In the past few days, the topic of mortgage lending has been reported more frequently in online topics. Frequently, terms such as combi-loans and combi-credit were used. Unfortunately, this has not always been done in detail on the various forms of financing, which can lead to great confusion. The terms can have different meanings depending on the provider.
Generally speaking, there is no difference between a combined loan and a combined loan. Both terms can have the same meaning. In the end, some banks prefer to use the term loan, while other banks or building societies use the term credit.
However, the actual meaning can be very different. Accordingly, there is the risk that financing options will be misunderstood and that one or the other builder may make the wrong choice. To avoid confusion, the different meanings are briefly explained.
Flexible financing with the variable loan
On the one hand, a combination loan or a combination loan can be a financing option based on a variable real estate loan. The borrower remains flexible because he can repay the loan at any time and also benefit from changes in market interest rates. If it is possible to convert the variable loan into a fixed-rate loan, one often speaks of the combined loan.
Favorable building money from the building society
In the world of building societies, combined loans and credit lines have a completely different meaning. These are real estate loans that are available immediately – saving a home savings contract is not required. Nevertheless, a home savings contract is integrated into the financing, thereby ensuring the lowest possible interest rate and a high interest rate.