Banks like to offer their customers low interest rates, especially for mortgage lending. But by no means is the loan interest rate as cheap as it could be. There are ways and ways to bring it down. The following three tips show concrete possibilities for interest and thus cost reduction, which every budding client and homebuyer should know.


Optimize the loan

Optimize the loan

The lending expresses the relationship between the loan amount and the value of the property. The lower the loan, the lower the risk of the bank, which in turn leads to a better interest rate.

However, the interest rate is not linearly linked to the loan. Numerous banks work with the interest calculation with so-called lending limits, ie there can be several levels. If you fall below a level, it will be cheaper. Potential borrowers should therefore ask whether it may be worthwhile to use a little more equity or to slightly lower the loan amount. Maybe the interest rate will be cheaper.


Integrate short-term interest rates

Especially for larger financing projects, it may be an option not to take one loan, but several. There is a split into two or three loans with different fixed interest rates (maturities). Lower interest rates often promise an interest rate advantage.

For example, it would be conceivable to realize most of the financing with a loan that has a ten-year fixed interest rate. A smaller part will only be completed with a five-year fixed interest rate. So it comes to a nice saving effect. However, it should be possible to repay the smaller loan at the end of the fixed interest period if necessary (eg as a special repayment) in order to avoid imminent additional costs in the event of increased market interest rates.


Independent interest rate comparison

Independent interest rate comparison

There are still many prospective homeowners who trust their bank unconditionally and therefore do not seek any comparison offers. This is risky because it is not unusual for direct banks to offer better loan conditions.

Consequently, it is advisable to make an independent interest rate comparison. Our financial advisors help with this, they take into account financing offers from more than 400 banking partners. Interested parties do not take any risks, the advice is free.

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