Home loan and savings contract

The home loan and savings contract is one of the classics among construction financing options. Unfortunately, it is somewhat outdated and, given the current market conditions, is more suitable for saving than for drawing down and investing. 

This is how it works: There is a savings phase in which you can decide how much money you want to deposit. Once you have saved up the minimum balance and have an appropriate rating and credit rating, the loan phase continues.  

In the end, it is a classic annuity loan – except that your credit balance is offset against the amount of the loan. 

By the way, you can only use the loan from the building savings contract for investments for residential purposes. 

If you would like to know more about the different types of loans, listen to our podcast episode "Alles Annuitätendarlehen, oder was?".

Note: German audio only