What sounded like a dream of the future for many homeowners with a more or less high level of building loan has meanwhile become a standard among many providers in the construction finance sector: homeownership financing is increasingly becoming more customer-friendly.
Credit institutions offer
This does not mean, of course, that interest rates have dropped to a new record level, but that gradually the conditions for the repayment of individual construction loans are changing.
Particularly in the area of special repayments, there seems to be an increasing movement in the real estate credit market as more and more banks and credit institutions offer their clients the possibility of repaying loans for their own home in a highly unconventional way.
Available free of charge
The term special repayment describes nothing more than an “extra” of the loan. Especially self-employed with their fluctuating income or families who beckons an inheritance or have the additional capital left over from sales of securities, achieve a debt repayment much faster with a special repayment.
In the meantime, this option is available free of charge at several banks and there is no longer any prepayment penalty. Another novelty concerns the amount of the amortization rate.
Meanwhile, some banks have begun to allow their customers to make changes in this area. Of course, this performance brings advantages, especially when, for example, the next career jump for young and aspiring spouses in a family is a more or less lavish salary increase.
Faster repayment of the loan is the goal
How high the adjustment of the amortization rate will be in the end depends entirely on the financial conditions. It is particularly important at this point, however, that the change is only associated with very low costs for the borrower – after all, a faster repayment of the loan is the goal.