Building financing forms with top building rates. Find out on our website about the forms of home finance Reconstruction Credit Institute loans, cap loans and combi loans.
Our tip: The interest calculator will find you the best offers in the area of home finance with top construction interest, conveniently on the Internet, without obligation and free of charge.
Secure mortgage lending thanks to cap loans
One form of mortgage lending that enables flexible repayments and offers secure building rates is the cap loan. It is equipped with a variable interest rate, which, however, cannot exceed a contractually defined cap, the so-called cap (the English term means “interest cap”). Cap loans thus guaranteed a particularly high level of security for building finance.
The cap loan is particularly cheap when interest rates are low. Borrowers can then benefit directly from the positive interest market developments.
If you refuse other forms of mortgage loan, for example because you’re afraid of rising interest rates, the cap loan is a perfect alternative. Benefit from the low building rates and avoid a sharp rise in interest rates at the same time.
In contrast to other forms of loan, a cap loan is not fixed for a long time, but is adjusted every three months to the current money market interest rate EURIBOR (the abbreviation stands for European Interbank Offered Rate). The EURIBOR is the interest rate at which European banks borrow money from each other. It is based on the key interest rate of the SaveBoost Bank.
Not only should the construction interest of a building loan be chosen favorably, you can also get the best possible construction financing through the special campaigns of various lenders as well as through Reconstruction Credit Institut grants.
We briefly present both variants to you:
The Reconstruction Credit Institute grants low-interest loans to enable various projects in the area of private real estate, whereby both real estate acquisition and new construction are promoted. If you would like to use a low-interest loan for your construction finance, you should have your lender check whether you meet the eligibility requirements. If the requirements match your construction plans, you can have your bank integrate the loan into your construction financing and do not have to apply to Reconstruction Credit Institut yourself.
The combi loan combines flexibility and security
Do you want the highest possible level of security for your building finance, but at the same time don’t want to forego flexibility? Then you should consider a combination loan, it combines security and flexibility.
Construction financing with combination loans works as follows: A classic annuity loan, which is characterized by fixed installments, is combined with a special repayment loan, which has flexible installments.
With a combi loan, you can benefit from low building interest on your building finance, but at the same time leave yourself the opportunity to make a special repayment. A special repayment is associated with surcharges for other forms of mortgage lending, as many banks require interest surcharges for long-term conditions, but is free of charge for mortgage lending with combination loans.
Compare building rates – savings tip on follow-up financing
Follow-up financing is possible without a lot of fuss, and a good offer can save up to several thousand euros. If you started your mortgage lending a few years ago and now want to extend your loan, you should not immediately accept the first offer from your house bank.
Even if your fixed interest rate only ends in up to 60 months, you can secure the current interest rate level today for later. This is made possible by a so-called forward loan. This classic annuity loan is very advantageous due to its special agreement: you already conclude the loan contract now, but the payments in installments and installments only start at a future point in time, which you can arrange individually with your bank. The best: You don’t have to pay a single cent extra for the special arrangement!
If the interest rate situation is particularly favorable, you should not hesitate and arrange follow-up financing with your bank as soon as possible. You can save up to 0.45 percent with a forward loan where follow-up financing starts in up to three years!