Whether client, homebuyer or follow-up financier: Nobody should sign a loan agreement with the house bank. It is better to first look around the market and compare conditions of different lenders. Finally, the financing offers of individual banks can show considerable interest rate differentials. If you do not take this opportunity, you may be giving away a lot of money.
When comparing current loan conditions is currently striking that surprisingly many insurers perform well. Many potential borrowers are surprised by the fact that they primarily counted on financing offers from banks and building societies.
There is a reason why so many insurers are currently involved in mortgage lending and offer attractive interest rates. This is the ongoing period of low interest rates. The RTE Bank (RTE) has lowered its key interest rates so much that it is no longer possible for insurers to generate reasonable returns by conventional means. You must start looking for alternatives to invest your capital profitably. For this reason, they give out real estate loans.
Some interested parties are unsure. You are wondering whether it makes sense to rely on an insurer in mortgage lending. Below we have collected the most frequently asked questions on this topic and answered.
Are financing arrangements with insurers recommended?
Many a prospective borrower has wondered whether it is really reasonable to finance through an insurer or rather opt for a bank and in doubt even accept a higher interest rate.
But do not worry, nothing can happen to mortgage lending through an insurance company. Ultimately the procedure is identical and a loan agreement is also concluded, which regulates all details of the financing. The insurer guarantees the payment of the loan after the borrower has fulfilled all the payment conditions. The borrower undertakes to repay the loan amount.
Which interest rates are possible?
In general, insurers attract very attractive interest rates. Many insurers give customers lower mortgage rates than banks. One of the reasons for this is that they do not require refinancing. They work with capital that they ultimately want to invest for their clients.
However, real estate loans are not quite as easily accessible to insurers. In other words, the insurance companies are considered relatively strict. They think carefully about who they pay their money to. No wonder, after all, it’s about the capital of their customers. Full financing or even mortgage lending without equity capital is not possible for insurers. Instead, they assist builders and buyers who use a relatively large amount of equity and thus achieve low mortgages.
Who gives me a financing offer?
There are countless providers operating in the market. Getting an overview is almost impossible. But we promise to remedy the situation: Our finance specialists determine the current financing conditions of several hundred banks, building societies and insurers at the touch of a button. This shows where low mortgage rates are luring.
The process is simple and safe. Interested parties make a request through our website. Then one of our financing specialists will contact you to discuss the project. He wants to get a first impression and is also looking for ways to optimize funding. He then examines the market and recommends suitable providers with best conditions. The entire service is of course free of charge and completely non-binding. We look forward to your inquiry.