Consumers who want to buy or build a property can save as much as € 65,000 by contrasting various options for real estate financing. This is the result of the current construction financing comparison 2017 of Stiftung Warentest. For the Finanztest magazine, more than 100 providers were checked for their terms.
According to Sparda Banken’s “Living in Germany 2017” study, consumers pay an average of € 242,000 to buy a property. Depending on the region, future homeowners will receive more, sometimes less square meters of living space. In Berlin, for example, it is 98 square meters, in rural areas more than 200 square meters.
Very few people on the high ridge have that much money for their own home. Fortunately, you can still finance your home with a loan on very favorable terms. However, it is important to obtain different offers for real estate financing. If borrowers go to an expensive provider, they pay up to € 65,000 more interest than the cheapest lender. This is shown by the current construction financing comparison 2017 by Stiftung Warentest (Finanztest 04/2017).
Up to 65,000 euros saved by the real estate financing comparison
The experts of Stiftung Warentest have obtained offers from more than 100 banks, intermediaries, insurers and building societies for five different financing options:
- Volltilgerdarlehen, where borrowers in 20 years or
- 25 years have fully repaid their loan
- Loans with 15 years fixed interest
- Real estate financing with KfW promotional loans
- Combined loans from a loan and a home savings contract
According to the construction financing comparison 2017, future homeowners who want to have their full loan paid off in 25 years save the most. Stiftung Warentest has determined an interest difference of 64,700 euros between the most expensive and the cheap provider. But even with the other financing options, the savings potential is great. This is between 14,500 euros and 58,000 euros.
Tip: Do not rely on the first real estate financing, but ask for more offers. Stiftung Warentest recommends at least three offers that you should seek to finance your own home.
Mortgage lending comparison 2017: Many cheap providers for homebuyers
The respective options for the construction financing were tested on the basis of different model cases. In the case of a property loan with a 15-year fixed interest rate, the purchase price is 400,000 euros and the required credit is 360,000 euros. The cheapest provider is Frankfurter Sparkasse with an effective interest rate of 1.67 percent. However, she works only regionally. Nationwide, Creditweb (1.77 percent) and 1822direkt, Comdirect Bank, CosmosDirekt, Volkswagen Bank, Commerzbank and Interhyp (all 1.86 percent) are convincing. For comparison, the most expensive provider in the test requires 2.96 percent interest.
The Volltilgerdarlehen with 20 years fixed interest, the real estate price is 250,000 euros, with 180,000 euros to be financed with a loan. According to the construction financing comparison 2017, Freie Finanzierer München (regionally active) and Hypovereinsbank offer the most attractive effective interest rate of 1.65 percent. It is followed by Enderlein and Planethyp (1.68 percent).
Santander Direkt Bank and Targobank can also convince if the same loan is to be paid off after 25 years. For all five providers, the interest rate for real estate financing is 1.88 percent.
Suppliers have become more flexible in home financing
According to the Construction Financing Settlement 2017, consumers can still get interested rates below 2% on a 20 or 25-year loan. Many providers have also become more flexible. This allows borrowers to change their loan installment almost anywhere and thus adjust it to new income levels. Even special repayments of up to five percent of the loan amount are now standard equipment, Stiftung Warentest notes. As before, the more equity borrowers bring to mortgage lending, the cheaper the interest rate. If this is 20 percent instead of 10 percent of the purchase or construction price, the effective interest rate decreases by 0.2 percentage points with a repayment of three percent.