In November, real estate buyers and house builders had to pay less for their construction loans than ever before: the standard rate – calculated for a loan of 150,000 dollars, two percent repayment, 80 percent loan expiry and ten years of fixed interest rates – is currently 384 dollars. The standardized value that Dr. Published monthly since 2009, makes mortgage lending comparable. For the first time, it was less than 390 dollars – ten years ago, in November 2009, the standard rate was 821 dollars, more than twice as high.
Low mortgage rates affect real estate prices and affect the amount of the loan. With the increase in the price of home ownership, which is demonstrated, among other things, by the trend indicator real estate prices (DTI), more and more capital is required for the purchase. The amount of the loan increases accordingly: 12 months ago it was an average of 234,000 dollars, financiers are currently raising 266,000 dollars for their own home. In November 2009, they borrowed an average of 142,000 dollars from the bank.
Redemption rate and fixed interest rate decrease slightly
The initial repayment amount is freely selectable within the financial scope. And the higher it is set, the faster the loan is paid off and the lower the total costs. If the repayment rate was almost 1 before the decimal point in high interest rates, the initial repayment has been above the 2 percent mark since 2013; 2015 to 2017 also by three percent in some cases. Borrowers are currently starting to repay at 2.84 percent – slightly less than in the previous months.
The duration of the fixed interest rate is also one of the variables that is decided individually. A long fixed interest rate costs more, but also means longer-term security and little dependence on the interest rate at the time of follow-up financing. Until mid-2010, the average fixed interest rate was less than ten years, since the beginning of 2016 it has been consistently more than 13 years. Buyers and builders are currently setting their interest rates for 13 years and 10 months – three months less than in October.
Mortgage lending sinks slightly
The previous recommendation to pay 20 percent of the purchase price out of one’s own pocket in addition to the incidental purchase costs no longer applies. On the one hand, this is only realistic for very few in times of high real estate prices, on the other hand there are now many credit institutions that offer financing solutions with good creditworthiness even for high mortgages. In October the debt-financed share of the property value is 84.4 percent, slightly less than in October (minus 0.2 percentage points).
Forwards fall further, lender bank loans catch up
Forward loans continue to lose appeal: for the first time, their share is less than six percent. The background is the constant financing environment, from which no spontaneous or major interest rate increases are to be expected. The classic among the loan types, the annuity loan, on the other hand, accounts for more than 83 percent of the total volume. After the loans from the state-sponsored lender bank Bank became more popular again in October, they rose again in November: to a share of 6.71 percent.