Anyone who takes out a loan must provide the bank, as the lender, with certain collateral that the bank can use to secure its money. In the case of real loans, so-called mortgages are these securities. They are referred to as real, ie real, collateral.
In addition, a maximum loan limit of 60% of the loan value may not be exceeded, which limits the loan amount.
Borrower’s credit rating arrives.
In the case of real loans, on the other hand, which are also referred to as basic loans, real estate loans, mortgage loans or property loans, the bank requires collateral, for example in the form of:
- Security land charge
These so-called real estate liens must be entered in the land register. Another special feature of the real loan is the mortgage lending limit set out in § 14 PfandBG of a maximum of 60% of the mortgage lending value.
Further prerequisites are the independent valuation of the property by a competent appraiser and adequate insurance of the property to be lent against damage by the owner.
Building societies and mortgage banks belong. But savings banks, online banks or Volksbanks also give real loans because they are considered a very secure lending transaction.
Before issuing the loan, you do not check the borrower’s personal creditworthiness, but mainly the economic creditworthiness. The interest on a real loan is low for most providers, and if the mortgage lending value is high enough, a very high loan amount can be granted, despite the low mortgage lending limit.
Term for the loan.
In addition to these advantages, there are also disadvantages. As a rule, the applicant needs higher equity.
- In terms of equity, up to 40% is often required for a real loan, which is significantly higher than the 15 to 30% that is usual for loans.
The selection of possible lenders is also large, since almost every bank offers real loans. It makes particular sense here to compare the various offers and choose the bank as the lender whose loan terms are the cheapest.