Construction financing: cheaper than ever before – Take out a loan now

For mortgage lending, it is currently cheaper than ever to get historical terms. The dream for many to afford a home or a condominium can currently be realized very well, because the interest on a building loan has been cheap for a few months like almost never before. Financing your own home is currently extremely worthwhile because a cheap loan is currently easy to get.


Low interest rates – a continuing trend?

interest rates - a continuing trend?

The Cream bank maintains a low key interest rate of 0.75%, as has been known for the past few days. Exactly this means that since the introduction of the euro, it has been cheaper than ever for banks to borrow money from the Cream bank. These favorable conditions are now being passed on to consumers in the form of home finance.

Cheap money for building a house is welcome among consumers – they should also opt for building finance as soon as possible, because the trend of favorable conditions for building finance can also tip over again. That is when Germany hits the recession and investors in Germany no longer see the current security in their investments. Despite the debt crisis, Germany is currently on the podium of European countries in terms of economic development. German bonds and Pfandbriefe are safe investments that guarantee good mortgage rates.

Experts expect, however, that Germany’s economic situation will also be affected by the debt crisis. As a result, this would also result in a rising interest rate for home finance and loans.


Historically low conditions

construction loan

Such low interest rates for a building loan, even over 15 or 20 years, are almost historical and must clearly be seen as an opportunity for building finance. The circumstances of termination for borrowers speak even more for the current commitment to mortgage lending. After only 10 years, the borrower can cancel all or part of his mortgage with a six-month notice period. This is an immense advantage for building owners, because they can avoid high interest rates for their home financing.

Despite the temptation of low interest rates and favorable conditions for building finance, you shouldn’t put on pink glasses and let yourself drift on the wave of blind euphoria. Rather, it is still necessary to calculate exactly which mortgage lending is best for the individual borrower. The only thing is that one should give priority to one’s own home financing project, since the certainty about the trend of low interest rates is not exactly that: certain.

Astro Finance closely follows the trends and correlations between business and finance and currently offers a top interest in mortgage lending. By working with various institutes, companies and various providers, we are happy to offer you your individual advice, inform you about trends or warnings and how you can best achieve your dream of owning a home.

Advantages of immediate financing – quick credit

The term “immediately” alone denotes something that happens quickly and happens immediately. In many cases, this is advantageous in itself, because in our fast-moving times everything has to go quickly anyway. This means that instant financing is part of many of the amenities that the Internet has brought with it. Most of the time, consumers only really become aware of the advantages of instant financing if they compare the instant financing with a loan offer from their house bank.

Apply for the loan from a direct bank

Apply for the loan from a direct bank

Consumers with an Internet connection and a PC or smartphone can now forward their financing requests to a bank around the clock, 365 days a year. You do not have to make an appointment with the bank, do not engage in a consultation and do not take any extra time for it, but the loan application can be made today whenever there is time and opportunity. In addition, the second advantage is noticeable, because the conditions for immediate financing are generally more favorable than the conditions for a loan from the house bank.

The reason for this is simply that the direct banks work with completely different personnel structures. There are no expensive branches here, and most of the cost advantages are passed on directly to customers, so that less interest and fees then have to be paid for immediate financing. It is not only the case that immediate financing is easier to apply for, but that the borrower can also save a lot of money by comparing various bank offers.

Experience over a number of years makes it clear that the best instant financing is available from direct banks. If you can do without personal advice on your loan, you should apply for the instant loan at one of the cheap direct banks and then save money when you go into debt.

Immediate financing is processed quickly

Immediate financing is processed quickly

The Internet and standardized banking products also make it possible to automatically process credit requests from customers who are placed online. As a rule, the credit decision is made within a few minutes. The quick decision has the advantage for the borrower that he knows immediately where he is and can plan accordingly. However, any credit decision made based on the customer’s unaudited information is only preliminary. Only when the signed contract documents are received by the bank and all information is checked by competent loan officers and found to be correct, is the instant loan paid out.

Therefore, the forms should be filled with meticulous care. Correct information on income, rent, existing installment obligations and marital status are very important. If everything goes smoothly, borrowers can assume that the money from their immediate financing will be available in their checking account within five to seven working days.

Immediate financing can be compared well

Immediate financing can be compared well

Due to the large number of offers, which can be compared very quickly with regard to their conditions via a free credit comparison, every consumer can easily find instant financing that fits his ideas and needs and is still extremely cheap. A qualified credit comparison can easily save a few hundred USD in borrowing costs.

Make use of the advantages of instant financing in the future and use the Internet to apply for a loan. You not only save the cumbersome journey to the house bank and thus time, but also money if you take out immediate financing at the best conditions.

