Calculate payday loan amount: That’s how it works!

In addition to the installments, borrowers incur further costs. Which of these are and how they are calculated, answered the following article.

Calculate payday loan costs

Calculate loan costs

If you take out a payday loan, you have to take into account the monthly installments and other costs. Such as the interest, processing fees and costs for any additional services. To calculate the monthly costs, term, special repayments and other arrangements made in advance with the financial institution are also required. If all this is available, the credit can be calculated. For this purpose, the interest for the entire duration is first calculated, for which a simple rule of thumb serves:

  • – Interest rate times loan amount and maturity years

The result must now be added only to the loan amount and the resulting processing fees. Finally, the total is divided by the duration of the loan. Please note: specify the duration in months and round off the total for a better overview. The latter is not absolutely necessary, because with this formula all credit sums can be calculated. This is especially useful for the credit comparison.

Credit comparison made easy

Credit comparison made easy

After the total has been divided by the duration of the loan, borrowers receive the monthly installment to be paid. This makes sense in the first place, of course, to keep track of the often opaque conditions. However, the formula can also be used to compare loans quickly and easily. If you have an offer, you can use the above formula to calculate the final cost and get a better overview. Nevertheless, not all credit comparisons indicate the actual costs. Often, additional costs are hidden in the contract, which must be considered.

The formula can also be used to calculate, for example, which loan amount is the maximum possible, how much can be saved by a better interest rate and which cost points have the greatest impact on the final loan amount. Real estate loans can also be calculated with a few additional calculation steps.

This is how a real estate loan can be calculated

This is how a real estate loan can be calculated

The calculation of a real estate loan is very easy. All you have to do is add a few extra costs to the bill. The amortization rate, for example, or the special repayment. Also, the value of the property is important and may be directly included in the above formula. Since the calculation can be quite complex here, it is advisable to consult a specialist.

By the way: There are numerous loan calculators for different types of loans on the net. These are a useful alternative to manual billing and are a good option, especially for special loans. However, a simple installment loan can be easily calculated by yourself.

Without Preliminary: How to recognize a reputable credit provider

 

Anyone looking for a loan on the Internet despite credit bureau’s entry will quickly find it. But with some providers, caution is required.

There are companies or sole proprietors who are after such people. These companies want nothing more than to lend money to people. Such companies pretend to their clients that you are actually arranging a loan full. Instead, you try brashly with unfair means to get money from your customers.

How to protect yourself from dubious loan offers and how you, a reputable Can get credit despite negative credit bureau . Find out now in our detailed guide.

According to various surveys, about 500,000 people a year in Germany search for a loan despite credit bureau.This number, provides some dubious credit intermediaries, the best conditions for a punching business. And there are enough people who fall for their tricks year after year.

With these tricks you will be asked to pay:

Pay with cash on delivery.

A popular way is to send the documents by cash on delivery. This trick is used very often to get a few hundred euros quickly. The customer is simply promised a loan, but the alleged loan agreement can only be handed over by paying a fee from the postman. As soon as the customer pays the COD charge, he will be bitterly disappointed. Instead of the promised loan agreement, he gets a bunch of documents, without any value with many more promise. Thus, the dubious credit intermediaries, the unsuspecting customer several times in the bag.

The life insurance – the rescue of the credit rating.

The life insurance - the rescue of the credit rating.

Even brash is the life insurance scam. The rogue credit broker is promising credit to clients, claiming that the bank needs life insurance to cover the loan. Or it is claimed that taking out a life insurance policy will improve the credit rating and thus a loan payment would be possible. As soon as the corresponding statutory withdrawal period of 14 days has elapsed, the intermediary gets up and leaves the customer with expensive life insurance, which he can not terminate. We advise that you do not sign anything that you do not understand or that does not lead to the conclusion of a loan agreement.

A covered bill and no credit agreement.

A covered bill and no credit agreement.

Up-front fees here you should be careful. If an intermediary asks you for money in advance, it can not be a serious mediation. Who wants to have money in advance, which is certainly not interested in a credit intermediary. In Germany, only fees may be charged if the mediation has come about and the customer has actually received a loan.

Credit despite credit bureau: That’s how you recognize a reputable mediator

No initial costs

No initial costs

The offer is understandable and all costs are clearly defined. If a commission / brokerage fee is charged, it must first be clearly stated in the documents.

No representative visit:

In order to conclude a loan agreement, there is no need for a representative. Such visits are usually associated with costs and completely unnecessary. All necessary documents will be sent by the agent by mail or, if desired, to your private e-mail address.

