Full repayment loan: advantages and disadvantages

Full repayment loan explained: fixed interest period until the last instalment, calculation example against annuity loan with residual debt and what it means for landlords.

FAQ

Can I repay a full repayment loan early?

Within the first ten years only against a prepayment penalty (Vorfälligkeitsentschädigung) or via agreed unscheduled repayments. Thereafter, the statutory right of termination according to Section 489 BGB applies.

Are there full repayment loans with KfW funding?

KfW programmes have their own terms and fixed interest periods. Whether a KfW loan can be combined with a full repayment loan depends on the programme and the house bank.