Buying an apartment or a house is certainly one of the biggest decisions made in life. You usually tie yourself up for decades. Therefore, the financing of the dream home must be well planned and thought out from the beginning.
Own funds – The magic word in housing finance?
Yes, that's right. The question of how much equity is required is one of the most common questions about housing finance. In principle, the amount of own funds depends on the required loan amount and the credit rating/creditworthiness of the customer. As a rule, between 20 and 30% of own funds should be available.
In addition to the construction or. Purchase costs for their dream home fall between 10% and 15% utilities (z. B. Land transfer tax, contract preparation fee, land registration, etc.) that tend to be overlooked when calculating the amount of equity required.
Do the own funds have to be available in cash?
In addition to credit balances on accounts, savings books, home savings contracts u. a. also security deposits or real estate property. When a customer is in the fortunate position z. B. Having an additional building plot in a good location makes it much easier for us to obtain financing without having to borrow a lot of cash from our own resources.
If customers do not have access to additional assets, they can only be advised to start saving their own funds as early as possible. Here's how much their desire to own a home is worth to them. Might be willing to give up an extra vacation a year and put the money aside for equity instead? Or can you imagine doing without one of two cars and instead use public transport?
The Lebenstraumplaner helps you find out whether the amount of money you spend during your tenant life can already finance your own four walls.
What do I have to bear in mind when taking out a home loan?
Three main factors influence a loan and the amount of monthly repayments:
- Credit amount
- Loan interest
- Loan Term
The less money I have to borrow, the less I have to pay back, which is pretty simple.
The loan term determines the amount of the monthly loan installment. Long term, low monthly rate. This is also where loan interest rates come into play. The longer I pay back a loan, the more interest I pay in relation to it.
When comparing loan offers, it is therefore important to consider not only these three individual factors, but also the overall burden.
Fixed or variable interest rates?
As the name suggests, the interest rate on a fixed-rate loan is fixed from the outset and does not change over the term of the loan. With variable interest rates, your interest is adjusted upwards or downwards every three months in line with the key interest rate.
Here it depends on the customer's interest rate opinion. If I believe that interest rates will rise in the longer term, then the fixed-rate loan is a good choice for me. If, on the other hand, I believe in constant or falling interest rates, I will prefer a loan with variable interest rates.
There are also mixed forms where a loan z. B. for the first 10 years the interest rate is fixed and for the rest of the term the interest rate is variable.
The optimal financing is as personal as your individual dream home.
The set screws of your financing
Apart from the housing subsidies in the individual federal states, there are always different additional subsidies z. B. From renovation checks to craftsman bonuses. Your Raiffeisen housing advisor is always up to date on this and will check with you which subsidies you are eligible for and which requirements you must meet to qualify for them.
Get a quick and easy overview of how you would like to finance your dream home with our online calculator. You can carry out your calculations without any obligation using the Raiffesien financing calculator.
Raiffeisen housing bible
Get your Raiffeisen housing bible. Your guide to building, living and financing. At all Raiffeisenbank Im Rheintal branches. While supplies last.