A non-binding loan offer:

A non-binding loan offer:

If you do not like the offer and you do not want to accept it, the credit intermediary may not charge you any fees. A loan offer should always be free and non-binding for the customer.

No additional contracts:

No additional contracts:

A reputable broker would never take advantage of the ignorance of its customers to additionally sell you a product. In order to get a loan, we do not have to sign any additional contracts.

More information on the subject of “credible loans despite credit bureau” can be found in our guide: Is a loan despite credit bureau reputable ?. Here we have all the necessary information for you together.

You are looking for a serious loan offer and that despite negative credit bureau? Just use our free service and apply today, a non-binding loan offer. The service is free of charge and without obligation.

Corporate insolvency: reasons, statistics and process

 

A corporate insolvency, in contrast to a private bankruptcy, draws much wider circles. Personal bankruptcy is a drastic cut for the person and family concerned. In a corporate insolvency, however, significantly more people are affected.

In addition to the employees, whose jobs are massively endangered, a corporate insolvency also affects the suppliers and customers of the company.

The legal basis for a corporate insolvency, also known as rule insolvency, can be found in the Insolvency Act. This came into force on 1 January 1999.

The causes of a corporate insolvency

The causes of a corporate insolvency

Basically, the reasons for insolvency, also called bankruptcy in the earlier language regime, are obvious. The company had more expenses to pay than at the end of the day revenues were in the books. If a company can no longer pay more than 90 percent of its outstanding bills, it is talked about insolvency.

Impending insolvency becomes apparent if the occurrence of insolvency is foreseeable. The period of impending insolvency may not exceed twelve months.

The third reason for bankruptcy is over-indebtedness. Thus, the law describes the condition that the gearing can not be canceled by normal business operations.

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The bankruptcy petition

The insolvency application can be made by the company itself, but also by a creditor. The competent court examines both the application and the existing assets. If one of the three causes mentioned above is the basis for the bankruptcy petition, the court usually gives the petition.

The prerequisite is usually that assets, that is, the bankruptcy estate, exceed the value of 3,000 euros. Bankruptcy assets include not only objects but also open claims against clients. If this is not the case, the company may file a claim for deferment of the costs of the proceedings so that the insolvency proceedings can be initiated.

If the assets are insufficient to cover at least the costs of the proceedings and the deferral is refused or not applied for, the courts reject the insolvency petition for lack of assets.

The insolvency procedure

If the petition for corporate insolvency has been accepted, the competent court will appoint an insolvency administrator to continue the business. As part of the opening of the bankruptcy proceedings, an insolvency plan will be prepared, which provides for how the company can be rehabilitated. The basis for the insolvency plan is the insolvency code.

However, divergent regulations may be made, for example the segregation of certain goods in order to satisfy the claims of certain creditors.

The insolvency plan reflects the actual state of the company and defines certain groups of creditors. The groups are divided into segregated creditors, creditors without special security of claims and employees.

Separate creditors have been provided with special collateral that can be liquidated outside the bankruptcy estate in order to meet the claims of these special creditors separately.

Once the insolvency plan has been drawn up, it will be presented to the creditors, employees (if any, represented by the works council), the debtor and the insolvency administrator in a court hearing.

Corporate insolvencies by industry and company age

Corporate insolvencies by industry and company age

 Young businesses are about the same affected by bankruptcies. Things are different at traditional companies

Deadlines and responsibilities (infographics)

Deadlines and responsibilities (infographics)

From the occurrence of insolvency must be filed within three weeks with the competent court of insolvency. If this deadline expires, the competent bodies of the company make themselves guilty of the offense of insolvency.

In the case of a legal entity, the managing director or executive board is the liability, and the owner is the owner of a private company. If the penalty for insolvency transfer exceeds 90 daily rates, the person responsible is considered a criminal record. In addition, the managers make themselves liable for damages due to the failure of the creditors.

Managing directors are also personally liable if they conclude contracts with third parties after the insolvency is reached.

Why are many insolvency applications filed late?

The reasons for a late bankruptcy report, according to Euler Hermes, a credit insurer, mostly in errors of management. The following chart shows the most common misjudgments:

 There are defined deadlines to register a corporate bankruptcy. But for different reasons they are often not kept

 

The assessment, as can be found in the first three points of the diagram, shows that those responsible here almost blue-eyed deal with an impending insolvency as a precursor to bankruptcy.

