The annuity loans are also called redemption or repayment loans
Annual loans are the most commonly agreed form of loan today. An annuity loan is a classic form of real estate financing with regular and constant payment amounts. The annuity loan is the classic form of real estate financing.
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Annuity Loan: French “English” German
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Annual fees loan
The annuity loan is the standard solution among real estate financing products. This is how an annuity loan works: A constant monthly or quarterly installment payment (the annuity) is paid, which results from the target interest portion and the repayment portion.
In the case of annuity loans, the target interest rate is set for a certain target fixed interest period. As the repayment proceeds, the target interest portion contained in the annuity decreases, while the repayment portion increases accordingly.
The repayment period can be set to a maximum of 15 years. Only then will you start repaying your loan. When financing your property, you should ensure constant interest rates with regular repayments for over 30 years.