The condition of a loan often differs considerably from bank to bank. Borrowers should therefore compare both the loan and the bank conditions beforehand. The decision for a loan should never be taken lightly.
Condition comparison in mortgage lending
Credit contracts usually have a long term. In particular, a building loan often has to be paid off by borrowers over several decades. Excellent conditions can significantly reduce the financial burden on borrowers.
It is therefore advisable for anyone interested to compare the conditions of the credit institutions.
All consumers should pay particular attention to the following aspects:
- Interest rate
- Account management fees
- faster repayment of the loan can be possible through special payments
- early repayment of the loan amount possible (no prepayment penalty).
Borrowers receive the best and cheapest conditions if they have a good credit rating and a certain amount of equity is available for a real estate loan. A very good credit rating reduces the risk of the banks considerably.
Home savings loans are granted in the course of a building society contract. If you would like to save money for a house with a home savings contract, you can initially negotiate an optional home loan that you can use after a certain saving period. The interest is fixed when the building society contract is agreed, so that you can secure cheap interest. The home loan is a repayment loan.
Use loan calculator to assess conditions
By comparing the terms of the loans offered and the terms of the different banks, future borrowers can quickly get a comprehensive overview.
- There are loan calculators on the Internet that immediately display the effective annual interest and the debit interest. Another important indicator for evaluating the average credit costs for credit-related loans is the two-thirds interest rate. This interest is given by the respective bank to two thirds of the borrowers.