Mortgage lending: The real estate loans of Commerce bank
The Commerce bank test report has revealed some surprises for the real estate financing segment. This includes recognizing that the bank is also concentrating on the role of a credit intermediary. The advantage: thanks to the dense network of branches, any interested party can seek advice from Commerce bank on its Commerce bank real estate loan. Which financing options are available in principle?
The Commerce bank Construction Financing Test has identified three key aspects:
- the refinancing
- the follow-up financing
- the residential / modernization loans.
In all three areas, potential borrowers can opt for different loan options. These include, among others, annuity or principal and forward financing. But: Unfortunately, only annuity loans are shown online. Anyone who wants to take advantage of other forms of credit – such as a bullet loan – can hardly ignore advice given at the next branch.
Compared to other banks that only have their own building loans , the bank can score points at Commerce bank Mortgage Lending at this point. The bank not only offers its own financing, Commerce bank also compares the terms and conditions of 250 banks. The downside: From the point of view of potential borrowers, Commerce bank’s internet presence offers only a few details regarding the construction loans.
Significantly more meaningful is the condition tableau of the Commerce bank with regard to the modernization credits. Here the interested party receives a relatively comprehensive insight into the called up loan conditions of the bank, which finances corresponding projects over up to 120 months.
Commerce bank – Clear entry into mortgage lending
The Commerce bank mortgage lending experiences provide for one or the other surprise. On the one hand, this is true of the fact that the bank has also discovered the role of a credit intermediary. On the other hand, the Commerce bank surprised by the relatively sparse information on their own financing solutions. A concrete picture only becomes apparent after a contact request for support. From the point of view of an interested party, a little more transparency would be advantageous.
Loan limits: Commerce bank test – construction money to 50,000 euros
In the context of real estate financing often high loan amounts are involved. Borrowers, for example, quickly reach a capital requirement of € 100,000 (or more) for new construction, despite having equity in the five-digit range. Where less building money is required from the bank, the air can sometimes get thin. Banks often give 50,000 euros as the minimum loan amount for mortgage lending.
The Commerce bank fits into this picture at first glance. Online only building loans are offered from 50,000 euros. But: In the course of the test report, the experience with the Commerce bank customer service has shown that financing on request is also possible with lower capital requirements. According to phone support loans can be shown up to sums of 25,000 euros – but only on the basis of the individual case.
Incidentally, Compared to other mortgage lenders, which have also included modernization loans in the portfolio, the Commerce bank goes on part of the loan limits significantly. This is especially true for the loan ceiling. Here is not – as in the case of some competitors – at 50,000 euros conclusion. Financing between € 5,000 and € 80,000 is being extended to property owners by Commerce bank.
At Commerce bank, there is construction money for the construction or purchase of a property and its modernization. Like many other banks, there is a minimum limit on construction money of 50,000 euros. But: according to the individual conditions of the financing project, there can be a loan even with a lower capital requirement. In any case, there are pluses for the generous loan limits for modernization loans.
Term & Interest: Our Commerce bank mortgage lending experience
Every client – whether it’s his or her own home or the commercial property – has to deal with questions regarding the duration of his financing and the interest rate. Both computational variables are closely linked. Background: The interest rate commitment (the period over which Commerce bank sets the borrowing rate) influences the interest rate. A long-term interest rate commitment almost always leads to higher interest rates.
This fact is also reflected in the Commerce bank – in the form of mortgage lending online application. Through the loan calculator, interested parties have the opportunity to play through various financing scenarios. The result: In addition to the debit interest period, the interest rates change depending on, among other things, the repayment amount and the loan amount (in relation to the acquisition cost).
With regard to the debit interest period, the information provided by Commerce bank is partly contradictory. On the one hand, the term “performance specification” refers to interest rate security for up to 40 years. On the other hand, the Commerce bank Kreditrechner, for example, only offers a fixed interest rate limit of 30 years maximum – which, moreover, can only be presented in exceptional cases. In terms of maturity, Commerce bank is between five and 20 years old.
For modernization loans, Commerce bank extends its financing to fixed-term borrowers – from 24 months to 120 months – to borrowers.
