Equity for buying a property
As a guideline, it is advisable to cover the ancillary purchase costs and an additional 20 per cent of the purchase price from your own funds. These may include, for example, bank balances, securities, building society savings or a plot of land that has already been paid for.
Depending on your income and assets, financing is also possible with less equity. For those with a very good credit rating, some banks will even finance the entire purchase price. However, this usually comes with a higher interest rate.
One of the key factors is the so-called loan-to-value ratio: the ratio between the loan amount and the property value as assessed by the bank. The more equity you contribute, the more favourable the interest rates tend to be.
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Documents required for a mortgage
When assessing a property loan application, the bank requires various documents relating to your personal details, your income, your assets and the property itself. Gathering these documents well in advance makes the process smoother and can save you valuable time. This can be crucial, particularly in a competitive property market such as Munich. - FinanzierungKaufen
How long should the fixed-rate period be?
A longer fixed-rate period offers planning security, whilst a shorter term may offer more favourable terms, depending on market conditions. Which option makes sense depends on your financial situation, the outstanding balance and your personal plans. - FinanzierungKaufen
Plan your follow-up financing in good time
When the fixed-rate period on your mortgage comes to an end, there is often still a balance outstanding. There are various options available to you for refinancing. Which option makes sense and when you should arrange it depends on your personal circumstances and interest rate trends. - FinanzierungAltbau
What is the best way to finance a renovation?
Whether it’s a renovation loan, a mortgage or government funding: the most suitable financing option depends on your income and assets. Whether you intend to live in the property yourself or let it out also plays an important role.
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