Today I have a question about home-loans: I started saving money to raise a small capital in order to submit a request for a loan and since I am totally new to this topic (and some language barriers don't make learning easier), I would like to ask for some advice here.
First things first: I live and work (permanent contract - or "unbefristet") in Germany (I am registered - or "angemeldet" - too), I pay my taxes here and would like to get a loan in a German bank.
I am not German myself, but I do come from a EU country in the Schengen area.
- To what should I pay the most attention?
- What kind of credit is it better to ask for?
- How much money should I save to get a loan (are there any banks that offer a 90% loan)?
- How would I calculate money to spend on furniture, electrical appliances, notary, taxes, ect. ?
- How should I choose interests?
Thanks in advance for all the help you can give me!
EDIT: Thanks for your answers first of all. Quite a lot of time passed since I wrote this question and I had the opportunity to arrange a couple of meeting with 2 different banks. I found out the following:
- There are banks who offer up to 100% loans (which are of course more expensive)
- If I get to cover at least 10% of the house value, the interests get to be... interesting (of course I need to cover all the costs described in the point below too)
- 9%-10% is a correct estimation of "accessory" costs, if a "Makler" (intermediary, which costs 3,57%) is included
- Interest usually have a 5 or 10 years period during which they don't change (if I'd choose a 5 years period, I would get lower interests at first)
Now, provided that I am not a major "saver" and that I live at the moment in a rented house, which I consider a silly expense, I am not going to wait to cover more than 10% with my initial capital. I would also like to point out that I live in Bavaria.
Having written all of this, here is what I asked and had a couple offers for:
- 400.000€ Value of the real estate (this is a good estimation)
- Real estate is an apartment near town
- Apartment is 90 to 110 m²
- I have 40.000 as capital
With these basis the best offer I've had involved an interest of 2.0%, with a 10 years fixed interest.
Yesterday I spoke with my father (living in country where I am from) about this and he asked me what the bank spread was... "Wait... what?". Is there another % to be considered too?
How do you find this offer?
I was also proposed a "Bausparvertrag" and a "Hausriester". What are the differences? Should I be doing one of those (major pro is basically that I won't pay taxes on the deposited sum)?