For mortgage lending, it is currently cheaper than ever to get historical terms. The dream for many to afford a home or a condominium can currently be realized very well, because the interest on a building loan has been cheap for a few months like almost never before. Financing your own home is currently extremely worthwhile because a cheap loan is currently easy to get.
Low interest rates – a continuing trend?
The Cream bank maintains a low key interest rate of 0.75%, as has been known for the past few days. Exactly this means that since the introduction of the euro, it has been cheaper than ever for banks to borrow money from the Cream bank. These favorable conditions are now being passed on to consumers in the form of home finance.
Cheap money for building a house is welcome among consumers – they should also opt for building finance as soon as possible, because the trend of favorable conditions for building finance can also tip over again. That is when Germany hits the recession and investors in Germany no longer see the current security in their investments. Despite the debt crisis, Germany is currently on the podium of European countries in terms of economic development. German bonds and Pfandbriefe are safe investments that guarantee good mortgage rates.
Experts expect, however, that Germany’s economic situation will also be affected by the debt crisis. As a result, this would also result in a rising interest rate for home finance and loans.
Historically low conditions
Such low interest rates for a building loan, even over 15 or 20 years, are almost historical and must clearly be seen as an opportunity for building finance. The circumstances of termination for borrowers speak even more for the current commitment to mortgage lending. After only 10 years, the borrower can cancel all or part of his mortgage with a six-month notice period. This is an immense advantage for building owners, because they can avoid high interest rates for their home financing.
Despite the temptation of low interest rates and favorable conditions for building finance, you shouldn’t put on pink glasses and let yourself drift on the wave of blind euphoria. Rather, it is still necessary to calculate exactly which mortgage lending is best for the individual borrower. The only thing is that one should give priority to one’s own home financing project, since the certainty about the trend of low interest rates is not exactly that: certain.
Astro Finance closely follows the trends and correlations between business and finance and currently offers a top interest in mortgage lending. By working with various institutes, companies and various providers, we are happy to offer you your individual advice, inform you about trends or warnings and how you can best achieve your dream of owning a home.