Important mortgage clauses in Germany

Important mortgage clauses in Germany

1.1 Interest

Annually 1.500 % interest. This interest rate is until 02/28/2024 immutable.

Each party can request that the conditions for granting the loan (interest rate, discount, etc.) be renegotiated at the earliest six weeks, at the latest up to two weeks before the fixed interest period expires.

If no new loan terms are agreed by the end of the fixed interest period, the loan will run on changeable terms. The interest rate set by the Savings Bank tor a loan of this type then applies. The Savings Bank will inform the borrower in writing of the initial interest rate and the procedure to adjust the interest rate.

1.3 Other Costs
The borrower bears the cost of the collateral order. The reimbursement of expenses of theSavings Bank is based on the legal regulations.

1.5 Repayment & Payment Dates

Any amounts due will be debited according to the above debit agreement. Interest is payable for the first time on the payment date following the first payment, redemption amounts for the first time on August 30, 2020. Redemption loan: Redemption 2.50% annually of the nominal loan amount plus the amount saved by the repayment Interest.

3. Collateral

The loan can only be drawn on if all the prerequisites for this are met, that the agreed collateral is available to Sparkasse and Sparkasse has received confirmation of this, if necessary. The following guarantees have been / were assigned to Sparkasse - in separate contracts that regulate the details: Land charge in favour of the direct savings bank Over totalling EUR ….. at the property

8. Notice of termination

The possibility of termination for Sparkasse and the Borrower is based on No. 26 part. 2 of the general terms and conditions. In addition, the Borrower can take out a loan for which a fixed interest agreement according to no. 1.1 exists and which is secured by a mortgage or lien after six months from the date of receipt in full, with a notice period of three months, if this is warranted by its legitimate interests. (e.g. sale of the property, further mortgaging of the property). In this case, the borrower must compensate for any damage that Sparkasse incurs as a result of the early termination (compensation for the incident).

9. Early Termination

If the guarantor violates the special obligations imposed on him in the separate security contracts or deeds of land charge.

If the borrower violates the disclosure and information requirements imposed on him in No. 9.

If the Borrower falls behind with payments due more than 14 days and does not pay even after another grace period of 14 days.

If the foreclosure sale or administration is initiated in the encumbered property or in  parts thereof; the case of the compulsory auction for a dispute among co-owners / co- owners is excluded.

If accessories, rental or lease interest are pledged or if the same is used without the approval of Sparkasse, unless the accessories are available within the limits of a proper economy.

If the deposit object is sold in whole or in part or otherwise! it is dispensed without the consent of Sparkasse or, in the case of an inheritance right, the property owner makes use of his or her right to return home;

If the legal validity or the rank of the land charge is disputed or if the agreed rank is not obtained within two months.

Extra loan repayments in Germany