Stiftung Warentest – What borrowers need to pay attention to when financing their finances

Anyone wanting to buy or build a house, or modernize their property, needs financial support in the form of loans. Banks, insurance companies, and building societies offer various financing options to help prospective homeowners. Stiftung Warentest (Germany's leading consumer testing organization) has compiled information on which mortgage loans are truly worthwhile and what borrowers should consider when financing their property.

In total, Stiftung Warentest examined and tested 90 lenders and loan brokers, as well as four different financing models. The result is that the difference between an expensive and a cheap loan can be as much as €65,000. Therefore, Stiftung Warentest advises borrowers to obtain several offers. These should include proposals from regional banks, the borrower's primary bank, and at least two different loan brokers.

The foundation for choosing the right loan and securing financing is determining the correct loan amount. Stiftung Warentest provides a mortgage calculator , which calculates tailored building society savings contracts. Once the loan amount is determined, a favorable interest rate should be found and secured for as long as possible. Secondly, the repayment rate should be as high as possible. Consumers can find the test results and tips on real estate financing on the Stiftung Warentest website and in the April issue of the magazine Finanztest.
Source: Stiftung Warentest