4. The financing plan & loan request

Your Raiffeisen advisor will draw up a customised financing plan with you, based on the duration of the loan (generally 20 or 25 years, but can be extended up to 30 years) and interest rates. Your advisor will also guide you when it comes to the integration of any state housing subsidies that you could benefit from, as well as tax benefits and insurance to protect your assets.

When submitting your home loan request, you will have the choice between a fixed and/or variable rate. Each option involves advantages and disadvantages.
With the variable rate is not having to pay any fee in the event of early repayment of part of the loan. The fixed rate on the other hand is usually slightly higher than the variable rate, but it protects you from rising rates. Solutions combining fixed and variable rates may also be considered.

The granting of the loan depends on several factors:

your monthly repayment capacity, which mainly depends on your income;
your expenses;
your debt ratio;
your savings. They can be used as your personal financial contribution;
the actual value of the property, which serves as a mortgage collateral throughout the loan period. An expert assessment of the property value may be requested;
possible further guarantees, such as other real estate properties in your possession or the possibility of obtaining a State guarantee;

The various stages involved in financing your home

First real estate purchase or investment?