Tilgungsstreckungskredit

Repayment discount loan
If a discount (Disagio) is agreed for a mortgage loan, the borrower receives an amount reduced by the discount when the loan is disbursed. This creates a financing gap. This must be closed by a so-called repayment extension loan. While this loan is being repaid, the main loan remains grace period. This leads to an extension of the term of the overall loan.