A tailor-made loan
In Germany there are numerous types of loans. We have listed the most important ones for you below.
4 species explained
Loan Types - 1. Annuity Loan
The annuity loan is a common form of loan in Germany. The annuity, i.e. the monthly installment, consists of an interest and a repayment component, which means that the loan is paid off evenly. Interest is only calculated on the outstanding amount, which means that over time the principal increases and the interest payments decrease. As a rule, the debit interest is fixed for 10 or 15 years, which offers a high level of planning security during the fixed interest period. You know your monthly rate and the remaining debt at the end of the term.
There is a risk that one acts imprudently under the influence of various comparison portals. Although it seems possible to make a quick and easy comparison across different providers, experience shows that this is difficult in practice. Our consultants will personally show you different options and allow you to compare specific offers tailored to your needs.
Loan Types - 2. Constant loan
Constant loans can have different variants depending on the design. However, the main goal is always to set the conditions for the entire term at the time of conclusion. This is a two-part agreement, consisting of a loan and a home savings contract. At the beginning, the final loan is paid out, for which only the interest is due during the term. At the same time, monthly payments are made into a home savings contract. When it is allocated, the home savings sum is used to redeem the first loan, after which the repayment of the home savings loan begins. The interest rate and the rate for the entire term are fixed from the start.
Types of loans - 3. Combination loan
The combination loan is a hybrid form of loan that consists of a fixed-interest loan and a variable special repayment loan. This combination makes it possible to make additional special repayments at any time while the monthly rate remains fixed. In practice, there are numerous variants of this type of loan.
Types of Loans - 4. Variable Loans
Adjustable rate loans are loans where the borrowing rate is usually reset every three months. The variable interest rate is usually based on the current money market interest rate. To offset the risk of rising interest rates, most banks offer extensive special repayment options and short-term notice periods. In addition, a change to a loan with a fixed interest rate can be made possible by the conversion right. In special forms, the interest rate risk can be limited from a certain value by a so-called cap. We will be happy to help you find the right loan for you and advise you individually. Convince yourself and test us!
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