A forward loan is nothing more than a (usually) annuity loan, which is not paid out immediately now, but only in up to 60 months. The special feature: no (commitment) interest or fees are payable on the forward loan until the disbursement date. So you can secure the current interest rates for your follow-up financing in the future without additional costs.
If the fixed interest rate of your current financing expires in 60 months (5 years) at the latest, you can secure the favorable interest rates of today for the follow-up financing with a forward loan. This is a bet: if the interest rate at the end of the fixed interest period is higher than today, you have won. If the interest rates fall – instead of rising – the forward loan has not paid off.
How a forward loan works!
You already conclude a loan agreement with one of our bank partners with a fixed interest rate. The loan amount is equal to the remaining debt of the current loan at the expiration date. The exact remaining debt should be confirmed by the current lender.
The new loan will not be disbursed immediately, but only when the fixed interest rate on your old loan expires. The new loan replaces the old one. This process is done – without your special participation by means of a sog. Redemption power of attorney – directly between old and new bank.
During the forward period (the time from today until the debt rescheduling date), you will not incur any charges (such as z.B. Commitment interest). Instead of charging commitment interest after, for example, 6 months, the calculated commitment interest is added to the interest rate. The interest rate is fixed by the so-called. Forward surcharge therefore slightly higher than if the loan is paid out immediately. Depending on the bank and the prime rate, the interest surcharge is between 0.01% and 0.025% per month lead time.
What are the advantages of forward loans?
With the forwarddarlehen you secure yourselves the current low interest level for your follow-up financing. If the general level of interest rates rises until the rescheduling date, you have made a real deal: without forward loans, you would then have to pay higher interest rates.
In contrast to a building savings contract, with which you can also secure interest for the future, you do not have to pay any closing fees or savings installments.
What are the disadvantages of forward loans?
If the interest rate level at the time of rescheduling is lower than today's interest rate conditions, you have – in retrospect – made a bad deal, because you will still have to accept the forward loan. If this is not desired on your part, you must send to the bank a sog. Pay non-acceptance compensation.
What are the costs or fees for a forward loan?
If your old loan is paid off, there are notary and court fees for the "transcription" of the land charges in the land register. The amount of these costs depends mainly on whether your old bank agrees to an assignment of the land charges to the new bank. If that is (as mostly) the case the notary must certify only the signature under the assignment of the basic debt (costs approx. 300 euro). Only if the land charge assignment is not possible, old land charges must be deleted and new ones registered. The cost of this is around 0.5% of the new loan amount.
For whom is a forward loan suitable?
A forward loan is optimal if you assume that the interest rate level at the time of debt restructuring is higher than today and you want to secure today's interest rates for the long term. In addition, a forward loan makes sense if your personal situation changes significantly in the time until the follow-up financing and there could be problems with the follow-up loan (z.B. Because of starting a self-employed activity).
Can you also take out a forward loan if you are looking for a suitable property to be financed later??
No, forward loans are used exclusively to reschedule already existing real estate financing. It is not possible to take out a forward loan in order to reserve the current conditions for a later financing (new construction/purchase). A few years ago there was such a possibility via the DKB bank, but this loan variant has not been offered for a long time.
If you want to secure the current interest rates for a later real estate purchase, new construction or modernization, we recommend our so-called. Forward plus concept!