Many a borrower is annoyed that he has not waited a few more years to receive his real estate loan. Finally, the interest on real estate loans has fallen dramatically in recent years, construction money is very attractive and even larger financings can be saddled in conjunction with a manageable interest burden.
When it comes to mortgage lending, the conditions for builders and homebuyers could hardly be better: The Greek crisis has led to a decline in interest rates – among other things, mortgage rates have also fallen. The current conditions for mortgage rates are very attractive, they are among the best conditions for decades.
The result is real estate loans that are extremely cheap
However, it would be a fallacy to go directly to the next bank and sign a loan agreement there. Because despite the low interest rates, one thing has not changed: Who wants to complete a low-priced real estate financing, can not avoid a comparison of conditions.
The problem is first and foremost that banks handle very different margins. On the one hand, there are banks that are taking advantage of the moment and making hefty margins: the loans are still cheap because of low interest rates. On the other hand, there are banks that work almost without margins and want to reach their sales goals – and they deliberately focus on forgiving their margins in order to win even more customers.
Interest rate differentials are large
Particularly in the case of long-term interest rates or interest rates of 15 and 20 years, the interest rate differentials are large. As the “MFI Bank ” announced only a few days ago, there are interest rate differences of up to 0.9 percent in this area. At first, this may not sound impressive, but even an interest rate differential of 0.1 percent can lead to unnecessary interest of several thousand euros in terms of the total duration of financing. Therefore, interest rate comparison before loan taking is even more important.