Bankruptcies in Germany in absolute terms

Bankruptcies in Germany in absolute terms

The chart below shows how many companies, but also consumers, went bankrupt in the period between October 2014 and October 2015.

 Young businesses are about the same affected by bankruptcies. Things are different at traditional companies

The number of corporate insolvencies was relatively stable and fluctuated around 2,000 bankruptcy petitions per month during the investigation period.

Special feature of partnerships

If a partnership, such as a craftsman, faces bankruptcy, he can deregister the trade. At this moment, the bankruptcy no longer applies, he can file a petition for personal bankruptcy.

Thus, after six years, there is again the possibility of a debt-free reboot. The deregistration of the business enterprise saves the former entrepreneur now the settlement by a insolvency administrator.

Special features of legal persons

The special feature of a legal entity, a limited liability company or AG, lies less in the insolvency proceedings, but rather in the risks for the executing bodies, ie managing directors and board members.

Paragraph 35, para. 1 of the Industrial Code provides a special treat for this group of people: “The exercise of a trade is to be prohibited by the competent authority in whole or in part, if there are facts, the unreliability of the trader or one with the management of the business contracted person in respect of that trade, provided that the interdiction is necessary for the protection of the general public or the employees on the holding. “

This situation is fulfilled according to prevailing case law

  • Disregard of tax and social security obligations, ie open payments in these areas
  • Affidavit on property (warrant to enforce the declaration)
  • Lack of motivation and no professional responsibility
  • Lack of economic capacity (no financial resources)
  • Ongoing criminal or regulatory offenses

Especially the social insurance institute again and again commercial prohibition proceedings for former representatives of a company. However, no commercial proceedings may be instituted during ongoing insolvency proceedings.

Managing a GmbH are in a particularly critical situation. In the case of outstanding contributions to social security, the institutions have the opportunity to sue the unpaid contributions in a civil procedure from the private assets of the managing director.

The workers in the corporate insolvency

The workers in the corporate insolvency

Of course, a particular focus of corporate insolvency is on employees. First of all, they are obliged to continue their work. In return, employees are entitled to their wages, any gratuities or special payments, if these are regulated in the employment contract.

However, the insolvency administrator also has the right to indemnify employees. Often, in this case, the salary continues to be paid due to the lack of available liquidity. The open wages and salaries are then as a mass liability to the total claim against the insolvent company.

To prevent bankruptcy resulting in numerous personal bankruptcies of employees, employees can apply for so-called insolvency money. This service is paid by the public sector, the Federal Employment Agency. The benefit period is limited to three months. As compensation for earnings, no income tax is payable on the insolvency benefit. All are entitled to subscribe

The financing of the insolvency money is made by an employer contribution. In order to be entitled to insolvency money, the company must be deleted from the commercial register or trade register, that is, have ceased the activity. The right to insolvency also exists if the procedure was rejected for lack of assets.

Termination during the insolvency proceedings

An insolvency procedure means a notice period which may differ from the contract of the employee. The insolvency administrator has the right to terminate the employment relationship with a notice period of three months to the end of the month. This regulation differs from collective agreements or individual contracts.

The three-month period also lasts if a collective or individual contract provides for non-cancellability, for example on the basis of length of service.

Similarly, a shortened termination is permitted. Was the provisional insolvency administrator, for example, in January to 31.8. terminated, the final insolvency administrator may after the opening of the procedure quite in February to 31.5. cancel the employment contract. The employee can in this case the lost salary for the period from 1.6. until 31.8. sue. However, the chances of success are low, since the wage is included in the sum of the claims against the company.

Operating terminations are also possible. Reasons for this may be the decommissioning of the business, the closure of sub-areas (BAG, judgment v. 16. 5. 2002, NZA 2003 p. 93) or the intended sale by the insolvency administrator. Here the facts are sufficient that the buyer provides no concept for a further employment (BAG, judgment v. 20. 3. 2003, NZA 2003 S. 1027).

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Net loan amount in EUR: Running time : 12 months 24 Months 36 months 48 months 60 months 72 months 84 months 96 months 108 months 120 months

The reconciliation of interests

If there are drastic changes in the company, which also provide for the dismissal of employees, the insolvency administrator and works council will strike a balance of interests for the named employees, who will receive a redundancy.

However, the skewer is turned around here. The Insolvency Act provides for a simplification of the burden on the company in this case (§ 125 InsO). The employee must explain how to achieve the reconciliation of interests and prove that his dismissal is not socially justified (§ 1 (2) KSchG).

