After the interest rate shock two years ago, the housing market literally collapsed. But now there are first signs of recovery. The decline in purchase prices slowed down significantly at the beginning of the year. And in the first quarter of 2024, banks in Germany granted around 11% more loans to private households than in the first three months of 2023. The high rents for new contracts for rental apartments and the significantly lower construction interest rates at the turn of the year contributed to this. Construction loans have become somewhat more expensive again. In our current comparison, the average effective interest rate for financing 80% of the purchase price is 3.64% with a ten-year fixed interest rate.
Building interest development
The chart shows the average interest rates for 80% financing:
Why comparing building interest rates is worth it for you
Current construction interest rates
In our Construction Interest Calculator (available after activation) you will find the monthly updated construction interest rates from over 60 banks, insurers, building societies and credit brokers. The comparison shows: The most expensive banks often charge more than one percentage point more interest than the leading providers. Anyone who takes out a loan from the cheapest provider instead of the most expensive provider will save tens of thousands of euros by the end of the fixed interest rate.
The cheapest supplier for your case
You can in our Construction Interest Calculator (available after activation) Find the cheapest provider for loans with fixed interest rates of 10, 15 and 20 years and for 60 percent financing, 80 percent financing and 90 percent financing. You will also find the current conditions for KfW loans. Data as of June 27, 2024.
Construction lenders’ loan conditions
Our comprehensive overview shows you the loan conditions of over 80 construction lenders. No matter whether you are looking for a provider with particularly flexible repayment options or a bank with a particularly low minimum loan amount or a particularly high maximum loan amount – you will certainly find what you are looking for here!
Step by step guide to getting a loan
Detailed step-by-step instructions show you how to best find the right financing. With the help of the included calculator, you can determine, among other things, the loan amount and the correct repayment rate. Financial testing experts also explain how banks calculate their conditions and which criteria influence the interest rate.
Journal article in PDF
After activation, you will also receive access to the PDF of our extensive loan comparison from Finanztest 24/04. The article shows four model cases in which you can save up to 84,000 euros by choosing the right loan. You will also receive the article “Find personalized interest rates” from Finanztest 2/24.
Find the best interest rates for your home loan
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For whom the comparison of construction interest is important
Interest rates are much higher today than they were in the long period of low interest rates until spring 2022. Property prices have fallen since then, but are still high. As a result, many potential builders and buyers have had to abandon their plans. But: In the long term, interest rates are still cheap. And no decline in property prices is expected. For those who can afford to pay high monthly payments, there is nothing stopping them from realizing their dream of owning their own home. Our comparison of construction interests can help.
Real estate credit: Get and compare different offers
To find the cheapest offer for your mortgage loan, the borrower should always obtain offers from several providers, including at least one credit broker. You should make sure that you always make the same specifications. Tip: It is best to determine the most important key data before the first consultation:
- How much should the loan be?
- What monthly fee do you want to pay?
- How long should interest be fixed?
Important: Only if the specifications are always the same can the offers really be compared.
Go to the consultation prepared
Our Construction Finance Practice Test shows that you often can’t trust the advice of a construction lender. So follow our step-by-step guide to prepare for your bank interview. We also offer free help Home Loan Calculator It’s ours Refund Calculator.
Mortgage interest rates for various financing cases
In our monthly comparison of building finance interest rates, we ask about the conditions of a typical financing case: The model customer buys a property for 400,000 euros and requires 60 percent financing (240,000 euros), 80 percent financing (320,000 euros) or 90 percent financing (360,000 euros). The interest rate is fixed for 10, 15 or 20 years and the repayment is 2%.
Once a year we also check the conditions for model cases that deviate significantly from the average. People concerned about security, for example, want a Full Repayment Loanyoung families need one if possible flexible loan and owner of an old building Loan for modernization. You can find the conditions under the links provided and in the Finanztest 4/24 magazine article.