Mortgage loan as a means of buying or building real estate

A mortgage loan is different from a home loan. This form of loan is secured by the mortgage lien. The money from this loan can be used for various purposes, which means that the borrower can freely dispose of the money. Mortgage loans are one of the most common forms of bank loan.

  • Mortgage loan for the dream of owning a home
  • Also note interest rate developments for mortgage loans
  • Mortgage loan comparison with the best deals

Loan amount, unlike a home loan, not just to buy or build a property. The borrower receives the money at his free disposal and provides his own property as security.

In Germany, a mortgage loan can only be taken out on a piece of land or rights equivalent to real estate. The mortgage gives the borrower better conditions for the mortgage loan.

  • The mortgage associated with the loan is tied to certain conditions and imposes various conditions on the property through which the loan is to be secured.

Fixed interest rates and an initial repayment of 2-3% are due on the mortgage loan.

A mortgage loan comparison clearly shows the best mortgage loan offers

A mortgage loan comparison clearly shows the best mortgage loan offers

Calculator provides an overview of the costs associated with a mortgage loan. It is a listing of the

  • monthly installment to the bank
  • Term for the mortgage loan
  • Residual debt at the end

shown. With the mortgage loan calculator, the borrower can see exactly what the cost of a mortgage loan would be. For the mortgage calculator, only a few details need to be given:

  • Amount of the loan
  • What the interest rate on the loan is expected to be
  • How much repayment is made (in percent)
  • Term: How long the loan should run

Mortgage calculator

Mortgage calculator

Loan amount $ Annual interest rate % Redemption % running time Years Monthly Rate $ Term until full repayment Years Remaining debt $

Financing plan, extract from land register, land map, extract from property book, certified purchase contract)

  • Entry of the mortgage in the land register
  • Rank certificate (with early payment of the loan amount)


Before concluding the loan agreement, the bank will also check various things to ensure that the ownership structure is correct and the sum is secured by the property. It will therefore collect the following information:

  • Inspection of the loan documents
  • Carrying out a security assessment (mortgage lending value is estimated)
  • Determination of the lending limit
  • Information on the borrower’s credit rating

Advantages and disadvantages of mortgage loans

Advantages and disadvantages of mortgage loans

If you want to take out a mortgage loan, you should weigh up the advantages and disadvantages. The great advantage of a mortgage loan is that the borrower can negotiate much better loan terms through the mortgage than a borrower who cannot offer such security. In addition, a property owner has good protection if he defaults on payment.

  • In the event of a delay in payment, the bank will first attempt to sell the property in order to secure its money. You can achieve this by legally enforced administration of the property or in the form of a forced auction.

First of all, such a loan is a relatively large burden because you often owe the bank a very large amount. It is not easy for every borrower to cope with the account statement. Another disadvantage is that a property with a mortgage is more difficult to sell than an unencumbered one.

The registration of a mortgage in the land register is associated with costs (land registry, notary), which of course the property owner has to bear.