 

Social scoring – digital credit check on the net

China as a pioneer in the new way of credit check

China as a pioneer in the new way of credit check

China is dwarfing Google or Facebook in data collection. It is known that the governance program foresees that each citizen should be controlled and either rewarded or punished in the event of misconduct by 2020 (1).

AliBaba, the consumer giant from the Middle Kingdom, owns in the Group both financial affiliates (Ant Financial) and a mobile payment platform (Alipay). After all, it brought Alipay in May 2018 to over 600 million users worldwide. The duo is completed by Sesame Credit, Alipay’s Chinese response to the credit bureau, and AliBaba now wants to extend the classic credit check to include social features – a gigantic vacuum cleaner is emerging on the horizon. (2)

Important information

  • credit bureau in Germany also takes into account data on the social environment and not just on its own.
  • In addition, AliBaba wants to take account of economic activities for the credit check, eg consumer behavior.
  • In order to do better in the scoring of Ant Financial (AliBaba), for example, consumers would have to buy or lease more.
  • The number of algorithms to calculate this score is estimated to be between 350 and 950.

Social patterns and social behavior – in Germany no credit criterion?

Social patterns and social behavior - in Germany no credit criterion?

If you want to apply for a loan, you have to answer a few questions. This does not only include questions of marital status, income or other liabilities. The question of the employer and the industry appear obvious, but also affect the creditworthiness of the applicant. A game-hungry civil servant is better classified because of his immutability than a construction smith who has never had a cube in his hand.

It goes without saying that the bank would like to know the address. However, this is a socioeconomic criterion when assessing creditworthiness. What was the number of bad loans in the street or postal code district? If it is a multiple dwelling, did it cause any abnormalities among other residents? The Mortgage Credit Directive also included the possible future state of health in the credit decision.

Of course, these data are harmless compared to what Ali Baba plans, but so completely without taking into account the social environment, the banks in this country are not enough.

Economic activity plays a major role at AliBaba

Economic activity plays a major role at AliBaba

AliBaba plans to include the economic activities of potential borrowers in the credit check. If you buy a lot, you will fare better than someone with only a small cash flow. Alipay makes this data collection easy for Sesame Credit. In addition to the complete recording of consumer habits, data on the social environment can be collected as soon as payment flows between private individuals arise.

The huge increase in e-commerce in China makes this possible, people permanently leave their traces of consumption on the Web.

So far, activities at AliBaba are still voluntary, with about 15 percent of users taking part. To increase the attractiveness, those who promote friends to participate, credited plus points. (3)

Tencent Holding was asked by the Chinese central bank to stop its competitor product to Sesame Credit. Obviously, the Chinese powers are not quite sure what to do in terms of surveillance, beyond the state activities, the country. (4)

Alipay repeatedly asserts that the data collected is in no way available to the authorities. It was only about making the economic life more comfortable.

While banks still have tons of customer data, they are rarely used. This also has to do with the privacy policy, with convenience and inefficiency.

The situation is different with the FinTechs. They know very well that user data, interpreted and used correctly, mean economic added value for the company.

The radiator control of Google Home through the app “tado” is of course handy. Also for Google. The group sees when the user is at home, when he watches TV, when he goes to bed, in short, which advertising makes sense for him in Google’s eyes.

Consumption becomes a competition

Consumption becomes a competition

If you need a good credit rating at Ant Financial, you need to enter the competition. He has to buy or lease. But that alone is not enough. The seller or landlord should have good “social credits”, because these then turn on the buyer or tenant of a thing. This goal is best achieved through social platforms because it offers the greatest potential for people with high social credits.

“Social credits” and thus consumption become a competition in which it is necessary to win through downright blind actionism, that is, to improve its own ranking. While the number of underlying factors in a conventional credit check is rather clear, it is getting out of hand with the Chinese. No one knows exactly how many algorithms Sesame Credit uses, experts say it’s between 350 and 950.

The Chinese plans, whether they be state-owned or private, are causing massive skepticism among the rest of the world. This shows the stop of the acquisition of the US company MoneyGram international by Ant Financial. The Committee on Foreign Investment in the United States (CFIUS) had banned the $ 1.2 billion deal.

Sesame Credit also considers it critical that the data remains with the institution. They do not lie, as in Germany, with a change of the financial service provider, still with neutral place, the credit bureau.

