You are considering or have already decided to purchase a property with the help of financing. But what is next? The first step is the financing inquiry. For this, you can contact your house bank, inquire with other banks or, alternatively, commission a mortgage broker who obtains offers from various credit institutions. But how high should the amortization rate be and what loan term should be set? Here – you have probably thought it – no generally valid statement can be made. Roughly speaking, there are two options, although these should be considered on an individual basis – ideally with the involvement of a mortgage broker:

1. The monthly amortization rate includes a principal payment and an interest payment. The ratio changes annually, depending on the balance of the loan. The loan is settled with the final payoff.
2. The term is set at five, ten, fifteen or twenty years, and the monthly amortization rate is composed of the predetermined amortization amount plus interest of approximately 2% to 10% percent. At the end of the loan term, the property may not have been fully paid off and consequently follow-up financing may be required. This type of financing is also suitable for investors who wish to sell their property within the loan term or at the end of the loan.