How to finance your home cheaply?
Pay rent for a lifetime or prefer to move into your own four walls. More and more Austrians are opting for their own real estate, which they usually see as a pension. Your own house in the country is just as suitable for this dream as the modern-cut condominium near the city.
Finance your apartment
Probably one of the biggest mistakes consumers make when it comes to home loans is to calculate their financing on the wrong basis. Your first step should, therefore, be a comprehensive checkout – even before you consider possible options for housing finance.
So explore all of the costs and revenues closely and compare them. Once you have determined your budget per month, you can start choosing the right financing for your condominium or small house.
Tip: Use conservative credit. If additional money is available during the repayment phase of the loan, you can easily accelerate the repayment using special repayment. On the other hand, if there is a lack of money for the monthly installments, it can be expensive for you in the event of payment difficulties with repayment difficulties.
Today’s consumers have many options when it comes to real estate financing for their own homes. Modern housing finance offers you, as a borrower, a high degree of flexibility in many areas if you wish. From loan amount and term to special repayments to installment breaks, repayment-free periods and a free interest rate cap, you can design your contract almost freely.
Banks and savings banks in Austria offer standardized procedures for classic mortgage and annuity loans. Depending on personal creditworthiness and equity, individual types of financing can also be realized with a suitable interest rate.
Important for you as a property prospect: Before making a purchase, make a detailed home loan comparison and get personal advice from potential providers. This can also be done conveniently online with mortgage lending – using a credit calculator, chat or video conference, and of course traditionally on the phone.
Equity in real estate financing – there are many options
To finance a condominium solidly and cheaply, at least 20 percent should be available as equity – for many a considerable credit. In principle, this can be all savings (cash), but also, for example, fixed deposits or credit from building society contracts with a building society (youth building society).
In addition, state subsidies for housing subsidies can increase the equity ratio. For example, for particularly energetic construction or for young families. Since these grants are different, prospective buyers should investigate funding opportunities in advance at the relevant state authority.
Furthermore, there is, of course, the possibility of further reducing capital requirements through personal contributions, for example when expanding the apartment.
For young people, this can flow into the financing and significantly reduce the necessary credit, including security in the land register. The effective annual interest rate and monthly installment for the condominium decrease significantly. A possible forward loan for subsequent follow-up financing can also be lower.
Good creditworthiness: So there are many options in terms of equity with which you, as a borrower, can arrange the financing for your own apartment much cheaper.
Tip: The mortgage lending value is decisive for the amount of housing financing. This corresponds to a price that can actually be achieved when the property is sold. If the loan debt is higher than the mortgage lending value, banks require a risk premium or additional collateral is required in addition to the mortgage collateral – this applies throughout the repayment phase.
Credit comparison for your apartment
Modern home loan calculators offer you, as a future real estate buyer, the possibility of calculating the monthly loan rate and the net loan amount exactly in advance. In addition to the financing request itself, loans for home loans can also be taken out directly online. Only a few steps and details are required:
In addition to the reason for financing and the type of property, the purchase price, equity and location (city or postcode) of the property are decisive. In addition, the type of financing, additional costs, and your current employment relationship must be specified.
From the calculated net loan amount, the desired term and repayment rate as well as mortgage lending value and desired debit interest rate (variable interest rate or fixed entry interest rate), the financing calculator determines the sum of all installments and construction interest to be paid, including the interest rate. The calculator also shows you how much credit is left at the end of the borrowing period and, if necessary, has to be repaid with renewed follow-up financing.
This is done in a few moments and you can start your financing request with just a few more steps.
Tip: In the loan comparison, use the parameters to be specified to calculate several options for your home loan. So you can explore in peace which financing fits best in the budget or which you can afford at all.
Credit talk when buying an apartment
The most important thing when it comes to home financing is competent advice. In the event that you are satisfied with the offer of the bank’s residential loan, you should thoroughly review all loan conditions in a credit discussion – in the branch or online – before concluding the contract.
For this purpose, they are entitled to a sample offer from the bank, the content of which is specified in Austria according to the “Good Finance Investment Corporation” according to the Consumer Credit Act.
It clarifies the most important key points and terms of financing and offers you a precise overview of the interest rate, expenses and contractual conditions for the respective home loan right from the start of the mortgage. A decisive advantage.
Tip: Before signing the contract, you have the right to view a free binding draft credit contract with all the binding terms and conditions of the loan (demo version). You should definitely use this to carefully check all conditions and contractual clauses. Pay particular attention to the content of financing with other borrowers or a possible guarantor.
Finance your home with comparisons
- The household calculator: This calculator provides the basis for solid financial planning. Compare regular, predictable income and fixed expenses and explore the monthly budget for your loan.
- The Equity Calculator: Use this to calculate your available capital. What share should the financing contribute, where does the equity come from, what is left as a reserve?
- The repayment calculator: It calculates the interest portion and the remaining debt of the financing per month. This way you can explore your remaining debt amount exactly.
- The mortgage loan calculator: Now you can calculate your loan, compare all providers and conditions on the market, and request suitable offers without obligation.
Mortgage loans – cheaper than ever!
We compare up to 80 banks and building societies across Austria. In over 90% of inquiries, we create the most affordable financing for our customers.