Mortgage Credit Comparison 2019 – Mortgage, Construction Loan

 

 

A mortgage loan is also commonly referred to as a real estate loan and is a cheap loan to finance residential real estate such as land, house or condominium.

This is a classic home loan, in addition to the home loan as a form of financing for the realization of your own 4 walls. The real estate loan calculator combines various offers and is a helpful tool for comparing different providers. You can use a comparison calculator and rate-building tool to finance the following options.

Current Building Finance Get Offers – Free Consultation

Use the knowledge of the experts at Interhyp and get current offers for your individual construction interest Comparison 2019 for Austria with cheap mortgages Offers for your real estate loan!

Examples of financing:

  • condos
  • Houses for single families
  • Residential house for several families
  • Land

In the comparison calculator, indicate the amount of the purchase price or the value of the property, what additional costs you expect (thumb x Pi, typically 10% for brokers, taxes, contract fees, etc.) and what is the share of your own capital.

At the bottom of the form, you also specify the period in which you want to pay off the real estate loan and whether you also plan non-repayment years (parental leave, world travel, unemployment, etc.).

If you read through various offers, you will see in 2019 the following image about loans for real estate.

Current interest rates on mortgage loans – best

  • 1.0% bonus on a 6-month Euribor or 1.25% bonus on a 3-month Euribor in a variable range

fixed rate

  • 1.5% to 1.75% for the fixed rate for 10 years
  • fixed interest rate of 1.875% to 2.00% for 15 years
  • fixed interest rate of around 2.25% to 2.50% for 20 years

These offers are only available from banks, if the creditworthiness is correct and classified as very good. Any lower credit rating results in a higher cost burden.

deals

It is possible to contact the banks directly and request a loan from them.

You can also hire a broker for a loan to get the data, go through it with you, and send your loan application to multiple banks. For this service, the broker or broker receives a commission if successful (and only in case of success!). This fee is not paid by the customer, but by the bank.

Interhyp

Interhyp is now in Austria. In the Federal Republic of Germany, the company Interhyp is already a big deal.

The company was founded there in 1999, has since looked after 800,000 customers and in 2017 has completed financing of 20 billion euros.

And thus was an intermediary between borrowers and lenders. You can be proud of that. Now you want to be active in Austria and start here in autumn 2018.

The form at Interhyp asks which property is financed and what the purchase price is or how high your own funds are.

 

Note: If a broker or broker wants to get a down-front commission or tries to get money from you for mediation, then you run the risk of dealing with a questionable business partner. “Stay away!”.

How much equity do I need?

 

There is no generally correct answer, as the banks themselves have different specifications and also pay attention to the individual circumstances. A rough guideline is the lower limit of 20% or 30%. There is hardly any sense to go underneath.

For example, in 2018 different banks wanted different key figures when questioning a magazine. Bank Austria demanded 30%, while BAWAG PSK ran from 10% to 20% of total funding and even less.

It sounds very tempting to receive a few mortgage commitments. However, the higher the loan amount, the more you pay back. Or you pay higher monthly installments.

If the own funds are too small, it can make sense, if there is a co-borrower. Banks like to think about parents, but be careful, as co-borrowers you’re in the middle of a loan!

What is the maximum term of a real estate loan?

Until recently, the maximum term of a loan for a property was mostly 30 years. Now it comes to longer times. Some banks and building societies have a term of up to 35 years, in exceptional cases even 40 years.

What is real estate for 5 or 10 years, ask yourself. But it is a lot. First, look at the age at which you are considering real estate, and then get a loan.

Usually, this is the life phase of 30 to 40 years. In 30 years you are at the end of your career. What about the work? The rest creates a complex percentage effect that significantly increases the cost of borrowing. A small calculation example.

Loan amount: 200,000 euros

Interest rate for the entire term: nominal 3%

What are the interest payments?

  • Runtime over 20 years: ~ 120000 Euro
  • Duration over 25 years: ~ 150,000 euros
  • Term over 30 years: ~ 180 000 Euro
  • Term over 35 years: ~ 210 000 euros
  • Duration over 40 years: ~ 240 000 euros

As you can see, with each five-year increase in the loan amount of 200,000 euros, the amount increases by another 30,000 euros.

