Interest rates in Germany

Interest rates for property loans in Germany are at an all-time low.
You can get borrowing rates from as low as 0.25% p.a. fixed for 5 years or 1.06% p.a. fixed fro 25 years*. 

Nevertheless, your personal interest rate is dependent on several factors:

  1. Loan  Conditions
    e.g. value of property, mortgaged %/own capital, loan term, annual redemption
  2. Property valuation
    e.g. type (house or apartment), location, age, property size
  3. Your personal financial situation 
    e.g. income, savings, employment type (employed or self-employed)
  4. Financial institution
    Interest rates also follow competitions between banks/insurance companies
Especially due to new EU regulations from 2014 (directive 2014/17/EU) to protect consumers, banks have to be more restrictive in credit agreements relating to residential immovable properties. This directive requires banks to no only assess the current creditworthy of the borrower but also include predictions how the borrower’s income will change in future. 


Due to general low interest rates on the market, also insurance companies are striving to get into the mortgage market and offer property loans and good interest rates. 

In general it is recommended to consult an independent mortgage/financing consultant to get the best offer for you. 

We are happy to calculate your potential interest rate, consult you and find you a very good interest rate. 

* As per 28/10/2019; assuming 150.000 EUR loan amount, 60% mortgaging, redemption of 2%p.a.; source:

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