The calculation of real estate financing depends on four main factors:
The interest rates for real estate financing are based on the yields of long-term bonds and mortgage bonds. The market interest rate for construction financing is typically about 0.5% higher than the yield of ten-year mortgage bonds. When demand for these mortgage bonds is high, yields and interest rates for real estate financing decrease. Conversely, yields and interest rates rise when demand for mortgage bonds decreases. Over several years, these differences can result in variations of several percentage points. The timing of real estate financing is, therefore, crucial in terms of costs.
Each lender weighs these and other factors according to internal guidelines and conditions, making the calculation of costs not always transparent for outsiders. With our real estate financing calculator, you can estimate the costs of real estate financing quite accurately. Give it a try!
To get the most affordable real estate loan, the following criteria must be met:
The amount of equity, i.e., how much you can directly pay for your property from your own resources, has a direct positive impact on the loan conditions. If you also have a stable income, have consistently met your previous payment obligations, and have no additional financial burdens apart from living expenses, the bank will view you as a reliable borrower and reward you with a lower interest rate for your planned construction financing or desired real estate loan.
While it is possible to finance the entire purchase price through a loan, with 100 percent or more of the purchase price being provided as credit, banks often charge up to one percent more in interest for such financing. Given the long terms of real estate loans, this can have a noticeable impact.
Comparison of Offers
Conditions for financing change regularly, so it's essential to regularly compare different providers. We can handle this for you - schedule a consultation appointment.Interest Calculator.
Optimization of Financing Structure
Apart from comparing various offers, the financing structure can offer the most significant potential for savings in a real estate loan. Let us provide you with advice - schedule a consultation appointment > consultation appointmen
To receive approval for real estate financing or construction financing, you need to provide the bank with numerous documents. These include personal documents about you and your financial situation, as well as information about the property itself. As the latter is usually provided by the seller of the house or the appointed real estate agent, you only need to take care of the personal documents. While missing important documents may not lead to a rejection of your application, it can cause delays in the approval process by the bank.
The most crucial document for obtaining the loan is, of course, the loan application, which we will fill out completely for you, and you will only need to sign it. To assess your creditworthiness, the bank also requires proof of income, typically in the form of salary statements, and often income tax assessments as well. In addition to income from your employment, you may also need to provide evidence of other sources of income, such as rental income from properties. When you apply for a loan through Finanzleuchte, you will receive a list of required documents.
For self-employed individuals, proving income for real estate financing can be more complex. Banks often require income tax assessments and declarations from the previous two years, as well as balance sheets, profit and loss statements, or income-surplus calculations. Additionally, self-employed individuals are often required to present a current business evaluation, which is usually prepared by an accountant.
If you plan to contribute equity to the financing of the property, you will need to provide evidence of this capital, such as bank statements, savings account statements, or investment account statements. Any payment obligations, such as existing loan contracts, also need to be disclosed and documented to the bank. Finally, the bank requires an identity proof, such as a personal identification document or passport.
To ensure that you submit all the necessary documents correctly and expedite the processing by the bank, it is best to consult the experienced financial experts at Finanzleuchte. If you have any questions about your loan, feel free to contact us. We will be glad to answer your questions and provide you with helpful advice.
If you want to finance your project through a favorable loan from KfW (Kreditanstalt für Wiederaufbau), you can consult our financial experts. Often, the KfW loan only represents part of the total loan amount needed for financing. Your financial expert will forward your KfW application to the bank, and you will receive the approval or rejection for the requested funding from the bank. The further processing of the loan, such as the disbursement of the loan amount and the repayment of the monthly installments, is handled by the selected financial institution – as an end customer, you have no direct interaction with KfW.
KfW funding is used in construction and real estate financing, as well as for energy-efficient renovation measures of a property. Applying for KfW funding is often a straightforward step towards your optimal financing solution.
There are three factors:
Finanzleuchte acts as an intermediary and finds the suitable construction financing for you by comparing offers from different banks. Since bank conditions regularly change, it is essential to have up-to-date comparisons of offers to achieve suitable loan conditions for you.
Finanzleuchte specializes in advising private construction financing and utilizes innovative algorithms to provide efficient services.
Large Number of Transactions
By taking over the customer advisory role for the banks, Finanzleuchte saves them time and effort. Since most customers who receive an offer from an institution after Finanzleuchte's advice actually accept that offer, cooperation with Finanzleuchte is beneficial for the banks. With relatively little effort, the volume of transactions for individual lenders increases. This collaboration has many advantages for the lenders, and it reflects in the conditions they offer to our customers.
We collaborate with over 450 lenders. These include primarily savings banks, cooperative banks, private banks, direct banks, and insurance companies.
Your data from the financing request will only be forwarded to the financing partner that we select after consulting with you. All our partners are bound by banking secrecy and have committed to using this information solely for the purpose of evaluating the current loan request.
Once we have received your request, your personal financing expert will get in touch with you. They will accompany you throughout the entire financing phase.
For your individual financing offer, we will need some documents from you to verify the information provided in your financing request. You can find the list of required documents in your customer area.
If you prefer to make your financing request in person, seek personal advice, or have any other questions, our financing specialists are available to assist you over the phone. Simply schedule a consultation appointment.
The faster the bank receives the complete documents, the quicker they can provide you with a financing approval. If you need a fast decision on your construction financing, please send us the documents as soon as possible after filling out the request (copies are sufficient). We will review them and then get in touch with you to clarify any further questions during a personal consultation.