With favorable building interest on customer catch
How banks with a favorable construction interest on customer catch go?
Skillfully banks go with a favorable construction interest rate on customer catching. Real estates buy or building was rarely as favorable as now. A low construction interest rate for construction loan and mortgage, as well as government subsidy programs make a real estate purchase more attractive than ever before. But so favorable is the construction interest on balance then usually but not. Have you ever looked closely at such a prospectus? The information on the construction interest rate is always provided with an asterisk. In addition, the note "Sufficient creditworthiness provided". So, or so similarly formulated. In plain language: Only those who have a first-class credit rating, in the opinion of the bank, will get such a construction interest rate.
Why you do not get a top construction interest rate
As a rule, only the customers receive a top construction interest rate, who usually do not need it. So builders with high equity without unscheduled repayment and other extras. If one lets itself make a personal credit offer of the bank, then the personal building interest rate is far from higher. Often there is a lack of sufficient equity to get a top construction interest rate. In addition, there are significant costs associated with the purchase, known as ancillary purchase costs. Far too often, these costs are not sufficiently taken into account in a funding. Incidental purchase costs are land transfer tax, notary, land register and real estate agent, if you have hired a real estate agent. So between 5 and 12% of the purchase price is quickly added on in ancillary purchase costs.