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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)

Related Terms

Land Charge (Grundschuld)Fixed-Interest Period (Zinsbindung)Early Repayment Penalty (Vorfälligkeitsentschädigung)Loan Discount (Disagio)

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German heating law 2026: New cost sharing rules for landlords
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Germany's upcoming heating law reform will fundamentally change how you handle heating costs as a landlord. Starting 2026, you'll share specific heating-related expenses with your tenants when operating fossil fuel systems—a shift that requires immediate strategic planning for your property portfolio.

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