Home loans have become sharply more expensive: interest rates rise above 2 percent, highest level in 3 years

More interest also means paying off more for the same amount of credit. “If you borrow 200,000 euros today, you now pay off an average of about 1,005 euros per month,” Immotheker illustrates. “At an interest rate of 1.40 percent, that was 955 euros, or 50 euros less.” Over the entire term, this means a difference of approximately 12,000 euros in interest payments.

The customer can still avoid the interest rate rise somewhat by opting for a variable interest rate. “Short-term interest rates have not risen nearly as sharply,” Romain illustrates. “For a 3/3/3 formula, you can still borrow at 1.20 to 1.25 percent.” There is a risk that you will have to pay more monthly in the future, but you could avoid that by extending the term.

It is still unclear how house prices will evolve if this trend continues.

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