FINANCING

Is the topic of construction financing still unfamiliar to you, but you’re now planning to buy a property or build a new home? We’re here to help. What exactly is construction financing? What really matters? How do you find the best construction loan?
With us, you’ll receive personalized advice – even beyond the loan agreement – and a free property valuation at the start of your investment.

Construction financing is a specific type of loan. When building a new property, the lender supports the process through multiple partial disbursements of the loan amount and monitors the construction progress. In contrast, when purchasing an existing property (a so-called existing property), the lender pays out the agreed sum in one lump sum.

Construction financing is also referred to as a construction loan, housing loan, mortgage loan, or real estate loan. In all cases, it’s about borrowing money to build or purchase living space.

Just as there are many different types of housing, there are also various forms of real estate financing. Below, we explain some of the most common options for construction financing.

When building a new home, you’ll face more than just the costs of construction itself. Additional expenses such as land development, notary fees, building permits, and more will also arise. These are commonly referred to as “ancillary construction costs.”

But don’t panic – and don’t let it overwhelm you. We know the process inside and out. We keep track of all costs as well as all possible funding opportunities to help you develop a solid and transparent financing plan, ensuring there are no unpleasant surprises.

When purchasing an apartment or a house, the costs may seem more straightforward—but it’s still wise to involve experienced experts. You’ll likely want to renovate or carry out partial refurbishments to personalize your living space and make it more efficient.

Usually, you should have 20 percent of the purchase price available yourself. This rule is overturned with 100% financing. Thanks to historically low interest rates, we enable you to move into your own home even without this amount.

With 110% financing and the currently low interest rates on the market, you can also cover the additional acquisition costs. We provide you with thorough advice and inform you neutrally and independently about the opportunities and risks of this type of financing.

With 130% financing, the costs for building or purchasing a property, the additional construction-related expenses, and possible renovations or even necessary fittings—such as a kitchen—are covered. We are happy to advise you whether a 130% financing option would be suitable for your situation.

If you want to continue your loan with a new bank, get in touch with us. Benefit from refinancing by securing lower interest rates, shorter terms, or reduced monthly payment obligations.

If your fixed interest period is ending and you need subsequent financing, a prolongation allows you as the borrower to decide to continue your construction loan with your current bank. We are happy to negotiate with your existing bank and arrange the follow-up financing, including options for special repayments, adjusted repayment rates, or shorter terms.

Many banks hesitate to grant loans to self-employed individuals. Even as a self-employed person or freelancer, we can provide you with construction loans and tailor a real estate financing plan that fits your needs and life situation.

• A bank operates across multiple business areas, one of which is lending money for the purchase of residential property.
• A loan broker is an independent intermediary who arranges loans and receives a commission from the bank for this service.
• A mortgage lender specializes in brokering real estate loans. They are independent and receive a commission from the respective lending institution.

As a borrower, you do not incur any additional costs. The mortgage lender is paid exclusively through commissions from the bank, which they receive upon the conclusion of a loan. These commissions have no impact on the cost of your loan. Since many banks no longer maintain their own departments for mortgage financing, they save corresponding expenses in this area.

For the banks, this means no advertising or closing costs. The mortgage lender also takes over the credit check and the preparation or review of all necessary documents on behalf of the bank. The banks pass these savings on to the mortgage lender in the form of a commission.

Many clients have a very trusting relationship with their local bank but still choose to arrange their mortgage financing through us—and have successfully moved into their own home that way. Unlike your local bank, we have a much wider selection of loan products to find the one that best fits your needs.

Additionally, Stiftung Warentest points out that many banks do not sufficiently consider the government funding and loan programs offered by KfW. As a result, they often fail to actively offer these subsidies or inform customers about additional funding opportunities.

Our mortgage financing service creates a tailored financing plan for your property and finds a loan that perfectly matches your individual needs. We consider not only your current financial situation but also think ahead to your future, taking your life plans into account from the start.

We take the time for you and want you to feel comfortable and confident with the loan you choose.

There are many mortgage advisors out there. But how can you, as a borrower, recognize a reliable, solid, and trustworthy mortgage advisor?

Read here what, in our opinion, you should expect an experienced and honest mortgage advisor to ask you.

To assess how much you can afford, it’s important to evaluate your income situation. This assessment directly impacts the loan installments and repayment rates you can ultimately manage.

This also means you and your mortgage advisor should consider how your salary situation might change in the future. Are you expecting a job change or promotion? Do you regularly receive bonuses? Are you planning to have children, which might lead to a temporary loss of income?

No one wants to scare you, but a precise overview of all conditions and costs is necessary to avoid unpleasant surprises. If you plan to build a new home, there are more cost factors than when buying an existing property. Some costs apply to all buyers equally, such as property transfer tax, notary fees, and land registry costs.

Your mortgage advisor should be able to explain all these cost points clearly and understandably. Here is a checklist of the cost items a mortgage advisor should outline for a new build.

The question of equity capital influences the determination of your financing needs. How much money do you have available? Are there investments that can be used for the house construction or property purchase? Can you offer insurance policies as collateral? Are there amounts that will be available to you at a specific time, for example from a life insurance policy? All these factors are taken into account when searching for the right financing solution.

The Kreditanstalt für Wiederaufbau (KfW) offers an almost unbelievable variety of subsidies and low-interest loan programs, especially for laypeople. Most people are unaware that the government can support them when creating new living space or renovating an existing property to be energy-efficient and barrier-free. Take advantage of KfW programs with low interest rates or grants through us.

Will you still be working at age 65, or do you want to travel the world then? The question remains how flexible you want to be in your retirement. Is the argument “you still have to pay rent in retirement” important to you, or do you want to have your housing situation settled by then? We advise you on which loan term fits you best and suits your needs the most.

If you have a Riester contract or a building savings contract, it’s worth reviewing these agreements to see if they can be effectively used in your financing plan. The advantages and disadvantages will, of course, be explained to you by the mortgage advisor.

Do you want to pay off the loan as quickly as possible, or is having maximum flexibility despite monthly repayments more important to you? Are you able to save throughout the year and make special repayments? All of these aspects should be considered when structuring your financing.

A comprehensive and solid consultation also includes discussing risks. If you want to commit to a loan with a short-term interest rate lock, you need to consider the risk that interest rates may rise, making future financing more expensive.

Your mortgage advisor should also analyze the personal financial risks you take on when buying or building a property.

Additionally, a detailed location analysis is essential — something we are happy to prepare for you. If you ever want to sell your property, the location plays a crucial role in its value development.

For most people, a property is the biggest expense of their life. Therefore, financing should be reliable and secure. Finding the right financing can make many people very anxious. But it doesn’t have to!

We find the financing that lets you sleep peacefully at night and still leaves plenty of room for your life to unfold. We find exactly the loan that fits you and your possibilities.

Stiftung Warentest warns that many homebuyers lose money because they do not use government housing subsidies—or use them insufficiently. So be smart and leave the search to our experts. We provide comprehensive advice on funding programs from the KfW (Kreditanstalt für Wiederaufbau) and how you can make the best use of them.

The consumer testers also conclude that you can save a lot of time and effort by hiring a loan broker.

Whether it’s about the initial financing of your property, follow-up financing, or a renovation loan: We are the experienced specialists by your side!

• Call and schedule an appointment

• Gather all necessary documents (we’ll help you make sure nothing is forgotten)

• Prepare for the conversation and be clear about what you want and what matters to you: (What should life look like? Children—yes or no? What is important to you in retirement?)