Deduct interest on debt and financing costs

Take advantage of the tax deductibility of all financing costs

Take advantage of the tax deductibility of all financing costs

Debt interest is tax deductible under certain conditions. Find out under what circumstances this is possible and what you should be aware of.

Important information

  • Debt interest is deductible if the liability is an operating debt.
  • Private financing costs can be claimed only to a limited extent for tax purposes. The three-account model helps here.
  • When using the three-account model, there are some things to consider, such as tax traps.
  • Relevant is the time when interest was incurred and not when it was paid.

When are debt interest tax deductible?

When are debt interest tax deductible?

Debt interest is always tax deductible if a liability for which you pay interest is a debt. This is the case if you finance the acquisition or production costs of assets and operating expenses.

The same applies if you provide your company with debt capital as liquid assets. By contrast, private financing costs can only be claimed to a limited extent for tax purposes. For this reason, it is therefore necessary to try to shift all private debt interest into the operational area, so that the accrued interest on debt can be deducted for tax purposes as operating expenses.

It is a taxable basically free, whether it finances its operation with equity or debt. Furthermore, there is no legal obligation stating that you must use operating income primarily to repay operating debt.

Therefore, if you repay a private liability either with a corporate current account loan and finance your personal expenses with credit, or if you use your income to repay your private liabilities and insist on the operational current account credit, there is no abuse of freedom of design.

Three accounts model

Three accounts model

With the three-account model, you can achieve a tax deduction even if you buy a single-family home for your own use and finance the purchase price with a bank loan. In plain text:

  1. Account 1 represents the company account. You use this to record all operating income. But beware: This account must be kept exclusively on a credit balance basis.
  2. Account 2 also represents an operational account. This accounts for all operating expenses, ie you use credit in this account (credit account).
  3. Account 3 then handles only your private transactions.

You can now withdraw money from account 1 (credit account) and transfer it to your private account, account 3. If you make use of account 3 loans because, for example, you are financing the purchase of a private one-family house, you can repay this private loan (whose interest you can not deduct for tax purposes) by withdrawing account 1.

If you then manage all operating expenses via account 2, this account will inevitably generate a corresponding debit balance. However, since the credit draw on account 2 is clearly operational, you can deduct the interest on this as operating expenses tax deductible!

This will allow you to transfer all your private liabilities to the operational area, saving you a lot of taxes. If your tax office does not recognize your options, you should seek legal remedies to secure possible claims.

However lurk in the three-accounts model and some tax traps, but you can easily handle. For example, avoid a simultaneous rescheduling of the outgoing account as well as the repayment of private debts through withdrawals from the revenue account.

Arrange with your bank no compensation of credit and credit account. A compensation means that credit and credit account form a unit of interest. Rather, the accounts should be kept strictly separate.

Make sure that the operating revenue account is kept on a credit-only basis (account 1 should never be on target!). Also, do not cause transfers between the spending and receipts accounts, for example, if you accrue funds on the expense account accidentally, or if out-of-pocket expenses are posted to the revenue account. Because with such transfers, you clearly represent a relationship between the accounts.

Also, do not make over-large withdrawals of account 1 while borrowing for major operational investments, and do not direct withdrawals directly to a private loan account to pay off your private debts, but first post your earnings on your current account and then wipe them out from – at a later date – your private debt.

The date of origin of the debt interest

The date of origin of the debt interest

In order for you to be able to deduct interest on debt as business expenses, you, as a reporting trader, only need to know the period for which they accrued – and not when you paid them.

In plain English: If the bank calculates interest on you and does not charge it to you until 3 January of the following year, these interest rates still have to be deducted tax-deductible last year.

On the other hand, interest for the new year can not be deducted for taxation last year (even if it was paid at that time).

As a freelancer, however, the outflow principle applies, ie. Interest, discount and other financing costs are tax deductible only in the year in which they were actually paid. However, there is no period of max. Between the payment of the discount and the loan payment. 4 weeks, the discount may still be claimed for the past year.

When you create an income / surplus bill, you can deduct the discount in full as an operating expense at the time of retention, ie when the loan is disbursed. However, the tax authorities only accept a discount of max. 10% for a loan with a 5-year fixed interest rate.

 

When can I take out a real estate loan?

More and more people are looking for a house of their own – given the currently low construction rates, this decision makes sense.

A home not only provides independence but also security and is also an optimal way to invest your capital. Still, most people can not afford to buy or build a home completely out of pocket and opt to take out a real estate loan. What to look for and how to find the right bank – you can find out everything here.

Why is the right time for a real estate loan now?

