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Is a Bausparvertrag useful when buying a home in Germany?

A Bausparvertrag is still quite popular in Germany. These are complex products that can be very useful, but also problematic.
Nick Mulder

Nick is Co-founder and CEO of Hypofriend

Published on Oct 28, 2019 Published on Oct 28, 2019 . Updated 5 months ago

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Nick is Co-founder and CEO of Hypofriend

A “Bausparvertrag” is a type of mortgage loan that is still quite popular in Germany and is provided by building societies (“Bausparkassen”). These are complex products that many people (including unfortunately most mortgage advisors) don't understand well. They can be quite beneficial, for example if you want to rule out any interest risk but also problematic. At Hypofriend, we, therefore, have built special calculators for this product that help us to evaluate with you if the product makes sense for you.