General Information About Financing Property

Do you want to build, buy, modernise or find an attractive follow-up loan for an existing property? Thanks to our individually tailored products, you can be sure that MünchenerHyp has the right financing solution for your needs. No matter if you are interested in a condominium, one or two-family houses, or multi-family houses, or if you want to live in the property yourself or rent it out.

Overview of the Various Ways to Structure your Financing

Fixed-interest Terms

With MünchenerHyp you can arrange fixed-interest terms for up to thirty years – depending on your personal wishes and needs.

In addition, you can arrange a fixed-interest term for the entire lifetime of your loan – even up to 37 years.

Arrange a fixed-interest rate for the entire term of your loan today and avoid the risk of higher interest rates for your follow-up financing.

Repayment and Advance Repayments of Loans

With MünchenerHyp you can set the annual rate of repayment – and thus the term of the loan – as you wish. The initial minimum repayment rate is 1% of the principle per year.

Examples of Loan Lifetimes Based on Rate of Repayment

Rate of Repayment Lifetime of Loan
1,0 % p.a. approx. 37 years
2,0 % p.a. approx. 26 years
3,0 % p.a. approx. 20 years
4,5 % p.a. approx. 15 years

 

In addition to standard loan repayments, you may also – if agreed – make advance repayments. We offer options of repaying 5 %, 10 % or even up to 100 % of the total loan per year. This means that if you have extra funds available you can lower your outstanding loan balance and thus the interest burden, and therefore shorten the time left until your loan is repaid in full.

Loan-to-value Ratio

The loan to value ratio reflects the relationship of the loan amount to the value of the property. The more of your own capital you use when you buy a property, or the more you have repaid the loan, the lower the loan-to-value ratio will be.

MünchenerHyp will allow you to finance up to 110 % of the property’s loan value, which is equal to approximately 100 % of the purchase price. The lower the loan-to-value ratio the more favourable will be the lending conditions.

Your Loan will not be Sold

MünchenerHyp provides all customers who are servicing their residential property loans as agreed in the original loan agreement with a guarantee – without charge and as a standard service – that their loans will not be sold and that claims will not be conveyed to third parties. This gives you security over the entire lifetime of your loan.