Current state of real estate loans

 

Nevertheless, the events of recent years are now on the agenda of the National Bank, which in turn causes concern, and this concern of the banks is over. Advice The Council is not taking too great risks, ie for customers, eg. B. have higher own funds or interest because it indicates an increased risk.

As a borrower, you need to make sure that you take out a loan at a fixed rate, because if lending rates rise again, this can lead to an unpleasant awakening.

With a fixed interest rate for a long time, you are sure that there are no surprises when changing the interest rate.

Mortgage loan since August 2018 in 7 Viennese banks

 

In 2018, AK Wien reviewed the value of mortgage loans at Vienna banks. The starting point was the need for a mortgage loan of 200,000 euros for a period of 25 years.

Comparing these 7 Viennese banks has generally shown that a lot is happening and it is important to compare the effective lending rates as there are several positions in which you can and should bargain so that the bottom line is the lowest possible loan rate.

Here are the results of the loan comparison:

Sufficient creditworthiness:

  • variable borrowing rates from 1.375 to 2.125%
  • Processing fee of 1 to 2%
  • The account maintenance fee for the quarter is 6.76 to 20 euros (the difference amounts to 1,324 euros for 25 years).
  • One-time expenses such. B. Estimated Property Value

Best creditworthiness:

  • variable borrowing rates from 1,125 to 1,500%
  • Processing fee of 1 to 2%
  • The account maintenance fee for the quarter is 6.76 to 20 euros (the difference amounts to 1,324 euros for 25 years).
  • One-time expenses such. B. Estimated Property Value

The result of the AK investigation

 

The difference in costs between different banks during the investigation in 2018 amounted to a loan amount of 200,000 euros with an impressive 20,000 euros! Banks have adjusted the conditions to different parameters, making them harder to compare. However, the effective interest rate and the total cost indicate transparently which is the most expensive loan at the end.

Foreign currency loans for real estate

What happened frequently in the 90s and 00s is no longer the case or, under certain conditions, a loan in foreign currency!

Due to low lending rates for the Swiss franc or yen, many home builders have borrowed in foreign currency, and at the latest with the financial crisis, there was a furious waking.

It was especially bad for those who had bullet loans. The exchange rate against the euro was in line with expectations and the repayment mechanism was not as expected.

Over the past decade, many banks have been calling for additional collateral, calling on borrowers to continuously repay the FW loan and other credit risk mitigation measures.

The Financial Market Authority called on banks to reduce existing foreign currency loans and to stop lending in foreign currency. Anyone who still wants to receive a foreign currency loan as a personal loan, will have difficulties or must meet many requirements for it to work.

What is a mortgage loan?

What is a mortgage loan?

A mortgage loan – often referred to as a mortgage loan or mortgage loan – is a classic real estate loan. In contrast to housing loans, installment loans or consumer loans, a mortgage loan is entered in the land register.

A mortgage loan (“mortgage loan”) is usually associated with the provision of a corresponding property, ie an apartment, a house or a land, which ensures the repayment and payment of interest in the event of default.

The bank thus has the option of entering into the land register a mortgage or collateral if the capital is insufficient to finance it.

This gives the bank additional security, because if you as a borrower do not meet your loan obligations, the bank has the option to use the down payment for repayment.

An entry in the land register is usually made up to an agreed loan amount, but can also be used for higher amounts, for example, for additional equipment or a subsequent extension of the property.

Of course, a mortgage loan – as with any home loan – will only be given to borrowers with sufficient creditworthiness. In addition to the earnings and financial conditions, the bank also examines the property to be financed – for example, in terms of location and construction, year of construction or equipment.

mortgage benefits

mortgage benefits

With the help of a mortgage loan, you can finance your house or apartment with relatively little capital. As a rule, banks need 20 percent of the capital value of the property, but sometimes full financing is also possible: Advantage: You can move into your property without having any capital stock. Disadvantage: Conditions, that is interest, for such a mortgage loan are usually much more expensive. This means you can afford more at home with less money. Or pay off the loan faster with free special payments.

Mortgage collateral (entry in the land register) provides the bank with additional collateral, which usually gives a mortgage loan a much greater financial freedom – and at lower interest rates than a conventional loan.

Mortgage loans are available at variable rates and as fixed rate loans.

How long a mortgage loan should or can be depends on the terms of personal finance and the amount of funding required. With historically low interest rates on mortgage loans, it is advisable to plan as long as possible – so you will have significant interest rates over decades.

