D.he knowledge of Germans about home financing is moderate. 10 percent know their way around, as professionals know, and 60 percent have moderate knowledge. At 30 percent – with all due respect – hops and malt are lost. You have no idea of this. In the nature of things, people with a good education and high income are usually better informed. So it’s no wonder that in many cases, average income and savvy homeowners are unaware of the adventure they’re embarking on. Around 70 percent of homeowners do not know what an annuity loan is, and around 80 percent of private individuals do not know what a prolongation is. What can I say?
The scant knowledge calls for a remedy, because home ownership and borrowing after marriage and children are among the most dangerous investments in life. But it is written in the stars how this should work in practice. Banks are interested in stable loans, but their interest in informed customers is limited. Consumer advice centers have been trying hard for years to inform private individuals about the benefits of owning a home and the consequences of borrowing, but they are fighting windmills due to a lack of money and staff. And what about the consumers themselves? They should actually have the greatest interest when it comes to house and debts, but the reality is different. In many cases, there is a lack of willingness to delve into the subject, and the masses trust higher powers that it will somehow work out. That’s what I call trust in full life!