Plan a real estate purchase in 2022? The largest German direct bank ING (formerly ING-DiBa, DiBaDu Bank) is not only a test winner for an unconditionally free current account with credit card, but is also a front-runner in the mediation of favorable building loans. The construction financing of ING-DiBa belongs next to the intermediaries Dr. Klein, Interhyp, Comdirect and ING to our test winners in the construction financing comparison:
The ING-DiBa has now communicated the 10 mistakes in a construction financing, so that builders and buyers of a property can also sleep peacefully for the next few years.
The advisor portal for private real estate financing Construction financing123.com has put them under the microscope for you, adding more information and commenting on them.
Avoid construction financing mistakes to make your real estate purchase a success
10 mistakes in construction financing (real estate financing)
To prevent construction financing from becoming a nightmare, prospective property owners should try to avoid the following mistakes:
1. Overestimating economic performance
The economic capacity for the monthly credit card is incorrectly estimated because of the current low interest rate phase for construction interest rates. Loan rates should always be calculated over fixed incomes and not set too high. Also the follow-up financing with a evtl. higher interest rates after the first fixed interest period must be taken into account.
2. Choose too low repayment rate at the beginning
The repayment rate is chosen too low at the beginning to keep the monthly burden as low as possible. At least 2-3 percent repayment per year is necessary so that the residual debt after the first fixed-interest period is as low as possible, especially with the current historic low interest rates for construction loans.
3. Calculate too low ancillary purchase costs
The ancillary purchase costs (brokerage, notary fees, land registry, land transfer tax to the tax office) are calculated too low. It should be approx. 15 percent of the purchase sum of the real estate for the additional expenses are calculated in.
4. Additional costs with the building of houses are ignored
The additional costs for the property are often underestimated. Many real estates are offered in a standard equipment. But the house of the bar do not fulfill often the personal requirements to a comfortable home. Extra desires with the building and a more elevated equipment cost much money and let the loan sum rise. Nevertheless, individual changes should be implemented right at the beginning, because subsequent construction changes and extensions cost even more money.
5. Possible bank fees with the house purchase forgotten
Additional fees of the bank are often forgotten: In construction financing, appraisal fees may be incurred for the valuation, if it is z.B. deals with a second-hand property. In addition, many banks demand commitment interest of ca. 0.25% per month if the construction loan is called later than agreed upon. Remedy create here credit offers with a free commitment interest rate.
6. You have not secured your building project
No insurance for the risks of building, buying and financing the property means an enormous risk for you and others. The house construction, house purchase or real estate purchase as well as the subsequent loan payment should be secured against risks such as illness, occupational disability or death. Here a risk life insurance, occupational disability insurances as well as a builder's liability insurance and household insurance with sufficient insurance height offers itself.
7. You overestimate your own work performance
Over-calculated personal contributions to the construction and finishing of the property: builders can reduce the loan amount through their own construction activities. This work, which is often carried out in addition to the actual job, is often valued too positively because the experience and manual skills are lacking.
8. A too short fixed interest period is chosen
The fixed interest period is chosen too short: The shorter the fixed-interest period, the more favorable the construction interest rates are. With the current low-interest phase, however, a longer fixed interest rate than only 5 years should be selected, in order to have also for the future clear financial conditions with the interest rates. Despite the somewhat higher interest costs, ING-DiBa recommends fixing the fixed interest rate for 10 years, or better 15 years.
9. Your loan agreement is not designed flexibly
The loan agreement was not chosen flexibly: Life is not predictable for 5, 10 or 15 years. Periods of unemployment with lower rates or periods for higher savings rates should be able to be used flexibly in the loan agreement. Therefore, any good construction financing should include the option for free unscheduled repayments or changing the repayment rate or even the amount of the loan installment.
10. You do not plan reserves for repairs and modernization
Lack of reserves for repairs or modernization can lead to an existential crisis: During the repayment of the building loan, savings must already be made again for repairs and modernization measures such as roof, heating or insulation, which will be required after 10 or 15 years. The loan installment should therefore always include additional margin for reserves, so that in addition to the monthly loan installment, a savings installment for future costs can also be raised.
ING-DiBa construction financing: Request a free offer
In just 3 minutes, interested parties can obtain an individual offer for construction financing online from ING-DiBa. The ING-DiBa was selected by the magazine FOCUS-MONEY (issue 50/2013) as the 3. Awarded "Fairest Construction Financier" in Germany for the second time in a row. Request a free quote now!
A construction financing through ING-DiBa offers low construction interest rates for 5, 10 or 15 years fixed interest rate period, a flexible and freely selectable annual repayment of 1% to 10% including the possibility to change the repayment rate twice free of charge, free annual unscheduled repayments of up to 5% of the loan amount as well as a 6-month interest-free provision of the construction loan. In a recent promotion, ING-DiBa is even offering its construction financing for 12 months without commitment interest.
The ING-DiBa offers on its side also a free info. package for the optimal building financing:
- Rent or buy?
- What can I afford financially?
- Checklist ancillary purchase costs for a construction financing
Share this post. By sharing you accept our privacy policy, found under the info button or at the bottom of the page.
Write something about it Cancel reply
Financing a dream property
Fulfill your dream of owning a home for your family in 2021! Compare best providers for a construction financing and secure the lowest construction interest rates on the construction money.
Best construction financier
To the 14. Times in a row "Best construction financier" Interhyp is the test winner for a favorable construction financing (Test €uro, 08/2019).
At Interhyp, a direct broker for mortgages, the construction interest rates at over 400 banks, savings banks, insurance companies and building societies are compared for you via a personal consultation.
Request a free financing offer now and finance your home, townhouse or condominium with low interest rates:
Current construction interest 2021
Current building interest for a debit interest commitment of 5-30 years at a glance. The offers can vary depending on the provider and personal financing offer.
Secure the best loan interest rates for a construction financing in 2021! Compare the interest rates of up to 400 banks, savings banks and other financing partners with just one inquiry!
Your own door to your own 4 walls is worth its weight in gold: Construction financing makes it possible to buy a house or a condominium.