Construction rates at an annual low

A building loan currently costs an average of two percent – for 20 years. However, this could mean that the absolute low has already been reached.

Now cheap to finance.

Dhe interest rates for long-term building loans in Germany have fallen to their lowest level of the year. This is reported by the Internet portal Biallo both for building loans with a fixed interest rate of 15 years, for which an average of 1.78 percent would be charged, as well as for those with 20 years of age, for which an average of 2 percent is paid. In early August, interest rates on home loans with shorter terms were roughly the same as in January.

According to the FMH-Finanzberatung, Allianz with 1.4 percent and Degussa Bank with 1.53 percent APR for a purchase price of 500,000 euros, a loan of 250,000 euros and a loan of 250,000 euros are among the cheapest providers of mortgage loans with fixed interest rates for 15 years initial repayment of 3 percent. For ten years of fixed interest, Degussa Bank charges 1.07 percent, PSD Bank Cologne 1.11 percent and Allianz 1.14 percent.

How will the building interest continue? Falko Schöning, Head of Product Management Loans & Pensions at Commerzbank, says: “We expect mortgage interest rates to rise slightly in the next two to three years.” In the historical context, building interest rates remain extremely low; this applies in particular to the real interest burden, i.e. the amount of interest after deducting inflation. “

In a survey by the intermediary portal Interhyp among various providers of mortgage lending, most interest rate experts took the view that mortgage rates would move more or less sideways in the short term. For the course of 2018, however, the majority predicted slightly rising interest rates. Postbank said: “We see the ten-year federal return at 1 percent over a twelve-month period. The interest rates for longer-term mortgage loans should rise moderately in the course of this. “