The DKB achieved 4.1 out of 5 stars in our analysis of the best real estate loans from October 2023. It impressed with its comparatively low financing interest rate. Also good: the very clear building financing calculator and the option of online advice. Disadvantage: The processing time from inquiry to loan decision and down payment takes several days. A building loan for 410,000 euros (90 percent of the purchase price) cost 4.02 percent effective annual interest rate in October 2023.
Advantages
- comparatively good financing interest rate
- very clear construction financing calculator
- Online consultation possible
- Online graduation possible
Disadvantages
- Customer service only available Monday to Friday
- Credit checks take several days
- Loan payout takes several days
Cheap loan interest rates
Loan interest for equity 10%
4,02%
loan amount
20.000 €
Commitment interest
0.25% per month
Contents
Show more
Show less
DKB construction financing: services and conditions
The following services and conditions apply if you want to take out building financing with DKB in October 2023.
What can you finance with the DKB?
The DKB has construction financing in its program for the following situations:
- You want to buy an existing house or apartment
- You want to modernize an existing property
- You are buying a new building
These properties are eligible for construction financing:
- condominium
- detached house
- Apartment building
The building interest at the DKB
We asked the DKB about building interest using two example properties.
- One is about a small apartment in Frankfurt am Main that costs 150,000 euros and for which you have to borrow 100,000 euros net.
- We also looked at a new building in Berlin that you want to buy for 450,000 euros, of which you contribute 40,000 euros as equity.
The DKB charged loan interest between 4.02 and 4.06 percent. This is an effective annual interest rate that includes all fees.
What we noticed at all the banks and insurers we examined was that the gap between effective and nominal interest rates had increased; This means that providers appear to be pricing in higher administration and processing costs.
On average, the building interest rate in October 2023 for a ten-year fixed interest rate was around 3.8 percent.
You can read more information about current financing interest rates and forecasts for their further development in the building interest guide.
You can read more about the profiles for which we requested building financing in our real estate loan comparison.
Mortgage in construction financing
Mortgage in construction financing means that the DKB has rights to the property that it is financing for you. A lien is often entered in the land register (land charge).
If you are unable to repay your loan, the DKB has the right to sell the property and keep the proceeds in the amount of your remaining debt. The lien will only be deleted once you have paid off the loan in full.
How do advice and contract conclusion work?
You can get advice online about building financing from DKB.
You can submit necessary documents such as salary statements, proof of equity, pension certificate, building description or draft of the purchase contract, etc. in the following ways
- upload online,
- send by email,
- send by post,
It usually takes up to 3 working days from the complete application to the creation of the loan agreement. If all payment requirements are met, the real estate loan should be ready for you in five working days.
What loan amounts are available?
In the DKB online calculator you can query loan amounts between 20,000 euros and 5 million euros. Note: The commitment interest rate may change depending on the loan amount. The following also applies: the less money you ask for, the sooner or longer the provider can secure the conditions for you.
Which repayment can you choose?
At DKB you can choose repayment rates between 2 and 10 percent. Which rate is possible depends on the market value of your property and how much of the purchase price you finance with a loan (loan-to-value ratio).
You can find further details in our guide to repayments for building financing.
What options are there for special repayment?
With the DKB you can set an annual rate for special repayments. This ranges from 1 to 10 percent of the initial loan amount. Please note: If you pay off parts of your debt early, the insurance company will lose interest income. Therefore, providers like to charge a surcharge on the financing interest rate for the right to make special repayments.
At DKB, this surcharge does not apply for special repayments of up to 5 percent per year. Anyone who wants to repay between 5 and 10 percent annually pays a surcharge of 0.05 percentage point on the building interest.
Alternatives to construction financing from DKB
Mortgage financing is a major financial commitment. You should never conclude them lightly, but always compare them carefully. Ask around at your house bank, at the local savings banks and Volksbanks, find a credit broker like Interhyp or Dr. Small or use a mortgage calculator for an overview.
You can find testimonials from other real estate loan providers here:
You can read more about building financing and good providers in our comparison of real estate financing.
2023-10-25 19:36:44
#DKB #construction #financing #conditions #services
