Building savings contract – the classic route to equity

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For many Germans, the building savings contract is a popular instrument for saving up equity for the purchase of real estate. But does building savings make sense ? Here you can find out more about how building savings contracts work, their advantages and their risks.

Functioning and advantages of building savings contracts
A building society contract consists of two phases: the bolivia mobile database savings phase and the loan phase. During the savings phase, you regularly pay a fixed amount and receive a comparatively low interest rate. As soon as you have saved a certain amount, you can switch to the loan phase and receive the building society loan at a favorable interest rate.

One advantage of building savings is the planning security. The interest rate for the subsequent loan is already fixed when the contract is signed. You can also take advantage of government subsidies such as the housing subsidy or the employee savings allowance.