Mortgage financing with a 10-year fixed interest rate increases to four percent

The ECB raises key interest rates, which is not without consequences. Savers are happy with higher interest rates for call money and fixed-term deposits, even if they don’t escape the real interest rate trap. The dark side comes with people who want to borrow money. Meanwhile, the dream of a property quickly breaks through as interest rates are rising massively.

The expert gives no hope

“After the interim low in mid-August, interest rates have steadily risen to 4%. In 2011, the conditions for loans with a 10-year fixed interest rate were so high for the last time, ”he says Mirjam Mohr, board member of Interhyp’s private client sector. He has no ready hopes for those interested in construction financing: “Interest rates are unlikely to drop significantly again in the foreseeable future. In the coming weeks and months, nothing will likely change in the overall economic situation, made up of rising inflation, tightened monetary policy by the ECB and high yields on German government bonds. We therefore expect interest rates to continue to rise moderately ”.

An example calculation shows how much an interest rate change of just 0.5 percent affects: with a purchase price of 400,000 euros, a 2 percent refund and an interest rate of 3.5 percent, the monthly rate is of 1705 euros. With the same conditions but an interest rate of 4 percent, the monthly rate is already 1860 euros. This is an additional charge of 155 euros per month.

The example calculation in detail:

Average purchase price: 400,000 euros
Net worth: 50,000 euros
Depreciation: 2%
Interest rate: 3.5%
Fixed interest rate: 10 years

Monthly rate: 1705 euros

Average purchase price: 400,000 euros
Net worth: 50,000 euros
Depreciation: 2%
Interest rate: 4%
Fixed interest rate: 10 years

Monthly rate: 1860 euros

If you want to keep track of the current conditions, you can do it on InterhypWebsite still.

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