Maturity of mortgage loans - Under what circumstances?

Hello dear people,

two years ago I bought a small terraced house for my girlfriend and me and some apartments as an investment and financed it through Allianz. Now I have planned the financing quite well and chose a 20-year full amortization, so basically not much can happen, although a residual risk can of course never be excluded.

What would not only ruin my returns but also drive me to ruin would be if the loans were suddenly due or terminated by the lender. My question to you is whether you have any theoretical or practical experience with when and under what circumstances this can and probably will happen?

I have heard that there was a change in the law in 2017. According to this legal change, lenders not only can but MUST call a loan due if the borrower's creditworthiness deteriorates. I would interpret this to mean that the loan could be terminated if, for example, I take a lower-paying job, even though I am still servicing the loan installments.

Does anyone know more about this? Thanks!

Christian

What would of course not only ruin my returns but also drive me to ruin would be if the loans were suddenly called due or canceled by the lender. My question to you is whether you have any theoretical or practical experience with when and under what circumstances this can and probably will happen?

If you pay your installments, exactly one thing happens - namely nothing! Period. End. Banker answer. ;-)

How does the bank know if you change your job? There is usually no continuous monitoring as long as you make your payments in an orderly manner...

Why should the bank just terminate the contract like that? Just because of the job? Nonsense... It’s none of their business where you get your money from as long as you pay your installments on time. Elektrikerantwort :D

If you pay your installments, exactly one thing happens - namely nothing!

Period. End. Banker’s answer. ;-)

That would be the answer considering only Building Code 498 alone.

However, there is also Building Code 490. That is not so clear; in particular, a significant deterioration (even if only threatened) could lead to or enable action by the bank.

But more has to happen than just less money from a new job.

As long as the value of the collateral would be sufficient to service the loan, a bank basically cannot rely on this paragraph.

Thank you for your answers! So I take the following with me and had already thought so myself: The bank would legally have options to demand repayment of the loan immediately, especially since "Wesentliche Verschlechterung der Vermögensverhältnisse" is not precisely defined and has to be interpreted by courts.

However, the banks will probably not do this as long as the installments are flowing because they assume that it would be to their financial detriment. Which is probably also true.