Real estate in Germany – mortgage interest at its lowest

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Real estate in Germany – mortgage interest at its lowest

Posted by Tanya Yujelevski on 30/04/2020
Real Estate in Germany - Blog | Sweet Home

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Mortgage interest rates in Germany at a historic low

For those in Germany who are confident enough to plan real estate financing over the next few years, despite the current epidemic uncertainty, property rates have reached an all-time low.


Mortgage interest rates can be found at ..


a net 0.44% rate for ten years from the most positive lenders. And according to financial services provider Dr. Klein Privatkunden – the lowest rate there is. Last January was the lowest rate – 0.60%. These rates will apply to borrowers with a very good credit rating.  And those who are looking to borrow no more than 60% of the property value.

Compared to a € 200,000 loan at 1.5% interest and a 3% annual return, 0.7% and the same conditions would show interest savings paid after 10 years of € 13,000. According to Michael Neumann, CEO of Dr. Klein, “As long as things remain so uncertain because of the Corona virus, this new interest rate situation will not change. We would not even rule out a record lower than the current one.”

The mortgage broker Interhyp, shares that the best rates for property loans have fallen 0.1% since February. Those looking to fix their loans for another ten years can often find lenders offering interest rates below 0.7%. This is also applicable for new buyers. Interhyp also sees a clear link between the Corona virus and low rates. Interhyp board member Mirjam Mohr, responsible for the private client business lending platform. “All the uncertainty surrounding the outbreak of the virus has a huge impact on the market, including a mortgage loan.”

After the federal state recently lowered interest rates by 0.5 percent, Mohr believes mortgage rates will remain at the current low level for a while. Interhyp compares offers from more than 400 German banks for the best offers. They see a plethora of offers for borrowers with a good credit rating of 0.6%. Those with excellent grades and good equity should be able to obtain 0.4% interest. Like Dr. Klein, the best offers are 0.31%, while even the mortgage broker Hüttig & Ropf puts the best “realistic” offer at 0.35%. You can even find fixed-term loans for 15 years for 0.5% for those with excellent credit ratings.


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