Beleihungswert

The collateral value, or Beleihungswert, represents the value that you can achieve when selling your property at any time. This is estimated by the bank. The collateral value is based on the purchase value but considers a possible safety discount. Such discounts differ by bank. Therefore, the actual interest rate a bank may offer to you may differ from the rate you might think would apply to you. More importantly, it may mean you need more money for a down payment. An early consultation with your trusted mortgage advisor can save you many disappointments.