Which loan is best for a building project?
The best way to calculate loans is to choose a fixed rate. After the key interest rate has already reached a historic low of 0.00% and interest rates have never been as low as before, this is also highly recommended with regard to the future. If the banking system recovers faster than expected, borrowers will benefit from a low-interest rate in the long term. Loans from 2% interest are quite possible, on average the Austrian loan interest is currently 3%. In view of rising rents and purchase prices, some of which are in double digits in metropolitan areas such as Vienna, Salzburg or Tyrol, the purchase of a property is certainly a sensible investment. Rents are almost the same as the monthly loan installments. The loan calculator also proves this.
Which bank is the right one for a home loan?
In Austria, those who want to take out a loan still prefer to contact their house bank. Even if long-term customers like to be offered better conditions, a comparison with the loan calculator is still worthwhile, as sometimes even better framework conditions are possible at a new bank. In general, however, a traditional bank is preferable to a direct bank. Direct banks offer very good conditions for saving, whereas the conditions for a loan are rather bad. At an average of 4.5%, interest rates are significantly higher than at a branch bank. This is mostly because direct banks require less collateral or equity. In addition, there is no personal advice, which is absolutely necessary for such a large financing project.
If you only want to build in a few years, a home savings contract with the prospect of a home loan is recommended. Even if interest rates on other loans are currently very cheap, they may rise again in the future. Those for home loan loans will then also increase, but they are still cheaper in comparison. In addition to a fixed interest phase, which protects against a further drop in interest rates, there is a government premium of up to $ 1,200 per year. There are currently no comparable offers in banking. A great advantage of this form of savings is that the savings calculator can not only calculate the amount of the total savings but that the customer can also determine how high the loan amount can be.
What needs to be considered with a loan calculator?
If you are looking for a cheap loan, you first have to find the needle in the haystack of the various interest rates. For comparison, the same interest, namely the effective interest and not the debit interest, must be taken into account. The effective interest rate includes all fees to be paid and is, therefore, the amount that the borrower actually has to pay.
What are the requirements for a loan?
When a loan is used to build or buy a property, most Austrian banks require equity of at least 20% of the total. If there is no equity ratio, interest rates are correspondingly higher and the general conditions are worse. In addition, other collateral, such as nick carraway ownership, a precise breakdown of income and expenses, proof of income, etc., is required. The bank also automatically obtains information about creditworthiness from the Austrian Credit Protection Association. This credit check is also a useful facility for the borrower himself to have the resilience professionally determined.
Which steps follow the calculation by the loan calculator for a house?
The loan calculator already gives a good overview of the best financing options, but the individual offers still have to be checked carefully. This includes making personal contact, in which the contractual conditions, such as the margin, collection fees or processing fees, are clarified and the general conditions, such as the duration, the possibility of follow-up financing or pause, etc. are discussed.
Make the decision for an annuity loan with the loan calculator
Borrowers can choose between an annuity loan and a repayment loan. A constant flat rate is paid for an annuity loan. With a repayment loan, the annual rate with the remaining debt falls. The advantage of the annuity loan is that it is easy to plan, and with the repayment loan, the decreasing financial burden is a good argument. Both variants should be calculated with a loan calculator and carefully examined with regard to their advantages and disadvantages.
Why should the loan be earmarked?
A loan for the construction or purchase of a house or the purchase of a condominium should definitely be earmarked, ie applied for as a building loan. The terms and the credit volume are much more generous, and the interest rates are significantly better. The interest rate difference between a construction loan and a non-earmarked loan can make up to 2%. There is also the option of applying for a subsidized housing loan, which is supported by subsidies of different amounts depending on the federal state.
What costs are not covered by the mortgage calculator?
In the case of a mortgage calculator, some calculations are often forgotten when calculating a loan, but they do not make much difference overall. First of all, this is the real estate transfer tax, unless the property is already in the possession of the owner. If the property is sold within the family, the tax is 2, for all other sales 3.5 percent. In addition, there are costs for registration in the land register, payment of a broker, notary fees, insurance, running costs for residence during construction, etc.
The repayment calculator helps with planning
Taking out a loan, like the construction itself, needs to be planned and calculated precisely. With a repayment calculator, the borrower can go through various scenarios and have the best repayment period, the repayment rate, the annual interest rate, etc. calculated. The effects of a special repayment on the loan are also very interesting for the customer. In this way, he can find out how much money he would save and whether early repayment is worthwhile in view of the fees involved. In general, it is highly recommended to housebuilders to contractually agree such a special repayment and to clarify the associated conditions or the amount of the processing fee before signing the contract. Even without a computer, a good, safe repayment plan has to be drawn up, which despite the running costs and credit rates still leaves a financial cushion.