Offer and performance of Allianz construction financing
Allianz mortgage lending offers various types of real estate loans. Because insurers can also offer their customers financing. This makes little legal difference for consumers. We recommend comparing different loan offers from insurance companies and banks.
Real estate loan from an insurance company
Insurance companies fund themselves differently than banks. They invest their customers’ money from long-term policies such as pension and life insurance over a long period of time. That’s why you usually get loans from insurance companies with significantly longer fixed-interest periods than from banks – sometimes with a term of 20 or even 40 years. Banks usually offer better conditions for short-term loans. In some cases, consumers have to raise less equity with banks.
Real estate loans on offer
1 annuity loan
With this model, you pay back your loan in equal monthly installments. Each installment is made up of the
Repayment means that Amount that you usually pay monthly to repay the real estate loan. The amount of the repayment is determined by the repayment rate. This is to be distinguished from the interest rate.
Example: it can be agreed that 2.4 percent of the loan will be repaid per year, that would be 2,400 euros per year for a loan amount of 100,000 euros, or 200 euros per month. A lower loan amount of only 97,600 euros then reduces the monthly burden of repayment and interest.
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On the received real estate loan you have to Interest charges pay. These are called percentage per year specified (borrowing rate).
Example: With a real estate loan of 200,000 euros and an interest rate of one percent, you pay a total of 2,000 euros per year, the equivalent of 166.66 euros per month.
The effective interest rate includes all other costs of the real estate loan, for example the notary costs for the registration of a mortgage. Banks are limited in passing on costs. For example, you may not pass on the cost of the appraisal to the customer because it is done in your own interest.
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The fixed interest period for real estate loans is the initial period (e.g. the first five, ten, 15 or 20 years) in which the fixed interest rate is agreed. It is allowed during this period no interest rate adjustments give.
The current interest rates are pleasingly low from the borrower’s point of view. Interest rates change daily. However, the low interest rate can be secured for a long time by agreeing on a fixed interest period. The longer this period, the more expensive it becomes.
Example: They agree that the bank may not increase the interest rate of 1.5 percent for a period of 20 years. If you agree to a period of five years, the interest rate for the real estate loan drops to 0.75 percent.
» To the glossary entry” data-delay=”50″ data-placement=”auto” data-title=”fixed interest period” data-toggle=”popover” data-trigger=”focus” data-original-title=”” title=”Fixed interest period”> Fixed interest Depending on the agreement, the remaining amount can be paid or financed with a new forward loan. The so-called follow-up financing.
2 full repayment loan
The Volltilger loan is suitable for anyone who wants to be debt-free at the end of the loan term. Allianz offers a constant interest rate. Until the full loan is repaid. With Volltilger loans up to 40 years.
3 Bullet Loan
With a bullet loan, borrowers repay the entire loan amount at the end of the term. The form is suitable for people who expect a larger financial cushion at a later date.
4 BestAger financing
Anyone who wants to convert or renovate their property in old age can use Allianz’s BestAger financing. Behind it hides a amortized loan, where only the interest is paid. They can be fixed for ten, 15 or 20 years. Requirement is that borrower at least 60 years old are the owners of the property and use it themselves. The property must already be paid off in full. A minimum income must also be proven.
5 Real estate financing for investors
Allianz recommends that investors only pay interest during the term of the loan and repay it at a minimum of 0.5 percent. If life insurance or annuity insurance is taken out at the same time, the loan can be paid off in whole or in part with the amount paid out at the end of the insurance term. The money for the repayment is therefore saved via the insurance.
What else is possible with Allianz construction financing
- special repayments depending on the agreement
- repayment rate change twice during the term
- suspension of payment of up to 12 months during the fixed-interest period
- Inclusion of funding programs: KfW and BAFA
- Early Repayment Right (optional, free of charge) when selling the property
Good to know
- Die The minimum loan amount is 75,000 euros. The upper limit is flexible, as Allianz Real Estate may step in for major projects.
- The loan amount may not exceed 90 percent of the real estate market value.
- The self-employed and freelancers pay an additional interest rate of 0.1 percent. Excluded are doctors, pharmacists, tax consultants and auditors.
