Interest rates on construction loans have exploded in 2022. A year ago, loans with a 10-year term still had an interest rate of a good one percent, but now you have to reckon with three to four times as much.
Building has become dramatically more expensive, no question about it. For many interested parties, the dream of owning their own four walls seems almost unaffordable. But: The high interest rates can also have an advantage, albeit an expensive one. Because of the higher installments, the term of the loan decreases. Result: You are debt-free faster.
Even if it sounds paradoxical: You could be through with the financing more than 10 years earlier, construction finance specialist Henning Ludwig calculates exclusively for BILDplus.
