How does an annuity loan work?
Just relax: When financing your real estate, secure yourself fixed interest rates, while repaying your loan payments over a regular period. This gives you all-important assurance when planning ahead.
- Interest rates remain low
- No interest rate risk with follow-up financing
- Repayment of the loan in full by the end of the fixed-interest period
You pay back monthly or quarterly instalments of the same size (the annuity), consisting of a loan repayment portion and an interest portion. For annuity loans, the interest rate charged is agreed for a certain fixed-interest period. Terms of 5 to 15 years are common, but shorter or longer loan periods are also possible. As repayments are made, the interest portion of the annuity decreases, while the repayment portion increases accordingly. This means that the interest saved can be used for additional debt repayment. Repayment can be deferred for a maximum of 15 years. Only then do you start repaying your loan. If you have not repaid it in full by the end of the agreed loan period, you will need to take out additional financing for the remainder of the loan.
How does the loan with special repayment work?
This is how the loan works with the special repayment option:
- Housing loans with fixed interest rates of between 10 and 30 years
- Annuity loans of between €40,000 and €1 million with regular payments of up to a maximum of 5 per cent p.a..
- Each year, you have the one-off option to repay a maximum of 5 per cent of the original loan amount during the first interest rate period. You can choose the timing as you wish.
- Alternatively, you can opt for the one-off option to repay a maximum of 10 per cent of the original loan amount as of the sixth year of the interest rate period. You can choose the timing as you wish.
How does the Forward-starting loan work?
Our real estate financing solutions mean that you don’t have to sacrifice the smaller pleasures in life. With a favourable follow-up financing, you will benefit from favourable interest rates as well as increasing your financial leeway. We are offering this solution for follow-up financings within the next 60 months with our forward-starting loan VR-BaufiForward. The fixed interest rate period for your existing loan expires in 6 to 60 months. Do you want to secure the current low interest rates for your follow-up financing right now? With our VR-BaufiForward forward-starting loan you can fix the terms of your follow-up financing up to 60 months in advance. Your local cooperative bank will be happy to advise you on our forward-starting loan product. Your local contact person is listed in the branch finder at vr.de.
How does the loan with Eco work?
With our Eco product feature, you can finance your sustainable property with a maximum final energy requirement of 50 kWh/(m²a). The product feature is available for our entire product range. Proof of the maximum final energy requirement is provided at the time of application on the basis of an energy certificate in accordance with the Building Energy Act (GEG). In addition to the immediate benefits of favorable construction financing, you benefit in the long term from savings through lower energy costs and sustainable value retention of your property.
How does RegioFlex work?
Use our regional interest rate advantage to finance your construction project - whether you are planning the purchase, construction or modernisation of a property. This is what we can offer you:
- Interest rate reduction of up to 0.20 per cent p.a. (valid for fixed interest rates from 3 to 30 years)
- Annual repayment of at least 2 per cent (valid for housing financing in retail banking, loans of up to €1 million and initial and follow-up financing)
How does promoting work?
In addition to your principal bank, KfW (Kreditanstalt für Wiederaufbau), the largest German promotional bank, offers low-interest loans and grants for construction financing. In order to take advantage of the maximum possible funding available to you, you can combine the promotional programmes we offer.
The building finance specialists at your local cooperative bank will be happy to give you comprehensive advice on the products offered by DZ HYP. Your local contact person is listed in the branch finder at vr.de.
Our services
DZ HYP works closely with the local cooperative banks in retail banking. Our services include first-time and follow-up financings – for new construction, purchase, or refurbishment.
