Mortgage Lending Experience – Terms & Loan Test

We are the one of the largest and most well-known German insurers and few will probably remember that insurance can also offer real estate financing. In fact, that’s exactly what we has to offer. Several options are available to the customer. In addition, we offers mortgage lending the opportunity to also make use of promotional loans. The financing is provided directly through the alliance, this is not a mediation offer.

We wanted to know what the benefits of our mortgage lending really are and have looked closely at the achievements in the big mortgage lending test.

Our company test in the overview

Advantages:

  • Fixed rate of interest of up to 40 years possible
  • Offer of a family bonus
  • Early repayment right may be contractually agreed
  • Choice of several financing options
  • Promotional loans are available
  • Different loans possible

Disadvantage:

  • No overview of interest rates

We are a global company that operates as a Group. More than 80 million customers are served worldwide. It is the leading insurance company in the country. The focus is on insurance. Both life insurance and private health insurance and property insurance are offered. In addition, we are also increasingly active in the financial sector. So there is a broad field in terms of wealth. We has also achieved a high profile. The insurer is considered to be very liquid and with this option offers its customers the option to make their dream come true. Of course, the question is also exciting, how the conditions look like here and to what extent the offer of the alliance is really interesting for potential customers.

Allianz mortgage lending experiences

The website of the Alliance

In our test for mortgage lending, we noticed first that the website for this offer is kept very clear. All the relevant information can be found at a glance. If you are looking for a way to find out more about real estate financing, you will quickly find it. Only in search of the interest we had to take a little time. Nevertheless, we have carefully reviewed all terms and services of our company.

Mortgage lending is a big step in life and nobody wants to take that step without thinking. That’s why in our test we looked closely at how the financing is composed and how much room there is for the client. At this point, it is always helpful to have an example of financing that makes it clear what the interest rates and conditions are in general. The alliance does not quote a general interest rate. This depends on several factors. Here is an interest calculator on the website, which can be used. Interested parties simply enter the required data in the interest calculator. These data are:

  • What should be funded?
  • What kind of object is it?
  • What is the usage?
  • Employment relationship of the customer
  • License plate number of the future place of residence
  • loan amount
  • purchase price
  • target rate fixation
  • financing
  • unscheduled
  • Ongoing eradication
  • Early repayment right

We ran an example about the interest calculator. In our example, we buy an existing property as a single-family home for own use in Berlin with a purchase price of 250,000 euros and a loan amount of 200,000 euros. The debit interest is 15 years and we choose an annuity loan with a repayment of 2%. We would like to claim special repayment, we waive an early repayment right. The annual special repayment is 2%. Now you can calculate the interest. In our example, it is 1.59% APR for basic mortgage lending and 1.74% APR for classic mortgage lending.

In order to understand why interest rates are so different, we have taken a close look at the mortgage lending offer and looked at what types of mortgage lending are even offered.

real estate loans:

real estate loans:

  1. The Volltilger loan
    Here is worked with interest deduction. The customer pays his property within a total financing. This means that only a financing contract is concluded that runs until the property is owned by the customer. A follow-up financing is not necessary. The interest rate on this loan is discounted.
  2. The annuity loan
    This is the classic that will be provided. The loan will be repaid in installments until the end of the fixed interest period, after which the customer has to take care of follow-up financing.
  3. The term loan
    Then there is the bullet loan. Here, only the interest will be paid and the repayment will be built on a pension or life insurance. At the end of the term, the loan is then repaid. It is possible to benefit from tax advantages in this variant.

All loans can also be combined with subsidies, such as those offered by Zaloan.

We also offers follow-up financing. Here, customers have the option of using a forward loan and securing interest up to 3 years before the current insurance expires. The fixed interest rate for follow-up financing can be up to 40 years.

When it comes to building financing itself, the alliance differentiates between two variants. Customers can choose from the model base or the model classic.

  1. The construction financing basis of the alliance
    The borrowing rate for this financing is discounted, the possible loan amounts start at 25,000 euros and reach up to 400,000 euros. The funding phase is up to 80% of the market value. The type of use is set for use for residential purposes. The professional group is also limited here. For the object type, interested parties can choose between a one- to three-family house or a condominium. It is an annuity loan with a fixed interest rate of up to 40 years and an initial repayment of up to 10%. The combination with state funding is not provided here.
  2. The construction financing classic of the alliance
    In this variant, the debit interest is regular and it can even be used amounts of up to 1 million euros. The financing phase can be up to 100% of the market value, all types of use are possible, all types of objects and financing can be assigned to all professional groups. Again, this is an annuity loan with a fixed interest rate of up to 40 years and an initial repayment of up to 10%. Also the combination with a state promotion is possible.

For both options, early repayment rights, a financial hedge and a special repayment of up to 5% can be agreed. It is interesting to know that the basic version is not offered by all our agencies.