Use our Glossary to understand the different German mortgage terms and definitions


Annuity Loan

An annuity-based financing is a financing system based on regular monthly installments. The installments consist of 2 elements, the interest and the capital repayment. With each installment, the debt is reduced. As the overall debt reduces, the interest element reduces and the capital repayment element increases.This continues until you have paid off 100% of the loan. The higher the capital repayment, the faster the loan will be paid off and the less interest you will pay.