January 31, 2020

Finance home ownership with the home loan contract

For many building owners, the building society contract is a pillar for financing their own four walls. The advantages of this form of financing lie in the favorable conditions with simultaneous subsidies in the form of subsidies from the state. Home savings contracts from different providers differ in terms of terms, minimum contract term and home savings total. A comprehensive comparison quickly sheds light on the situation and should be carried out before the contract is signed.


Building savings: This must be taken into account

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Before a future builder decides to conclude a home savings contract with the house bank, the offers of other providers should also be carefully examined. Each financial institution works with certain building societies or has its own divisions within the company that deal exclusively with this form of financing. In this way, customers do not always come at the most favorable conditions. In this case, an examination offers the opportunity to save money. In particular, there are significant differences when it comes to minimum savings and savings.

There are also differences in the method of payment. The usual payment for building savings with a building society is the monthly payment of a certain amount. It is not uncommon for other providers to offer quarterly or half-yearly payments of a fixed amount. The amount of the home loan savings is also very important. If you want to move into your own home with home savings, you need a correspondingly high sum so that the often immense costs can be paid. Half of the amount is generally to be saved in building savings. Against this background, clients should set realistic goals based on their own income and the possible monthly savings.


State funding: The housing premium

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Up to a certain income limit, home savers benefit from state subsidies for home savings. The so-called housing premium is paid out annually to help you achieve your savings target more quickly. If the employer pays non-cash benefits, it is possible to pay these additional financial benefits into a home savings contract. Savers can benefit from further state subsidies through the employee savings allowance. Here, too, certain income limits apply, which must not be exceeded for the payment of these subsidies.


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