What new regulations borrowers must observe
The financing conditions for real estate are regularly adjusted to offer both buyers and banks more security. In 2025, new regulations will come into force that will affect lending and capital requirements. Anyone looking to buy a property should familiarize themselves with the changes at an early stage.
Stricter capital requirements
One of the most important changes concerns the amount of equity that buyers must have for real estate financing. While financing was previously possible with 10 to 20 percent equity, banks are increasingly setting stricter requirements. For some credit models, at least 30 percent is now recommended in order to obtain a better financing offer.
This change is intended to prevent buyers from overburdening themselves financially and minimize credit risks for banks. Those who deal with the equity requirements at an early stage can secure better conditions.
Extension of the fixed interest period as standard
In view of the fluctuating interest rate policy, more and more banks are opting for long-term fixed interest rates. While a ten-year fixed interest rate used to be the norm, 15 or 20-year models are now increasingly being offered. This offers buyers planning security and protects against rising interest rates.
However, borrowers should check carefully whether they want to commit to a long-term loan. Anyone who expects to be able to make larger repayments in the coming years should look out for flexible contractual clauses.
Conclusion
The new financing rules make good preparation more important than ever. Higher equity and a long-term financial strategy are crucial in order to obtain favorable conditions. Buyers should familiarize themselves with the new requirements at an early stage in order to plan their financing optimally.
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