If you finance with a variable interest rate over a long period of 20 to 30 years, you should pay attention to the possible interest rate increase over the entire term and include this in your financing. As a result, mortgage financing can quickly become a major imbalance.

Meanwhile, loans at a fixed rate also offer a term of 15 years or more. The advantage is that real estate loans are calculated very well in the long term.

With the provider comparison and the best real estate loan

With the provider comparison and the best real estate loan

Buying a house or apartment is one of the biggest investments in life. However, there are significant differences between the loan offers of individual banks, as the terms of the contract are often very different. Before you make a loan for real estate in Austria, you should definitely compare the market.

There are many factors that differ from bank to bank in terms of real estate loans. In any case, when comparing real estate loans, consider the following conditions:

  • Interest rate improvement (borrowing rate or effective interest rate?)
  • Reference interest rate (EURIBOR or others?)
  • Variable or fixed percentage
  • Hedging interest rates
  • The amount of additional costs (fees)
  • The possibility of a special repayment?
  • In addition to real estate loans, too
  • Life insurance (for the remaining debt)?

This immovable item informs you about everything you need to finance your real estate project. For example, many do not know that there are various design options in the form of various repayments. We recommend that you consider the complexity and the countless product options on a professional and objective side.

Financing options except bank loans

Financing options except bank loans

Despite the fact that mortgage lending is very tempting due to the recent changes in interest rates, other funding options should not be overlooked. In addition to financing from own resources, the housing subsidies of the respective federal states must be taken into account. In addition, it is possible to obtain a building loan from a building society. They are very different from mortgage loans of the banks.

2019 real estate loan in Austria

It pays to pay attention!

A real estate loan is usually a long-term, fixed-rate loan: As a borrower, you plan for years and are protected against surprises with a mortgage. If you receive a variable rate housing loan, keep in mind that the loan terms may change during the term. Even a minimal increase in the interest rate on a loan has a significant impact on the overall burden of a mortgage loan.

A mortgage loan incurs a variety of special expenses in addition to interest charges: service charges and estimated costs, the amount of the collateral, and additional insurance payments can quickly become an additional burden on the mortgage loan that you need to consider in your financing.

Special payments for real estate loans – Special repayment on construction loan in Austria

 

Therefore, before you issue a loan for the purchase of real estate, it is important to check whether the bank gives you the option of a special repayment. For special payments, the mortgage is very important. Why Thanks to a special redemption, you have the opportunity to pay back excess capital bonuses, bonuses, Christmas or holiday funds, etc., even large sums of money, to the bank at no special cost.

This reduces your loan and interest expenses and significantly shortens the term of your mortgages. The faster you repay your loan, the lower the risk of possible interest rate fluctuations that are always possible when using a variable mortgage.

And: the lower the residual burden at the end of the current financing, the lower your mortgage for subsequent financing. Today, you do not know what the interest rate will look like in 10, 15 or even 20 years.

Tips for loans

For most of us, a mortgage loan is a lifetime loan. Accordingly, you must be careful when negotiating a mortgage loan. Insist on a standard offer at the first consultation with your bank.

This “European Standard Information for Loans” is listed in accordance with the legal provisions for consumer credit in Austria. It explains the key points and terms of the financing and offers you at the beginning of the mortgage a detailed overview of the interest, costs and conditions of the corresponding mortgage loan.

Before you sign the contract, you have the right to familiarize yourself with the free, binding loan contract with all the mandatory loan terms. You must use this option to closely review all terms and conditions.

If you need or want to co-finance your mortgage loan with other borrowers, or if you need a guarantor to finance it, you should always clarify the conditions under which a person in charge may be exempted from the loan agreement.

The presentation of the interest rate dynamics is based on the interest rates of the condition offers offered by the product partners via the credit network during the selected period under a brokerage loan agreement. You will receive current interest rates for your individual real estate financing from your financial adviser.

Compare mortgage loans – it’s worth it

Compare mortgage loans - it

As with any other loan or mortgage loan, the same applies to a mortgage loan: tailor the terms, rates, benefits, and terms and conditions. Since a mortgage loan usually contains very large loan amounts, you should look very carefully here. Mortgage calculators compare the best mortgage offers in Austria.

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