The right loan

There are a number of different types of loans in Germany. We have summarized the most important ones for you here.

4 species explained


Loan Types - 1. Annuity Loan

The annuity loan is probably the type of loan most frequently chosen in Germany. The so-called annuity, i.e. the installment, consists of an interest and a repayment component. The loan is paid off in equal installments. Since the interest is always only calculated on the outstanding loan amount, the amount of the repayment increases over time, while the interest payments decrease. The borrowing rate for this type of loan is usually fixed for ten or 15 years. During the fixed-interest period, the annuity loan guarantees a very high level of planning security, because you know your rate and you know exactly how high the remaining debt will be at the end of the term.


Here it can happen relatively quickly that you take a dangerous path under the influence of various comparison portals. Even if it is apparently possible to carry out a quick and easy comparison using various providers and thus find the best offer directly, experience has shown that this is difficult in practice. One of our consultants will show you various options in personal contact and enable you to compare specific offers tailored to your needs.


Loan Types - 2. Constant loan

There are different design options for constant loans. In essence, however, it is always about securing the conditions for the entire term at the time of conclusion. This construct consists of two contracts. There is a loan and a home savings contract. First, the final loan is paid out, for which only the interest is paid during the term. At the same time, monthly payments are made into a home savings contract. When it is allocated, the building savings sum is used to replace the first loan, which is then followed by the repayment of the building society loan. The interest rate and the rate are fixed from the beginning for the entire term.


Types of loans - 3. Combination loan

Among the loan types, the combination loan is a hybrid. As the name suggests, a combination loan is a combination of a loan with a fixed interest rate and a special repayment loan with a variable debit interest rate. As a result, it is possible to make additional special repayments at any time despite a fixed rate. In practice, many different variations are possible within this constellation.


Types of Loans - 4. Variable Loans

For variable loans, the borrowing rate is usually reset every three months. This variable interest rate is usually based on the current money market interest rate. The risk of a rising interest rate is offset by extensive unscheduled repayment options and brief notice periods. In addition, most banks also offer the right to convert to a loan with a fixed borrowing rate. In special forms, the interest rate risk can be limited from a certain value with a so-called cap. We would be happy to consider together which loan is best for you. It’s best to form your own opinion and test us!

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Your benefits

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  • Capital gain

  • Value stability

  • Tax benefits

  • Financing

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