In the test report, light and shadow are close together. Unfortunately, the bank does not reach the full number of points in terms of maturity and interest rate. The fact that conditions such as the borrowing rate are influenced by the individual conditions of the financing project is not uncommon in the industry. The point deduction ultimately leads to confusion regarding the debit interest commitment periods.
Additional costs & fees: Commerce bank mortgage lending without administration fee
How expensive is the construction loan? Every finance customer has answered this question with certainty. Ultimately, there are several aspects that affect the total cost of the construction loan. The interest rate is just an effect at this point. Mortgage lenders can charge various fees that do not have to be included in the interest rate. These include, among other things, account management fees.
Commerce bank waives corresponding costs – such as processing or account maintenance fees. However, borrowers still have to expect charges that can increase capital requirements. These include:
- notary fees
- Fees for the land register entry
- the land charge order, etc.
These expenses usually accrue in connection with real estate acquisition. In addition, of course, also cause architect or appraiser charges. But: Also at Commerce bank is to be reckoned with at various points – for example, in the context of the deployment interest, which are due from the 3rd Month. Also, a forward financing is more expensive, since interest is charged for the previous period.
No borrower likes to shoulder additional costs. At first glance, Commerce bank Baufinanzierung manages a placement directly in the leading group. There are no processing or account maintenance fees. Especially when looking at details, however, the bank has to let competitors pull – for example, in the provisioning interest. The latter fall already after 61 days, other mortgage lenders are much more accommodating at this point.
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Requirements for mortgage lending: Commerce bank also finances self-employed persons
Mortgage lending has long been part of everyday business operations for banks. Nevertheless, the loan is often limited. Especially self-employed and business people are facing hurdles here. Banks often limit real estate loans to persons with employment. This requirement does not apply to Commerce bank, where self-employed real estate can also be financed – provided personal conditions are right.
The lending institution also goes relatively far with regard to the financed properties, since loans can be used not only for one- or two-family houses and condominiums, but also for commercial real estate. But: The property must be located inland. Ultimately, however, the fact that concrete and binding statements only apply to individual cases also applies in this context.
Important: The bank’s modernization loans will only be extended to real estate owners, provided the capital is used for projects on the building fabric or fixed components. So-called movable institutions can not be financed with the loans.
Mortgage lenders raise the bar in terms of financing requirements, sometimes quite high. In the test, the request from the Commerce bank support has revealed that even self-employed and commercial real estate in the lending process be considered. Whether the financing really comes about at the end, however, decides on the framework conditions. Compared to other banks, however, the bank seems to be very accommodating to potential borrowers.
Collateral and regulation: full financing at Commerce bank
Building loans are generally only available today if the borrower agrees to a loan of the financing object. The collateralization of the loan is standard, but conditions can vary considerably from bank to bank. For example, some mortgage lenders pull the ripcord at 80 percent mortgage lending .
What is the Commerce bank mortgage lending experience at this point? As a borrower, you will not find any information about the mortgage lending levels on the bank’s website. A little light in the dark brings the request to the telephone customer service. As a result, real estate loans are possible at Commerce bank in the context of full financing. Incidentally, the fact that Commerce bank has higher mortgage lending outlets can also be seen from the condition calculator, which can depict the corresponding loan scenarios. However, the framework conditions ultimately depend on individual factors. In any case, significantly higher borrowing rates can be expected in this context.
Customer Support – Commerce bank can be reached here
In order to optimally tailor financing to personal circumstances and to achieve a higher capital ratio through own contributions or similar – which promises a lower interest rate – it is advisable to use Commerce bank’s advisory services.
As a universal bank, Commerce bank is subject to the regulations and supervision of the European Central Bank and the Federal Financial Supervisory Authority. Both ensure that the business activities of the bank are based on the legal framework.
In terms of supervision and regulation, Commerce bank is responsible. Thus, the interested borrower can sit back relatively relaxed at this point. But also with regard to the collateralization of the loan, the bank provides a solid picture in the Commerce bank test report. Although only a support request was necessary in order to bring appropriate information in experience. Due to the fact that mortgage lending of more than 100 percent is possible, the bank is gaining points at this point.
