Compare current loan interest rates and save money promptly with our follow-up financing options!
In the current economic landscape, securing the right financing for your home or business is crucial. Here's a breakdown of the latest trends in mortgage and housing loan rates in Germany, as well as some insights into consumer and business loan rates.
Mortgage and housing loan rates in Germany have remained stable but elevated, with increases expected in 2026. This is due to recent increases in government bond yields, which have mirrored these mortgage rates. Retirees looking to refinance their homes should be mindful of the factors that affect the height of the interest for follow-up financing, such as their present debt on the loan.
When refinancing, retirees are advised to present an income and expenditure calculation to the bank, choose a high repayment, and include special repayment options in the contract. Additionally, it's essential to consider additional costs for a new ground book entry and processing fees, as well as the need for a new creditworthiness check.
For those with negative SCHUFA entries, taking out a new loan may be challenging, but a follow-up financing is not entirely ruled out. In such cases, it's advisable to speak to your bank immediately in case of payment problems to avoid potential issues.
If you're considering a follow-up financing, it's worth comparing offers from your current bank and other providers. You can secure a fixed interest rate for your follow-up financing in advance with a Forward Loan, although this may incur a premium that varies depending on the bank and averages 0.02 percentage points per month.
When concluding the follow-up financing, it's recommended to agree on a sufficiently long period without readiness interest until the loan is disbursed. The range of follow-up financing options is diverse, with longer terms usually having higher interest rates than shorter terms.
It's also possible to use a building savings contract as follow-up financing, which allows you to conclude a building savings contract up to 15 years in advance and secure the interest rate for your mortgage loan at an early stage.
For those looking for a specific financing type, such as car loans or personal loans, effective borrowing rates vary widely depending on term and amount. However, for fixed-term loans of 24 to 84 months and amounts between 3,000 and 50,000 EUR, rates often fall between 4.84% and 5.99%.
In the case of new loans to firms in Germany, the average interest rate was around 3.8% in April 2025. This reflects somewhat less restrictive financing conditions overall but does not directly translate to consumer mortgage rates.
In summary, the current best interest rates for follow-up financing in Germany, such as mortgage or housing loans, are expected to remain broadly stable in 2025, with little downward potential. Consumer loan rates vary broadly, with fixed-rate loans often in the 4.8% to 6% range for common terms and amounts. Average new loan rates for firms are around 3.8% as of April 2025.
When it comes to refinancing, it's essential to start informing yourself about current interest conditions at least six months before the end of your interest rate commitment. If you don't attend to your follow-up financing in time, your construction loan will automatically convert into a variable loan with interest rates oriented towards the current market.
You can negotiate follow-up financing with your current bank, who may offer an extension of your construction financing. However, it's always worth comparing offers from your current bank and other providers to ensure you're getting the best deal.
[1] Source: Deutsche Bundesbank [2] Source: Finanztest [3] Source: European Central Bank
- In the realm of personal-finance, taking out a new mortgage or housing loan in Germany may necessitate attending to follow-up financing considerations, as the current best interest rates are expected to remain stable but elevated in the coming year.
- Investors seeking to enter or expand their portfolios in the real-estate industry might find it advantageous to carefully analyze the trends in mortgage and housing loan rates, as changes in these rates can significantly impact the financial outcome of their investments.
- When exploring funding options for personal or investment purposes within the finance industry, it's important to factor in the varying effective borrowing rates for different types of loans, such as car loans, personal loans, and business loans, to make informed decisions and optimize the returns on investing.
