The house purchase without equity is one of the most sought-after real estate financings. The Rule "at least 20% equity" no longer counts To the absolute requirements when buying a house. immoverkauf24 informs about the house purchase without equity and clarifies the most important questions.
Content of this page:
1. What does the purchase of a house without equity mean?
Übusually the buyer brings with a real estate financing own savings, the so-called equity capital. Until now, the golden rule applied: "At least 20% equity must be brought in to get a good interest rate". Nowadays many credit institutes expect that at least the purchase additional expenses, i.e. real estate transfer tax, notary costs and broker’s fee are financed by the buyer himself, but also a real estate purchase at the all costs financed through a loan is possible.
If the buyer finances only the purchase price and pays the additional costs himself, he can expect the usual interest rates for house purchases. The more own capital funds the customers bring up, the more favorable usually the building interest becomes. In the case of a house purchase without equity capital interest rates and thus the total costs will be higher than for a real estate purchase with equity capital. Nevertheless, this form of financing is often more advisable than renting.
Use our interest and repayment calculator here to determine online what monthly loan payment you would have with what loan amount. The calculator also calculates how the remaining debt would develop over the term until the loan is repaid.
When entering the loan amount, also consider the ancillary purchase costs, if you want to finance them as well.
2. Who can buy a house without equity, i.e. fully financed?
In order to fully finance a house including ancillary purchase costs, the borrower must have a fixed and high income and have a secure job have. Employees in the public sector or civil servants have good chances of full financing. Self-employed persons or buyers with a low income must usually be able to pay at least the ancillary purchase costs themselves. In the end, the bank checks how much money the customer has available each month and whether he can afford a loan in the desired amount.
Due to the residential real estate credit directive (since 21. March 2016), the maximum terms of loan agreements are limited. If one could finance so far still problem-free up to the pension age, then with new financings the loans must be paid off with pension entrance or an accordingly high pension income be proven. For this purpose, the banks and credit brokers check the relevant documents. Consequently, it is worthwhile to start early with the acquisition of residential property.
3. Is there a calculator for buying a house without equity??
Since the chance of buying a house without equity strongly depends on the Bank internal guidelines depends, should be researched by comparing many banks, which offers the best loan offer.
With immoverkauf24 Financing calculator the house purchase can be calculated without equity capital. Determine the possible monthly rate, when the loan is paid off and how much interest costs would accrue. Afterwards you have the possibility over our independent financing advisors the Conditions of ca. Compare 300 banks without obligation to let.
4. Buy a house without equity – which bank finances?
Which bank finances a house purchase without equity depends on the various factors of a real estate financing:
- Who would like to take the real estate loan (occupation, family situation, income. )?
- How high is the loan amount to be financed??
- How high is the amount to be financed compared to the value of the property??
- Are there guarantors?
- Is the property owner-occupied or an investment??
- Which securities are present (other real estate, funds etc.)??
Since each bank has its own regulations can set up, it is not to be said sweepingly, which credit institution makes the house purchase without equity possible. Gladly we compare without obligation and free of charge the conditions of ca. 300 banks for your home purchase without equity.
5. Raise equity for home purchase – here’s how it works
The equity for the house purchase does not have to be in a savings account. There are other ways to provide equity:
- Taking out a loan that is not secured by the property
- Private loan from the family, which is recognized as equity capital
- An existing fund savings plan
Which possibilities you have to form own capital funds also at short notice, you experience in a noncommittal Talk with our independent financial advisors.
Craftsmen who buy a house in need of renovation can have their own contribution to the renovation credited to the equity at the bank in the form of a muscle mortgage.
6. What are the risks of financing a house without equity??
In the case of home financing without equity, banks are already assessing any risks. For example, a property valuation is first carried out by the bank, in the context of which it is determined whether the purchase price is appropriate.
If, in the worst case, the loan can no longer be serviced, the borrower or the bank must sell the house. So that the bank does not make a loss, before the loan is granted, it is determined what actual sale price the property will bring in case of emergency. The sales price calculated by the bank is lower than the market value due to risk discounts and is referred to as the mortgage lending value.
With a house financing without own capital funds the bank will require a high repayment, in order to come as fast as possible from the risky situation of a real estate sale with losses. The faster the loan is repaid, the faster the risk is reduced. As a result, financing without equity usually requires high monthly payments. Also the interest rates will be comparatively high, due to the high risk for the bank. Since the interest rate level is currently very low anyway, the previously mentioned factors do not have a particularly strong impact. That the House purchase without equity nevertheless worthwhile, you will learn in the next point.
7. What are the advantages of buying a house without equity compared to renting??
Despite the risks of home financing without equity mentioned in answer 4, in most cases it represents a profitable alternative for rent. Even if Repayment and interest if necessary. are somewhat higher, than in the case of financing with the use of own funds, the purchase of real estate has an effect in the long run as a rule positively from.
With the real estate purchase sinks by the service of the credit amounts the total load by the factor housing costs. Simplified explained is a 100.000 € high loan, which is fully repaid over 40 years, after 10 years term only 75.000 € high, the buyer has 25.000 € minus. of the interest in the own pocket gewirtschaftet. A tenant may pay a little less rent in these 10 years, but has not invested a cent of the money he spends on housing for himself.
In most cases the real estate purchase is worthwhile also without own capital funds. Even the higher interest rates do not have a negative impact in the long run. If prospective buyers save first money, in order to acquire a real estate, then they cannot save renting costs in this period. Who for example 20.000 € is saved for the equity capital, a loan of approx. 40 months. In 40 months, however, so much rent is paid that even the higher interest rate and the slightly higher amortization are not a negative point in the comparison purchase against rent.
Whether you better continue to rent or buy should, you can calculate via the immoverkauf24 rent calculator. The calculator measures your current rent, you can indicate what rent increase you expect in the future, what the value of your property will be in the future and what financial advantage or disadvantage you will have if you buy it.