A mortgage loan – often referred to as a mortgage loan – is a classic real estate loan. In contrast to a residential loan, installment loan or consumer loan, a mortgage loan is entered in the land register.
A mortgage loan (“mortgage”) is usually linked to a security by the respective property, ie apartment, house or property, which secures the repayment and interest payments in the event of default. The bank therefore has the option of registering in the land register through a mortgage or lien if the equity is not sufficient to finance it. This offers the bank additional security, because if you as a borrower fail to meet your loan obligation, the bank has the option of using the deposit to repay the loan.
As a rule, an entry is made in the land register up to the agreed loan amount, but it can also be used for larger sums, for example for additional equipment or a later expansion of the property.
Of course, as with any home loan, mortgage loans are only granted to borrowers with sufficient credit ratings. In addition to the income and the general financial situation, the bank also checks the properties that are to be financed. For example in terms of location and construction, the year of construction or the equipment.
Tips for financing talks
A mortgage loan is a life loan for most of us. You should be careful when negotiating a mortgage loan. Insist on a sample offer from your bank during the first meeting. This “European Standard Information for Loans” is specified in Austria according to the Consumer Credit Act. It clarifies the most important key points and terms of financing and offers you a precise overview of the interest, expenses and contractual terms of the respective mortgage loan right from the start of the mortgage.
Before signing the contract, you have the right to view a free binding draft credit contract with all the binding terms of the loan. You should definitely use this to carefully check all conditions and contractual clauses.
If you want or need to finance your mortgage loan with other borrowers or need a guarantor to finance it, you should always clarify the conditions under which the personally liable persons can be released from the loan agreement.
The interest rate development in real estate financing: interest charts
How did interest rates develop in a historical comparison? The Cream Finance interest rate charts give you an overview of the development of real estate interest rates.
Use the historically favorable interest rate level! But find out here in advance about the development of building rates and current mortgage rates. We show an overview of current conditions and previous developments. Convince yourself:
How to get your mortgage loan
An online comparison for mortgage loans is quick and very easy: enter the financing reason, net loan amount and term – done. You already get a first overview of the offers with monthly loan installments and total debt. You can refine or narrow down the selection of offers for your mortgage lending by providing further information on equity, postcode area and fixed interest rates (fixed or variable).
If you need financing, the first thing to do is of course to compare the terms of the mortgage loan. Regardless of whether you need the mortgage loan to finance a house or a condominium, with an online comparison in real estate financing – which usually runs over many years or even decades – you can easily save a few thousand euros in interest.
Secure the historically very low interest rates for your building money! The interest comparison is worthwhile for your real estate financing: Your Interhyp financing advisor offers you the right solution from the offers of over 20 lenders in a direct comparison.