What security can I lodge with the bank?

We answer these and many other questions in our video blog episodes.

Here is the transcript of episode 15 to read through:

As a rule, the bank usually wants the incidental acquisition costs—notary and court fees, and property transfer tax—to be covered by your own funds. Unless you already own property, in which case you can certainly finance these as well. Then, however, the question remains: how do you get particularly good bank rates? Is there anything you can bring in as additional collateral that improves your starting position? Regarding that, one can say: as a rule, that is not necessary at all.

That isn't usually done with a rented property either. But if you already own property and some of it has perhaps already been paid off, you can get money from the banks more cheaply if you also put up your wealth or one of your properties as collateral. That can make a lot of sense because you are then using the advantage of already owning property to get better terms from the bank.

There is no need to throw your money down the throat of the bank. But if you want particularly favourable interest rates and have a better starting position because you already own property, then that can certainly be taken into account and brought into play. And that will make it even easier for you to establish a strong position with the banks!

Keywords:
Bank terms, additional costs, equity, real estate, security, paid off, interest.