Building society with pitfalls

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The loan allows consumers even without the otherwise necessary equity, the inclusion of a real estate loan. For this purpose, the loan is combined with a home savings contract. What sounds like a quick way home, however, can be significantly more expensive than the traditional mortgage lending.

With the loan Bausparkassen now offer a way even without a long Ansparphase to buy a house or a condominium. For this purpose, the classic principle of the home savings contract is modified. While homeowners usually save first, then get a loan and then pay off, consumers with the Bauspar immediate financing immediately a loan to buy the property. After that, they do not pay off the loan, but only pay for the accrued interest . At the same time a home savings contract is spared, with which then at the end of the loan is paid.

How cheap is a Bauspar immediate financing?

One might think that the loan is worthwhile in view of the low interest rates. Indeed, building and loan associations often guarantee a low interest rate on the loan for the duration of the contract. However, only a small credit balance is due to the Bauspar contract.

In addition, the actual costs of home savings financing can hardly be recognized . Because the interest on loans and Bauspar contract can not be easily netted with each other. As a rule, it is not possible to estimate the total effective interest rate. Since the providers often do not provide any binding information, there is not only the risk that home savings financing is far more expensive than can be seen at first glance. The offers of the various building societies are also not comparable.

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loan: If the special repayment has negative effects

The Bausparkassen, which offer loan, often advertise with possible special repayments . However, as explained by the Consumer Council of North Rhine-Westphalia, this option harbors pitfalls. Because the unscheduled deposit in the Bauspar contract shortens the low-interest building loan phase. This increases the total effective interest rate . The supposed advantage turns out to be a preference with a negative side effect.

Öko-Test examines the Bauspar immediate financing

Last year, the consumer magazine Öko-Test published a test for building society immediate financing. Overall , the testers came to a positive rating . They also point out that immediate financing is beneficial given the persistently low interest rates and that providers often guarantee these low interest rates over the long term. However, the contracts are often very inflexible according to eco-test . This can be a problem especially if the funding is to be terminated prematurely.

Alternatives to Bauspar immediate financing

Due to the lack of transparency in building society immediate financing, consumer advocates advise to make better use of classic real estate financing. Here you can compare the offers of the banks on the one hand . On the other hand, consumers receive reliable information on the total effective interest rate and thus the expected cost of the home loan.

However, consumers should already have financial reserves for this form of financing. Even if mortgage lending without capital is possible in principle, it is not advisable due to high costs . It is also worth to wait. Because with sufficiently high equity, consumers can agree much better terms with the bank.