Bullet loan

Unlike the annuity loan, there is no monthly repayment with the bullet loan. Instead, you only pay the interest that accrues monthly. Only at the end of the term you pay the loan — and all at once. Therefore, in most cases, you need a building loan contract or life insurance to take out a bullet loan.

By the way, a bullet loan is most likely to be used for rented properties. You can then claim the interest against tax — as current income-related expenses. Quite nice, isn't it?

You can find out more about bullet loans — and many other types of loans – in our podcast episode "Alles Annuitätendarlehen oder was?

Note: German audio only


Find useful real estate terms and abbreviations here.

Go to dictionary