Lowest possible term

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The strategy of the shortest possible term for a construction financing is interesting for those builders who want to have paid off their construction financing with the available resources as quickly as possible. You can learn how to effectively pay off a construction loan in the shortest amount of time here.

What factors determine the term of construction financing?

Basically, the term of a construction financing is regulated by the amount of repayment and the interest saved. The higher the repayment rate, the higher the interest saved, which is paid within the framework of the respective annuity, or. do not have to be paid.

With an assumed loan amount of 200.000 € and an interest rate of 5%, the term is approx.:

at a repayment of 1% = 29 years
with a repayment of 2% = 26 years
at a repayment of 3% = 21 years

Unscheduled repayments

These terms can be further reduced by unscheduled repayments. You can find examples of this and other interest and repayment tables in our Tips & Tricks section under Repayment Tables.

Special agreements are required for unscheduled repayments within the framework of the respective loan agreement.

In the case of a construction loan with variable interest rates, an unscheduled repayment can be made at any time with a three-month notice period (partial termination of the relevant part of the loan).

For loans with an agreed fixed-interest period of up to 10 years, unscheduled repayments can only be made if this has been explicitly agreed upon.

If the construction financing has a fixed interest rate period of more than 10 years, the unscheduled repayment is always possible after the 10 years due to a partial termination with a 6-month notice period. With many insurance companies, it is usually not possible to agree unscheduled repayments even within the 10-year fixed interest period.

One must include thus also this aspect with the comparison of the financing conditions.

In order to make this comparison, we present here again 4 financing institutes, with which you should obtain offers, with all four of them. Only in this way you have the optimal comparison possibilities. Don't be afraid to consult with institutions by phone, if necessary, to apply the strategic considerations addressed here.

Find the right offers here!

Rather buy than pay rent? A good investment? What strategy do you pursue? Here you can request the corresponding offers!

Seize your chance and benefit from favorable interest rates. Finance your own home now!