Varying Loan – For Flexible. In the case of interim financing, you receive a variable interest rate that is not committed for a certain period of time. The variable rate loans are characterized by the fact that the fixed interest period is limited to three months. A variable rate loan is a variable loan. A partially variable bond offers the borrower some flexibility and security at the same time.

Variable credit / CAP | Property financing 

Variable credit / CAP | Property financing Bettina Lindner

With a CAP loan you also have a variable interest rate. By agreeing to a GAP premium, you receive interest payments up to a specified maximum and, if necessary, minimum interest rate. When calculating the cap premium, the maturities and the fluctuation range of the interest rates are taken into account. With this loan, you can carry out unscheduled repayments or pay them in full.

Finding the optimal mortgage

Finding the optimal mortgage

For building financing, we can choose from a range of different loans. The loan is repaid in constant, mostly monthly installments () (rarely quarterly or half-yearly installments). Due to the continual repayment, the interest-bearing loan amount is gradually reduced, so that the repayment share increases and the interest expense decreases. The interest payable will be adjusted to the relevant interest rate level every three years during the term of a variable loan.

The basis for the interest rate change is the so-called 3-month Best Bank. In this case, the interest adjustment date is set. It is a reference rate at which credit institutions lend each other money. A term loan is the early conclusion of a follow-up financing for a loan expiring in the next 60 months. The payout amount occurs when the contract for the expiring loan is terminated.

The balance of the old loan is offset against the loan amount of the new loan. In the forward period, you will not be charged any additional fees, such as: For example, interest or provision fees. The permanent loan is a mixture of a pre-financing and a building loan, which works as described below: At the same time a surcharge is paid into a contract. As long as the contract is not allocated: You pay the monthly fixed rate in the contract as savings and in the advance financing as loan interest.

If the Lite Lender contract is awarded: The advance payment is partially repaid with the maturing building capital. The unchanged monthly installment will now also finance the interest and principal payments for the home savings loan. A cap loan is a variable rate mortgage loan with a cap-limit. It combines the interest rate stability of a long-term classic annuity loan with the wide range and low interest rates of variable loans.

The interest is not fixed for five or ten years as in a classic loan, but is adjusted every three or six years to the current interest rate. The contractual basis for the interest rate change is the so-called Best Bank. It is a reference rate at which credit institutions lend each other money.

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