Customer service: Commerce bank advises on Baugeld
Commerce bank is not just one of the heavyweights in banking in Germany. The bank can score with a big advantage – the nationwide branch network. A fact that is also felt in terms of real estate financing. Unlike direct banks or intermediaries, which work exclusively in direct sales, Commerce bank focuses on local consulting.
Among other things, potential borrowers feel that the telephone hotline for mortgage lending or online sales is essentially focused on annuity loans. In the branch consulting on the other hand – according to the hotline – other loan options can be used.
Especially the branch consulting is a strength in the service program of the Commerce bank mortgage lending – and leads also with regard to the Commerce bank experience report to a positive valuation. Especially since the company works at this point not only with a branch finder, but also allows the electronic appointment. The reason: real estate loans are among the consulting-intensive services of banks and insurers. Nevertheless, a bank like the Commerce bank should be reachable in still other ways.
In terms of service, our Commerce bank mortgage lending experience also looks broadly positive for the other service options. Interested borrowers can make use of a callback service or contact their customer support (069 – 98 66 09 00) with their request – such as questions about the building loan offer. The latter has answered the questions quickly in the test. If you prefer to communicate in writing with Commerce bank, you can use a special e-mail request form.
Commerce bank offers its customers a thoroughly appealing service and service portfolio. In addition to the option of contacting a banking and technical support over the phone, the branch advisory option stands out. For prospective borrowers, who do not yet have a clear idea of their mortgage lending, certainly a welcome service option. Compared to other mortgage lenders, Commerce bank is certainly far ahead. For the full score, we would have liked a live chat feature.
Commerce bank – A credit institution with many products
Special offers: Unfortunately, no information on special conditions
Every mortgage lending customer is happy about special conditions such as interest discounts. Unfortunately, our Commerce bank mortgage lending experience at this point is rather unsatisfactory. At this point, the test did not provide any information about special offers made by the bank. Ultimately, the basic conditions of the financing project are decisive. Who is not satisfied with his Commerce bank offer, but still has a trump card up his sleeve. Upon request, the bank compares 250 banks. Here may possibly still one or other special condition for the financing request arise.
Expert Opinion: Commerce bank cuts the mark with experts
Those who made it into the top group of German banks in recent years are doing a lot right. Commerce bank has been trying in recent years to focus more on customer interests. Building finance customers will appreciate this claim – but certainly looking for expert opinions. Experts, like:
- the business magazine Euro
- the Handelsblatt or
- Stock market on Sunday
Look at the offers of the bank regularly – and often draw a positive conclusion. For example, Commerce bank’s experience with the Euro magazine did not lead to the title “Best Branch Bank” until 2015. From the perspective of a client positive test results – but ultimately not decisive. But the Commerce bank also convinces here. The Handelsblatt attests excellent quality to the Bank’s construction advisory services – both in 2014 and 2015.
When it comes to mortgage lending, good conditions and trust count. Experts draw a positive conclusion for the Commerce bank offer. And that just a business newspaper like the Handelsblatt praises the bank for its consulting services in two years in a row, speaks for the Commerce bank. In the end, the Commerce bank experience report does not leave much to add to this opinion.
Further products: Commerce bank remains a universal bank
On the part of Commerce bank, borrowers can opt for in-house mortgage lending or rely on the comparison between 250 banks. This offer is currently rare on the market. At the same time, of course, Commerce bank is still a universal bank, which is not exclusively concerned with Commerce bank real estate loans. The company offers private and business customers very different services.
- payment services
- Cash investments or savings products
- the depository management
- Consumer financing.
Ultimately, this offers the opportunity to bundle all cash and non-cash payment transactions and also to take advantage of financing for the institution or similar. This has the advantage that the Commerce bank real estate loans can be secured with the already ordered land charge.
Tip: Under the umbrella of Commerce bank, a prospective client or property owner can also obtain information about the insurance protection of their property – for example with regard to construction and property owner’s liability insurance.
Of course, as a universal bank, Commerce bank does not leave it with real estate financing. Rather, the product portfolio of the credit institution covers the entire spectrum of the well-known banking services – from the current account over the depot and the credit card up to the installment loan. Whether the business relationship is extended beyond mortgage lending, each household must ultimately decide for themselves.