Why is the right time for a real estate loan now?

No doubt, building or buying your own home is a step that should be well considered and requires proper planning. The majority of people buy or build once in a lifetime and usually invest all the available capital.

There are many reasons why you should choose a real estate loan right now – conditions for financing have rarely been as favorable as they are today. So, if you’re thinking of buying a home, it’s best not to think about it for too long, because interest rates can rise very quickly as soon as interest rates turn around.

Of course, low interest rates should not be the only incentive to finally fulfill the wish of one’s own house. Maybe you already have a certain place in which you want to live and already have some capital to take out a real estate loan? The first step in this case should be to make an accurate calculation.

Do not forget: Buying a property not only involves the mere construction or acquisition costs of a building, but also other ancillary costs – and they can quickly become expensive.

Funds fall – can I even afford a real estate loan?

Funds fall - can I even afford a real estate loan?

Especially when you live in a city where rental prices are exploding, you may think more and more about investing in your own home.

The monthly installments for construction money may well fit into your own budget – but it is still a must to make a detailed statement of monthly expenditure and revenue before. Only then can you determine how much credit you can actually afford.

To find out what your own budget looks like, you can start a very simple calculation: orient yourself to the current rent and add all that is currently saved monthly. The difference between revenue and expenditure is the budget you would have every month.

Do not forget two important points: You also have to pay the second rent for the current apartment during the construction phase. In addition, you should also calculate unexpected costs or a financial buffer if there is a bottleneck.

If you use the cold rent to calculate the budget, you should also include the operating and heating costs. Use this information to refer to the data on the last billing. Take into account here that the heating costs in a detached house are generally much higher than in a multiple dwelling.

Pay attention to maintenance costs

Furthermore, it has to be considered that as a homeowner you are responsible for the maintenance of the building and this will sooner or later require additional expenses. Do not invest your entire capital including real estate loan in the house construction, but save a financial cushion.

For most people, it is not possible to realize the financing of a home without any compromise or renunciation. Therefore, it is important to note all (!) Expenses for a few months. How much do you spend each month on food, stimulants and other things?

Are there any clubs where you are a paying member or are there other running costs? The greatest potential for savings is usually shown when traveling: those who have traveled more frequently each year often have to forego this first, or at least limit themselves. However, the house is paid off much faster and you enjoy more financial freedom.

How much equity do I need for the real estate loan?

How much equity do I need for the real estate loan?

How much equity you should bring yourself, if you want to take a real estate loan, it probably makes any future homeowner much thought. Basically, it is of course recommended to start as early as possible with building society savings or otherwise to put capital aside. Furthermore, a reputable bank will grant a loan to a future client only if it also has some equity capital.

As a rule of thumb, around 20% of the total costs should already be available from your own resources – the more, the better, of course, as the loan is lower. Especially since a financing without any equity owns a much too high financial risk, unless you are just one of the good earners.

In addition, banks typically charge higher interest rates when there is little equity available – again, this has to do with the greater risk the bank would take.

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How to find the right bank – and which real estate loan is the best?

How to find the right bank - and which real estate loan is the best?

Because there are now an infinite number of banks that offer real estate loans, it can quickly be a challenge for prospective buyers to find the right offer. First and foremost, of course, you should first inquire at your own house bank.

Here one has usually the best chances on a loan, if one has been so far a reliable and longtime customer – if one still has a personal connection to the coworkers, this is only of advantage for the lending. Nevertheless, it pays off to take a closer look at the offers of other banks at the same time.

Today, it is particularly easy to compare the interest rates and loan offers of individual banks over the Internet. Different portals offer a practical loan calculator in which only a few data have to be entered – such as the term and the desired loan amount.

Subsequently, this information is evaluated immediately and you get a clear table with all the banks that offer real estate loans. Now you have to choose only the most attractive offer.

Not only the interest decides

It is very important not only to be guided by a low interest rate, but also to check the remaining conditions. Read the fine print carefully and ask if anything is unclear – even more so if you already want to sign a contract.

Regarding the term of the own budget should be considered: A longer term is monthly pleasant for the purse, but also brings more interest costs and thus a longer repayment with it. Basically, a home should be fully paid off in a maximum of 20 to 30 years – so choose a property that fits into your own budget.

If you have a personal conversation with the respective bank, it is also advisable to prepare good arguments in advance for the loan. In addition, bring proof of income directly to the deadline to ensure your own liquidity. In this way, the chances of a real estate loan are high – and the dream of the house is nothing in the way.