Building society contract: flexible and fast

No flat tax, low loan interest, short term and investment in your own home: the building society contract combines many advantages.

Withholding tax

What use is high credit interest if a quarter of it goes to the tax office? Your home savings credit is usually exempt from withholding tax. On top of that, you benefit from low loan interest rates. Which credit remains tax-free depends on the credit interest and the amount of the credit. A single person remains tax-free up to an investment of EUR 80, 100 if the credit interest rate is 1 percent. Married people have double the allowance. The flat-rate tax is irrelevant for most new-generation home savings contracts. Your building society advisor will be happy to calculate your tax-free credit.

Flexible & fast

The home loan loans run for just 6 to 17 years. Compare that to mortgage loans. Whether you want a longer loan term due to a lower monthly payment of only 4 euros per 1, 000 euros in savings, or a shorter term until allocation and quick loan repayment - all situations and wishes can be represented depending on the tariff.

Calculate generously

Remember that your house should not be a place to stay for the transition. They will live there for the next few years and probably also decades. You don't just want the minimum standard. If you do the calculations now and want to improve them later, but only have a small amount of home savings, you have to finance more with mortgage loans. If you buy an old building, an appraiser should clarify what the total costs will be - including renovation. So play it safe and treat yourself to a decent amount of home savings. The fact that the originally planned costs are exceeded is the rule rather than the exception.

In this post you read:

• Finance smartly
• Flexible and fast
• Survey costs
• Financial compass
• Expert advice