• A solid basis:

By saving this way, Bauspar customers build up their personal assets and thus the foundation for solid housing construction financing. The amount of the total to be financed stays within tolerable limits.

• Not dependent on the capital market:

Bauspar customers' savings are used for the issuance of loans. This closed system makes it possible to provide low interest rates on the loans, and customers don’t need to depend on developments in the capital market.

• Fixed interest rates:

The interest rates during the savings period and the loan phase apply for the whole term, starting from the date the contract is signed. Bauspar customers also acquire a legal right to the Bauspar loan once the contract is signed. Consequently, they already know today what their loan will cost tomorrow, the day after tomorrow, or in ten years. By contrast, the interest rate on mortgage loans depends on the situation in the capital market, or more precisely, on the interest rate at which the lending institutions are obtaining financing for themselves. Customers thus take the risk that the interest rate will go up.

• Safe investment:
  

Bausparen is absolutely safe. The legislatures in Bauspar countries have created a reliable legal framework that imposes the strictest of regulations on Bauspar institutions and protects customers’ savings accounts. Bauspar institutions issue loans exclusively from the funds they have available. Thanks to this self-enclosed system, not one Bauspar customer lost even a cent during the financial crisis.

• Flexible products:

Bauspar customers can choose between different rate plans, allowing them to tailor their housing construction financing to their individual needs. Many different housing-related dreams can be financed with Bauspar funds – from the alarm system to the second garage.