Loan Repayment (Tilgung)
Loan repayment (Tilgung) in German property financing: initial repayment rate, unscheduled repayments, and impact on the total loan term.
Financial
§ 488 BGB
Also known as: amortization, principal repayment, mortgage repayment
With an annuity loan (Annuitätendarlehen) under German law, the monthly payment consists of an interest portion and a repayment portion. The initial repayment rate is typically 1-3% per year. Unscheduled repayment rights (Sondertilgungsrechte) allow additional payments, usually up to 5% of the loan amount per year. (§ 488 BGB)
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