Deutsche Information

How does it work?

Bausparen is considered a contractual savings scheme and, in few words, links a savings phase to the right to receive a mortgage loan. Although Bauspar savers receive less interest on their deposits than do others, they are charged less for their loans in exchange. Further, interest rates are fixed for the whole contract term. This is what makes Bauspar loans very attractive.
A Bauspar contract concretely may be divided into 4 phases:

  • First, the contract itself is determined. With the Bauspar contract the lender and the borrower agree on the contract sum, the savings rate, the rate of repayment and the interest rates for the savings and the loan period.
  • During the following savings period, savers normally save about 40% to 50% of the total contract sum. The savings phase generally takes savers about 5 to 6 years.
  • Having concluded the savings phase, borrowers may take up their loan which consists in the difference between the saved capital and the contract sum. As the Bauspar system is based on a self-sustaining fund (that consists of deposits and repayments), sometimes, customers have to put up with a short waiting period until they may get their loan. Specific queuing rules determine the sequence of the loan disbursements to the customers.
  • After having received their loans, customers start with repayment. The interest rate of the loan usually is about 2% higher than the one for savings. Bauspar customers may repay more than their contract foresees and whenever they prefer to do that. They are not charged any prepayment penalty.


EFBS press release: EFBS reaffirms criticism of Capital Markets Union

OEE Newsletter of March 2015: "Savings in times of lowest interest rates – savings culture at stake? Some thoughts on the present and future of savings"

EFBS press release: Plans for new Green Paper jeopardize sustainable investments

EFBS press release: Zehnder re-elected as Managing Director

EFBS press release: IUHF 100th anniversary

EFBS press release: Consideration of low risk models under the Deposit Guarantee Schemes’ Directive

 EFBS press release: Board of the EFBS re-elected

IUHF press release: Zehnder leads the world federation IUHF

EFBS press release: 50th anniversary of the EFBS

EFBS press release: EFBS welcomes the measures of safeguard proposed in the report of the Liikanen-Group

EFBS press release: European Bausparkassen welcome the result of the vote on the Mortgage Credit Directive

EFBS press release: Mortgage Credit Rules are Counterproductive

EFBS press release: European Commission‘s plans will adversely affect mortgage finance mechanisms 




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