Building societies allowed to make loans without land title collateral up to 50.000 euros. This sog. Blank loans are particularly suitable for long-term financing of modernization measures. Long terms and flexible unscheduled repayment options go easy on the monthly budget.
Blank loans from building societies are pre-financed building savings contracts. In this case you receive a loan of up to 50 % from the building society.000 euros. For this loan you pay the agreed interest and at the same time conclude a building savings contract in the same amount. You save this building savings contract in parallel with the loan. As soon as you have reached the required minimum balance, the bauspar contract can be allocated and replaces the pre-financing loan with the balance and the actual bauspar loan. This sounds "a bisserl" complicated, but is actually quite simple.
The sense and nonsense of bauspar contracts and their pre-financing can be debated for a long time. The model is afflicted with many prejudices, which still originate from times of generally high interest rates. In the current interest rate environment, however, unsecured loans can actually be a good and favorable alternative to the so-called "home loans". Be owner loan. In the end, this is purely a math exercise.
Advantages of a blank loan
- in contrast to classic real estate financing, the application process is greatly simplified
- no land register security required (therefore "blank loan")
- Unlike installment loans, long terms with low monthly payments
- after allocation the building society loan can be repaid very flexibly
- Capital investors may benefit. from (small) tax advantages
Disadvantages of a blank loan
- usually only feasible if you have been a property owner for at least a year (so usually not suitable for sog. (e.g., for refinancing new buildings); but there are also some offers for tenants!
- the sog. Allocation of the building society contract may or may not take place. may not be guaranteed (delays can lead to an extension of the total term)
- with non-genuine blank loans, delays in allocation can lead to significantly higher interest costs or the "bursting" of the financing model
Unreal blank loans?
We speak of non-genuine blank loans if you take out a loan with bank A and make it repayment-free. Instead of repaying the loan directly, you save up "some" building savings contract, which is then supposed to replace the bank loan once it has been allotted. The model is fundamentally no different from a true blank loan. The difference lies in two important details:
- If the allocation of the bauspar contract is delayed, Bank A may call in the loan at the end of the agreed term; if it is not possible to redeem the loan using the bauspar balance and the bauspar loan, this can be expensive, because the amount must then be financed further by Bank A (conditions/conditions?)
- When the building society contract is allocated, the building society checks the borrower's creditworthiness; if the creditworthiness is not sufficient from the building society's point of view at that time, the building society loan will not be granted. In this case you get paid your balance, but what about the missing building loan? This would have to be obtained elsewhere, which is difficult if the building society does not want to give you a loan.
The offers from various banks and building societies are not particularly clear and sometimes difficult to navigate, even for experts. There it comes u.a. Depends on choosing the right home savings plan. Getting and keeping track here is not easy.
When financing modernization measures, we examine all available financing options. This includes the blank loans from our various bank or. Home savings partner. However, we limit ourselves there mostly to real blank loans. We will discuss openly and honestly whether such a blank loan is suitable for you and your financing needs. After all, we don't have to sell you certain products from certain providers.