Cheap home financing with online interest rate comparison for Austria
The home loan is often referred to as a real estate loan or mortgage lending. Such a loan is secured by the property itself and is usually long-term. The term is usually 10, 15 or more years. This depends on the financial performance of the borrower and the amount of the purchase of a property.
Decisive for house loans
You should not confuse the terms term and fixed interest rate with each other. While the term may well be 30 years, the interest rate is usually only fixed over a shorter period, such as 10 or 15 years.
This is followed by so-called follow-up financing to repay the remaining loan amount. A second fixed interest rate is a normal process here, which over 90 percent of all borrowers in Austria also use.
The interest rate for house financing depends on the reference interest rate Good Finance or the base rate of the Good Finance (GFB), which is adjusted regularly. Consumers can currently benefit from a very low-interest rate level, ideally suited to start cheap home financing.
The security for such a home loan is not, for example, an assignment of salary.
What are the advantages of a home loan comparison?
The biggest advantage that you have when comparing interest rates with a home finance calculator is the daily up-to-date view of the construction rates of all well-known providers in Austria.
These have been at historically low levels for many years, making home and apartment financing unprecedentedly cheap. Of course, you could simply apply for your house financing at the local branch bank and accept the conditions there.
However, house banks rarely actually offer you the best interest rates, which you can find on the free market by comparison.
In the home loan comparison, you can conveniently explore the conditions and interest rates of many well-known banks from home and can compare them directly with those of your local bank. You will find 99% of the time:
Here you will find a better interest rate and now have the option of either requesting and concluding better conditions online. Or you can confront your old bank with the new, better offer.
If your bank does not submit an improved interest rate model, you can use the other offer and reschedule your building loan.
Your advantages with the home loan comparison at a glance:
- Optimal and up-to-date market overview
- Simple interest rate comparison of many different banks
- Possible savings of several thousand euros
- Little time and immediate online request
- Exclusively experienced reputable providers
What are the home finance options in Austria?
There are many financing options available for a home loan in Austria. The most popular is certainly the classic annuity loan, which guarantees a constant monthly rate across the entire fixed interest rate. But depending on your individual financial situation, purpose or other factors, other options may also be advantageous for you. The following loan options are available:
Annuity loan: The annuity loan is the standard form of home financing and has a constant monthly rate. The annuity, so to speak the annual rate, is spread over twelve months in order to be able to pay off the house loan constantly at equal amounts. An annuity consists of an interest and a redemption component.
At the beginning of the fixed interest rate, the interest rate clearly outweighs the repayment. As the maturity progresses, however, you always pay off the remaining debt, which means that the interest portion becomes ever lower. This leaves more money for the actual repayment of the loan amount:
Advantages: The repayment portion increases with maturity. Great planning security thanks to long fixed interest rates. The sum for any follow-up financing has already been determined.
Disadvantages: Not very flexible, since it is difficult for you to react to a better interest rate or to pay off a large part of the remaining debt. The long rate lock fixes you long on a provider and interest rate.