06 Dec 2022

Interest rates are rising: How to speed up your mortgage application in Germany

08 February 2022 , By Abi carter

Since the beginning of the year, property financing has become noticeably more expensive. More and more borrowers in Germany are trying to escape rising interest rates by locking down their mortgages as soon as possible. So what can you do to make sure your application runs smoothly? Your German Mortgage explains what you need to know. 

Even in Germany, the days of historically low interest rates seem numbered. Looking at the indications of the European Central Bank, an interest rate turnaround seems to be in sight. Rates for real estate loans have been rising for some time but, since the beginning of this year, the speed has increased. 

For example, the average interest rate on a 10-year fixed-rate mortgage loan amounting to 80 percent of the property purchase price is currently 1,49 percent. Around two years ago, at the beginning of the coronavirus pandemic, it reached the historic low of 0,62 percent. For 15-year fixed-rate mortgages, the rate has risen within two years from 0,89 percent to 1,69 percent. 

I specialize in international career and expat coaching. I am the author of the book Career Jump! How to Successfully Change Your Professional Path (www.careerjump.nl). I am a certified coach/counselor