Finance condominium with annuity loan

The dream of having your own four walls does not stand in the way of well-considered financing. For many, having their own four walls is the ideal idea for their lives. A condominium is not only a concern for those who live in rent that they would like to meet. As a retirement provision, the condominium can make a large contribution to enjoying retirement. If there are no more children in the house, an apartment offers enough space to develop freely. But a condominium is not only worth considering as a retirement provision, it is also a good investment opportunity to skim off returns. Condominiums as an investment, generally real estate, are known to be among the safest investments, even in times of crisis.


Condominium as an investment

Condominium loan

However, it is not so easy to use a condominium for capital investment. At first glance, one overlooks an important aspect: Although you first see the rental income that flows from the system into your wallet, the expenses for the apartment are often underestimated. Generally speaking, one could say that a condominium is still cheaper than buying a house, but even with a condominium you can expect financing costs of 100,000 dollars or more. Of course, the price depends largely on the size and location of the apartment, but you also have to consider what is more profitable in terms of size and location.

For the financing of the condominium, many will have to take out a loan that they will have to take out. You will only make a real return when this loan is paid off, because the installments you pay for the loan, plus interest, will initially exceed the rental income. This could be a small losing streak on the way to financing the condominium. However, once this has been overcome, nothing stands in the way of the profit from the rental income. Of course, you also have to consider that new obligations come up if you suddenly become a landlord – so here you should also inform them exactly!


What is the best way to finance the condominium?

What is the best way to finance the condominium?

For the pre-financing of the condominium, it is also necessary to compare if you want to find the cheapest possible financing. In general, however, there are financings that are better and those that are less suitable for financing the condominium. Annuity loans or fixed-rate loans offer good financing options here.


Financing with an annuity loan

Financing with an annuity loan

An annuity loan has the advantage over a repayment loan that the installments that have to be repaid remain the same over the entire term of the financing, provided that a corresponding fixed interest period has been set. The installments to be paid are made up as follows: One part of the installment is a repayment part with which the credit debt is reduced and a second part which corresponds to an interest. The interest rate to be paid is agreed upon conclusion. With annuity loans, it is advised to pay 1 percent of the amount to be repaid in the first year.


Financing with a fixed loan

fixed loan

A fixed loan is also called a maturity loan or a maturity loan. As the names suggest, the loan amount to be repaid is only repaid at the end of the term. The term can also be variable, and the fixed loan can also be canceled. During the term of the fixed loan, you only pay interest on the loan. At the end of the term, the loan is usually repaid with a building society contract or life insurance.

To finance the condominium, it is common to choose an annuity loan or a fixed loan, but here, too, a comparison is necessary so as not to fall into a debt trap – in particular the effective interest rate of the individual offers should be taken into account, then the financing of the condominium actually stands nothing more in the way.

Loan financing without equity

Not many people know that you can secure your own home without equity! In addition, a change is beginning to occur in the area of ​​home finance, namely towards home finance without a bank.

More information on mortgage lending without a bank:


Building finance without a bank

Building finance without a bank

When it comes to owning a home and you want to call a house your own, there are a lot of things to do because, as you know, real estate is not exactly cheap, so it can be financed quickly from a tea tin. Most of the time, financing fails because of equity capital, which is often not available. If you still try to get a loan from the bank for a construction project or the purchase of a property, they will tell you that this is not possible due to the low equity ratio for financing your home. Real estate financing is advised to finance 20 if not 30% of the total costs yourself, ie from equity.

If you take a look at other countries, you will also find other customs regarding methods of financing there. Often, no equity is required for financing abroad. The equity ratio in Germany is only meant well, because not only the banks have a certain amount of financing security, but you as a borrower also protect yourself against over-indebtedness, so that the home does not become a financial trap. But more and more banks in Germany are also offering financing without equity.


Creditworthiness instead of equity

Creditworthiness instead of equity

Financing without equity – where is the collateral for the bank? Simply put: in the creditworthiness of the borrower. So it is not so important to the banks how much money you can pull out of the tea box, but whether you have a safe job and how much you earn from it. However, the credit rating has to match, otherwise financing without equity is not possible.


How high must the credit rating be?

How high must the credit rating be?

This is a good question, which unfortunately cannot be answered across the board – but you know a little about a bank’s thoughts when financing without equity. If you apply for financing without equity, the bank will check whether you are eligible for such financing. The bank prepares a household bill. This means that the income is offset against the expenses of your household. The bottom line is a number that assesses whether you still have money to live and how much you could potentially spare to repay the loan. If the bank decides that there is enough money in your household, there is actually nothing standing in the way of financing without equity. So the income should definitely be above average. In addition, your job should be permanent.

This financing without equity is currently not available behind every bank counter, but can usually only be obtained through special financial intermediaries who work with selected banks. It is also worth knowing when financing without equity that the costs here are somewhat higher than with conventional financing with equity. Of course, this is often a matter of how skillful you are at negotiating.