Anyone planning construction financing in 2021 faces many challenges. On the one hand, the booming real estate market with ever new price records – in the meantime, not only large cities are affected, but also rural areas with good infrastructure and transport links. On the other hand, there is less and less building land available. Banks have also tightened credit rules, making it increasingly difficult for middle-income families to obtain a construction loan. The good news: the interest rate remains very favorable. Furthermore, attractive federal, state and local government subsidy programs are available. And household incomes have increased in recent years. This brief comparison shows that construction financing is a complex matter that should be well considered.
Construction financing 2020 – volumes have risen sharply
In December 2020, the Deutsche Presse-Agentur reported that the Association of Private Home Loan and Savings Banks expects a 15 percent increase in new business compared to the previous year. At the same time, this increase means that for the first time in history, the volume of financing exceeds the 30 billion mark.
In addition to environmental conditions, political developments also play a role, of course. Because this directly influences the interest and investment policy of the states. Thus, a freeze on the mini interest rates was decided in recent weeks. Analysts see the reason for this in the political and economic uncertainties, above all because of the effects of the pandemic, which is not expected to be fully realized until the third quarter. In the fourth quarter become fully visible. But of course global factors also play a role and the resulting imponderables in world trade. These factors make it almost impossible to predict the correct development of interest rates until the end of the year. One will be able to assume, however, for the time being that the interest rates remain very favorable. How it goes on afterwards, depends above all on, which economic late consequences are to be determined after end of the Pandemie.
Construction financing 2021 – repay more and choose a long fixed-interest period
2021 real estate financing will continue at a high level. Because the continued stable economic situation in Germany during the pandemic, as well as the particularly favorable interest rates still offer a safe financing environment. Even if the cost increases for real estate purchase and new building weaken slightly, it is to be assumed that these will continue in the future – more moderately than recently. Since one should assume therefore from further rising purchase costs, it is recommended at present to lock building financing with as high a repayment as possible and with as long-term an interest connection as possible. Higher repayments to be debt-free more quickly. And long-term fixed interest rates to be protected against a future increase in interest rates. Particularly in a rather uncertain economic surrounding field a plan and calculable loan repayment brings more security. Just like a long fixed interest, because with it one uses the current favorable interest also still in 15 or 20 years.
Construction financing 2021 – without experts it does not go
As the interest rate market remains at a very low level, the higher acquisition and construction costs can be partially compensated for. To take perfect advantage of the low-interest environment, a construction financing advisor with the appropriate expertise must be able to offer intelligent real estate financing consisting of several building blocks: z. B. KfW loans, regional subsidies, combinations with building society savings and Wohn-Riester, Baukindergeld, flexible interim financing or even combined loans. These multi-stage financing concepts require a network of specialized experts. And compare different offers.
Also important: talk to construction finance brokers who are independent of banks. They can freely probe the credit market according to in-house specifications and independently determine the best offers for you,. accedo AG not only offers a daily comparison of over 400 bank offers, but is also part of a large network of experts that covers all areas of construction financing. This is how you combine know-how, quality of advice, independent consulting and individual service in order to be supported with new financing concepts in a sustainable and forward-looking way. In addition to obtaining offers from one's own house bank, it is nowadays actually obligatory to contact other proven competent and certified (online) intermediaries.
Construction financing 2021 – online brokers continue to grow
With this concept, many brokers and their associated partners have succeeded in growing more strongly than dBanken in 2020. It is safe to assume that this trend will continue in 2021. Also proof that it is still possible to fulfill the dream of home ownership for many interested parties in an increasingly difficult environment. The secret of success? Acting independently of banks. It is not always the most favorable interest rate that leads to success. Ultimately, it's all about long-term security for the customer. Those who meet the increased demands and convince with exceptional consulting quality and excellent service can also distinguish themselves from direct competitors, such as z. B. the local banks, stand out clearly. The experience of the last year shows: If the triad of expert knowledge, personal service and sound advice is observed, then construction financing on a secure and sustainable basis is possible today and in the future.
Conclusion: Construction financing 2021 – still favorable and secure
You might say: if not now, when?? Thanks to funding opportunities and cleverly combined loan offers, feasible monthly charges are still possible with a special focus on becoming debt-free as quickly as possible. It is important that prospective home buyers do not rely on the first offer they get. To get a comprehensive view of the credit market, isollten at least 3 offers to be obtained. Only after several consultation discussions and a founded concept comparison the prospective customer should make then its financing decision. And by the way, this is also possible before you have found a property or the building site. And the best thing about it: reputable and bank-independent construction financing brokers like accedo AG provide guaranteed advice free of charge.
If you want to finance construction in 2021, you need to pay attention to repayment and term, and seek advice from independent banks to finance securely.