property financing, many consumers are currently worried about whether they will be able to continue paying for their property loans after the fixed interest period has expired. Here we explain, amongst other things, the problems that may arise if you need to take out follow-up financing for a property loan and what options you have after buying your own home and signing the loan agreement.

More: Property loans: follow-up financing and the potential risks …

Par­tial home re­ver­sion – what are the risks?

A partial home reversion lets you turn part of your home into cash without having to give it up completely. That sounds tempting! But this sort of transaction requires you to accept many disadvantages and uncertainties, many of which are difficult to recognise.

More: Partial home reversion – what are the risks? …

Sav­ing for the pur­pose of build­ing or pur­chas­ing a home

The concept of saving for the purpose of building or buying a home (Bausparen) is based on a combination of a savings plan and a property loan, the purpose of which is to finance the purchase or modernisation of a house or apartment. The interest rates on the savings deposits and the loan are fixed for the entire period.

More: Saving for the purpose of building or purchasing a home …

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