Would you like to buy a great new kitchen or renovate the old bathroom and you lack the necessary change? Then you need a cheap housing loan. Such loans have seldom been as cheap as they are now. The cheapest providers lure with interest rates below three percent.
With modernization loans, it is worth taking a look at the PSD and Sparda banks. In a regional home loan comparison, the conditions of Agree Bank Munich are currently among the cheapest.
Housing loans – better from a direct bank
When you go to a furniture store to buy a new kitchen or a comfortable living area, you often get financing with it. In some cases it is even “zero percent financing”. But be careful: Such housing loans are never in vain. The dealer pays the interest for you and hides it again in the price of the furniture. Or he doesn’t give you a discount, while other people who don’t get a subsidized loan from him get a 10 or 15 percent discount.
Home loans – always compare well
The banks offer two forms: fixed-price loans and credit-related loans. Lite Bank only offers fixed-price loans. That means: The direct bank checks your income and whether the desired loan fits. If so, they get their housing loan at the advertised interest. If this is not the case, go out empty-handed.
In the case of credit-dependent loans, the interest rate depends on the income situation. Officials who cannot be terminated always pose a lower default risk for banks than construction workers, for example. As a result, civil servants will generally get cheaper housing loans than other contemporaries with higher job risks.
Housing loan: From 1,000 USD to 50,000 USD
If you want to buy a new TV and finance this purchase, you don’t need more than 5,000 USD. It is different when remodeling a bathroom or buying a fine kitchen. Some providers only offer residential loans from 5,000 USD. In some cases, banks are already offering a residential loan from 1,000 USD. For example, if you want to convert your home to suit your age, you need more money. Up to 50,000 USD are possible here. Simply move the slider accordingly to have the right loan amount for your purchase and to find the appropriate provider.
Who gets a home loan on the Internet?
Most direct banks only grant housing loans to people with a fixed income, whether they are employees, workers, civil servants (especially popular!) Or pensioners. Freelancers, on the other hand, struggle. Exceptions are the Best Bank or Cream Bank. With the latter provider, these loans are more expensive. Probably because the workload is greater. Interpreting a balance sheet requires more work and different personnel than comparing the information in the last three salary statements with the information in the applicant.
Housing loan and its term
The monthly loan rate can also be influenced over the term of the housing loan. The rule is: the longer the loan term, the lower the monthly rate and vice versa. Those who value quick repayment must shoulder high loan rates. But he is debt-free in a comparatively short time. Those who prefer the lowest possible monthly charge can extend the term. If there is more time for repayment, the rate drops and the financial scope increases. Disadvantage: The longer the term of the housing loan, the more interest you have to pay to the bank.
You don’t get a housing loan?
If you don’t get a home loan, you have several options to get money. Either at the same or at a different bank.
Please take the following steps to improve your credit rating:
- Reduce the amount of home loan
- Include your partner who represents additional security
- Extend the term of the housing loan z. B. from 24 to 60 months, so that the monthly rate drops and better fits your disposable income
- Switch to another bank with similarly good conditions using the Good Finance residential loan comparison and try there with a longer term.