What follow-up financing is
When the fixed-rate period of your property loan ends, the loan is usually not yet repaid. The remaining balance needs new terms: that is follow-up financing (Anschlussfinanzierung). The new rate can be higher or lower than the old one; this decides whether you pay more, pay for longer or finish sooner.
The calculator determines the balance from your previous loan's key figures or takes it directly from your bank statement. It then shows three ways forward: keep paying the same amount, choose a new repayment rate or set the payment so you are debt-free at the planned time.
Prolongation, refinancing or forward loan
- Prolongation: you extend with your current bank on new terms. The land charge stays, and no notary or land registry fees apply.
- Refinancing (Umschuldung): you switch to another bank. It pays off the old loan and takes over the land charge; assigning or registering it costs notary and land registry fees.
- Forward loan: you secure the rate months or years before the fixed-rate period ends. The bank usually charges a premium for each month of lead time, which it sets itself.
Get an offer with the annual percentage rate for each option; that is the only way to compare costs.
Worked example: €228,283.70 balance, rate rises to 4%
The prefilled example comes from the mortgage calculator: a €300,000 loan, 3.5% borrowing rate, 2% repayment, €1,375 payment. After 10 years €228,283.70 remain. The new borrowing rate of 4% is an example value, not a forecast.
- Keep the payment: you keep paying €1,375. The loan is repaid after another 20 years and 3 months, 15 months later in total than at an unchanged rate.
- Keep the remaining term: to finish as planned after another 19 years, the payment rises to €1,431.05, that is €56.05 more per month or €672.60 per year.
- New repayment of 2%: the payment falls to €1,141.42, but €172,258.96 is still outstanding after another 10 years.
Right of termination under § 489 BGB
If the fixed-rate period ends and no new rate has been agreed, you can terminate the loan with one month's notice at the earliest for the end of the fixed-rate period (§ 489 (1) no. 1 BGB). This lets you switch to another bank.
Regardless of the fixed-rate period: 10 years after full disbursement you can terminate with 6 months' notice (§ 489 (1) no. 2 BGB), even with a 15 or 20-year fixed rate. If you agreed a new rate or term after disbursement, the 10 years start from that agreement. This right cannot be excluded by contract (§ 489 (4) BGB).
If you terminate under § 489 BGB, you owe no early repayment charge. If you repay a loan early outside these rights, the bank may charge one (§ 490 (2), § 502 BGB). Check your agreement or ask your bank before you terminate.
Forward premium in the calculator
Enter the premium of a forward loan under "More assumptions" in percentage points. The calculator adds it to the borrowing rate: 3.7% plus 0.3 percentage points gives 4.0%.
Whether a forward loan pays off depends on how rates develop until your fixed-rate period ends. Nobody can reliably say that today, so the calculator only shows what a given rate means for payment and term.
Common mistakes with follow-up financing
- Starting too late: termination under § 489 (1) no. 1 BGB needs one month's notice, and a new bank often takes several weeks to review.
- Only comparing the payment: if the payment stays the same, the term can get much longer.
- Accepting the prolongation offer unchecked: compare it with other banks' offers by the annual percentage rate.
- Forgetting switching costs: refinancing adds notary and land registry fees for the land charge.