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How much equity should I contribute?

How much equity should I contribute?

It is often recommended to contribute at least 20% to 30% of the purchase price as equity when financing a property. The reason for this is that such an equity ratio can help reduce interest costs and significantly improve the chances of loan approval. By contributing equity, you demonstrate your financial stability and commitment to the project to the bank, which may result in the bank offering you more favorable terms. Additionally, a higher equity ratio can help lower your monthly repayment amounts, thereby reducing your monthly expenses.

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© 2023-2025 Vier Wände UG (haftungsbeschränkt)

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© 2023-2025 Vier Wände UG (haftungsbeschränkt)

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