Following increased inflation and higher interest rates, banks are now setting significantly higher requirements – especially in terms of equity and creditworthiness. Nevertheless, banks are willing to grant loans. Those who are well prepared can be successful.
Despite stricter credit requirements, buying a property is by no means as hopeless as you might think at first glance. This is because real estate prices vary greatly from region to region. More detailed research often reveals that property prices in some areas are in a realistic relationship to local incomes. This also offers more realistic financing options.
Especially in times of high rental costs, it is worth taking a look at buying: if you convert your monthly rent into a loan installment, you can benefit in the long term from independence from the rental market.
In addition, the banks’ creditworthiness criteria vary considerably. While some institutions have very strict requirements, others are much more flexible – a targeted comparison and negotiations with several providers can therefore make all the difference.
Despite the current economic situation – home ownership still makes sense
Despite economic uncertainties, buying your own home offers many advantages – especially as a retirement provision. Even if rents rise, as is currently the case, the monthly loan installment remains predictable. If you pay off your home by the time you retire, you live rent-free and reduce your fixed costs considerably.
In addition, home ownership is considered a stable investment that protects against inflation and can increase in value in the long term. Government subsidies such as KfW loans, the “Wohn-Riester” scheme or tax benefits when buying and renovating make it easier to purchase. Tradesmen’s costs are also tax-deductible. In addition to financial benefits, ownership offers more security and freedom. No rent increases, no notices to quit – and renovations can be carried out according to your own wishes.
An experienced broker: your path to optimal financing
An experienced real estate agent can make the path to home financing much easier. Thanks to close cooperation with financing service providers, many estate agents are familiar with regional financing opportunities. Get individual advice and check your options – because the dream of owning your own home is often more tangible than it initially seems. A broker can also recommend an expert in funding opportunities. This way, you not only benefit from optimal loan conditions, but also from a tailor-made financing strategy.
Contact us for a no-obligation consultation and discover which financing models are right for your specific situation.
Note
The generic masculine is used in this text to improve readability. Female and other gender identities are explicitly included where this is necessary for the statement.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific individual case.
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