What interest is possible with home savings?
The low key interest rate of 0.00% has an impact on building society savings. Even with this popular form of savings, interest rates are significantly lower than ten years ago. Nevertheless, on average they are better than other forms of savings. The minimum interest rate is 0.2% this year, and a maximum of 5.2% is possible. The interest is paid out annually, which means that savers benefit from compound interest. If the home saver pays $ 800 annually, he can receive between $ 4,834 and $ 5,753 after the six-year term. This shows how important it is to get the best possible interest out with the home loan calculator. The difference is quite relevant.
What are the results of the home loan calculator?
If a home savings contract is concluded with one of these funds, the saver receives state support. This does not depend on the choice of the bank but is the same for everyone. This year it is 1.5%. For comparison: in 2005 the savers still received a lucrative 3.5%. Since 2009, a maximum of $1,200 has been funded each year. If the home savings contract is terminated early, the state premium must be repaid. Banks and credit institutions that do not receive government funding often offer savings models based on building society savers. They should also be considered as providers, provided that the bank is based in Austria. The same applies to online building society savers, which should only be concluded with renowned institutes that also have branches.
Why is building savings worthwhile?
Anyone planning a building project for the future is well advised with a building society saver. Even if the interest rates are currently only a little higher than those for other forms of savings, the prospect of a home loan with very favorable conditions attracts at least. There is also a government grant that is exempt from KESt. Since a home saver is usually only concluded for this purpose, the possible conditions for the home loan should be taken into account when choosing the provider. This somewhat more complicated calculation can be easily solved with a home loan calculator.
How much home loan is possible?
The amount of the loan depends on the saved funds. If $ 800 was paid in each year for 6 years, the average rate of interest is around $ 5,000. For a home loan of $ 100,000 with a term of 20 years, the monthly repayment rate, in this case, is approximately $ 510, with an effective interest rate of 2, Dorian Gray%. The monthly installments are often only slightly higher than the current rental prices. However, they have the advantage that the installer owns the property after a few years.
What can the home savings credit be used for?
As soon as the building society contract expires, the saver can freely dispose of the credit. Even if he does not build, he is entitled to the state premium. The situation is different from the home loan: the loan is earmarked and the money may only be used for residential investment. However, this does not mean that an entire house has to be built: the purchase of an apartment, modernizations, a land purchase, new buildings, energy-saving measures or renovations are also included.
What should you watch out for when paying interest?
A variable rate of return is recommended for building savings themselves. Interest rates have currently reached a historic low. They will not go down any further since the banks want to avoid negative interest rates. Conversely, a fixed interest rate is recommended for the loan, as long as the loan interest is lower than ever. The duration of the fixed interest rate is a matter for negotiation with the responsible building society. The current interest rate cap is 6 percent, but this can still change.
What should you watch out for with the Loan calculator online?
A home savings contract should not be concluded without first making a home savings comparison. If you already know how high the monthly installments can be, you can easily find out the best savings models online with a home savings calculator. The interest rates are very similar for all Austrian providers, but only a few percents can make an interesting difference in the home savings premium. Whoever concludes a home loan saver should have a calculation of how high the contract sum will be in the end and what the loan conditions will be. Because especially with the subsequent home loan, there can be important differences, such as the possibility of early repayment or a temporary suspension of the installments. The attractive thing about a home savings contract is not necessarily the savings, which, apart from the state housing premium, unfortunately, has hardly any effects on the assets, but rather the cheap loan afterward. The additional services, such as a one-time bonus or a non-cash bonus, a free vignette, etc. can also be an incentive for building savings.
What personal aspects have to be considered for a home loan?
Many home savers are automatically closed for their offspring by parents or grandparents if they are not yet of legal age. Anyone who buys a home saver for himself because he wants to build in the future should now consider how much the construction should cost, whether to build a house or only buy an apartment, etc. Depending on the amount of savings should be high enough to get a loan in the desired amount.
When should you be careful with a home loan?
Six years can be a long time. The saver’s future forecasts are not always correct. Even though he has always paid his installments, the credit rating can be poor due to a loan, lack of security or other debt. If there is a KSV entry, the bank cannot offer favorable terms, despite the building society savings contract and long-term loyalty of the customer, since it takes a risk when lending. Mortgage collateral is part of the home loan anyway unless the borrower can provide other collateral.