About Bausparen 

Bausparen - Appealingly Simple and Secure

The typical virtue of Bausparen is the combination of systematically accumulating own assets by means of a Bauspar loan with a low and stable interest rate. The accumulated own assets provide that the financial burden remains feasible and within limits, the loan’s fixed interest rate offers protection against rising market interest rates.

Bausparen in Germany

Bausparen is an important factor of housing supply, of creating equity and of personal old-age provision. Since the end of World War II, the German Bausparkassen (i.e. Contractual Savings for Housing companies) have been providing more than 1,000 billion euros for housing finance. Thus, over 13 million housing units, among these 9 million newly built, have been co-financed by the use of Bauspar assets. Besides that, an unknown number of financings were used for modernisation and renovation plans, for refurbishments and enlargements as well as for acquiring construction land.

Today, about 80 million people who live in Germany keep around 30 million Bauspar contracts.


The concept of Bausparen is seductively appealing

Bausparen (Contractual Savings for Housing) is a simple, secure, and sustainable financial product that is suitable for anyone who wants to build, buy, or modernize a property. The basic concept is seductively appealing: During the first phase, the customer makes regular deposits into the savings account, up to a minimum of half of the agreed total funds to be disbursed, building up the balance over time. The remaining amount is later disbursed to the customer by the savings institution as a loan, and the customer repays this loan in monthly installments. Simply put, the Bausparen process is divided into two phases, the savings phase and the loan phase. The system is based on a mathematical formula that ensures that all customers are treated equally, factoring in the period of time over which the individual customer will be saving money as well as the amount.

A guaranteed interest rate provides reliability

With Bausparen, the interest rate on both the savings and on the loan is determined by the time the contract is signed, which means that customers can be absolutely certain of the interest throughout the entire term of the contract. The loans that are issued are funded from customers’ deposits, meaning that all of the money saved remains in a closed system.

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Bausparen offers further attractive product features 

Schwäbisch Hall Bausparfuchs zeigt mit dem Finger nach vorneMore

State supports saving for housing

Due to the fact, that Bausparen has a beneficial effect on a country's entire economy, the state supports Bauspar customers with a special saving bonus. 

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State supports Bauspar customers with a bonus

Schwäbisch Hall Bausparfuchs zeigt mit dem Finger nach vorneMore

Bauspar law provides maximum security

Bausparen has proven successful for over 90 years. One essential reason is the fact that Bausparen is secured by special legal regulations.

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Bausparen is regulated by legislation 

Schwäbisch Hall Bausparfuchs zeigt mit dem Finger nach vorneMore

Use of Bausparen

Bausparen can be used for the following

  • Saving of own capital
  • Financing to buy or built property
  • Financing to buy the land to build property on it
  • Financing modernisation / renovation of property
  • Financing the extension of property
  • Financing of measures to improve the energy balance of property
  • Financing of measures  to ensure fully accessible living in property
  • Refinancing of other housing loans