For most people, buying a property is one of the biggest financial decisions of their lives. A sound home financing plan (Baufinanzierung) is its foundation. It sets your monthly burden and your long-term financial stability for many years.
Home financing covers all forms of borrowed funds for buying, building or modernising property: classic annuity loans (Annuitätendarlehen), building society savings contracts (Bausparverträge), KfW promotional loans and combinations of these. The right structure depends on your equity, what you can afford each month, current interest rates and your long-term plans.
One deciding factor is the fixed-interest period (Zinsbindung): if you choose a long one today, you lock in current terms for many years. That protects you against rising rates in future. At the same time, the repayment rate should be set so that the loan is paid off within a manageable period and special repayment options can be used.
Government support is becoming more important in home financing: KfW programmes for energy-efficient building and renovation, BAFA grants for heating modernisation and regional funding programmes can cut the total cost considerably. A careful combination of these building blocks can save thousands of euros.
We support you in protecting your property and help you understand the financing structure and link suitable protection products, such as term life insurance (Risikolebensversicherung) or occupational disability insurance (Berufsunfähigkeitsversicherung), to the financing.
Home financing benefits
Baufinanzierung Klassik:
- Loan amount: €75,000 to under 1 million euros
- Financing limit: up to 90% of market value
- Occupational groups: all
- Property type: 1- to 3-family house, owner-occupied flat, residential use
- Own labour: no restriction
- Fixed-interest period 5 to 40 years
- Annuity loan: initial repayment up to 10%
- Options: special repayment 1-5%, right of early repayment, financial protection
Baufinanzierung Basis:
- Loan amount: €75,000 to under €400,000
- Financing limit: up to 80% of market value
- Occupational groups: employees, civil servants, workers, self-employed doctors, pharmacists, tax advisers, auditors
- Own labour: max. €30,000
- One fixed-interest period
Loan types:
- Full-repayment loan: payment with no remaining debt, lending rate discount of 0.10 percentage points
- Annuity loan: constant monthly instalment
- Follow-on financing: forward loan up to 36 months in advance
- Bridging finance: closes funding gaps
Loan purposes: property purchase, new build, modernisation, renovation, conversion/extension
Home financing guide
Five good reasons for Allianz home financing:
- Attractive terms: long fixed-interest periods, discount campaigns, subsidies. A full-repayment loan gets a lending rate discount of 0.10 percentage points.
- Long-term rate security: a constant monthly instalment whatever happens to interest rates.
- Flexibility: changing the repayment rate and suspending repayments are possible.
- Subsidies: KfW and BAFA programmes are compatible.
- Financial security: protection for your family, the financing and the property.
Energy-efficient renovation: when buying an existing property, check the energy efficiency class. Measures: new heating, windows, roof, insulation, photovoltaics/solar thermal, ventilation system.
BestAger financing: for owners aged 55 and over with a paid-off property. Loans of up to 40% of the property value for energy-efficient modernisation.
Protection against life risks: term life insurance, occupational disability insurance, accident insurance, buildings/home contents insurance, home financing protection letter (Baufinanzierungs-Schutzbrief).
