Finding the right financing is one of the biggest hurdles in realising the dream of owning your own home. As experienced estate agents, we know that the sooner you address this issue, the better! However, we don’t just leave it at good advice; as part of our financing brokerage services, we also provide you with concrete support in finding a financing model that is optimally tailored to you and your life.

When it comes to equity, prospective buyers are often uncertain. As a general rule, a high equity ratio reduces the amount of credit required and also gives you better credit terms in the form of lower interest rates. The general recommendation is that 20 to 30 per cent of the purchase price should be covered by your own funds – but it should be at least 10 per cent. If your equity share is lower, you will often have to accept a higher interest rate. The same applies if you have no equity at all. In this case, banks will demand higher collateral – for example, in the form of a very high and stable income. Many banks only grant loans if equity is available. If you already own property or are an investor, the calculation often looks different and financing of up to 100 per cent of the total amount is possible. You can find out whether and how a property is profitable for you with our profitability calculation.

When searching for property, buyers often focus solely on the purchase price and forget that there are also significant additional costs involved. These additional costs comprise:

• the land transfer tax
• the Notary fee
• the land registry fee
• the estate agent’s fees

In North Rhine-Westphalia, the land transfer tax alone amounts to 6.5 per cent of the purchase price – together with the other items, this means that costs of around 10 per cent are incurred in addition to the purchase price. You should be able to pay these additional purchase costs from your own funds, especially as very few banks offer full financing that also covers the additional costs. For our Mallorca properties, please visit our FAQs, where we have summarised the most important points for you.

When you purchase a property with the support of home4you, you benefit from our extensive partner network, which includes a large number of financial service providers from the region. We will be happy to take a close look at your financial situation and refer you to a suitable credit institution or bank. We are often able to offer our customers special terms and conditions. First, ask your bank for a quote and compare it with others. This home4you service is free of charge for you.

Would you like more information about financing brokerage? The team of experts at home4you will be happy to assist you. Call us at our Cologne real estate office, send us an email or use the contact form provided!