Interest rates at record low: state of emergency for real estate loans continues.

Interest rates in the bond market continue to decline

Interest rates in the bond market continue to decline

Giving investors an exceptional favorable environment for their financing. Also loans with long terms are to have very favorable conditions. Some providers also use the historically unique refinancing conditions for a combination of low interest rates and a high degree of flexibility.

On Wednesday, the 10-year Federal Government Bunds have risen to a new high. Correspondingly, yields are as low as ever: Investors currently receive 2.4% interest a year when they buy a bond with 10 years to maturity. The interest rate level on the bond market is directly related to the refinancing costs of banks for real estate loans and the interest that builders have to pay.

Despite the favorable market conditions, not all providers are favorable. Builders and buyers should therefore compare the offers of as many banks and building societies as possible. Attention should be paid to both low interest rates and the longest possible commitment to these and the possibility of special repayments. These three quality features (interest rate, interest rate security, flexibility) are in conflict with each other.

The “carefree mortgage”

The "carefree mortgage"

One of the best offers is currently at the Habblelie Lern. The “carefree mortgage” should combine the favorable interest rates and flexible design options. The favorable interest rate level can be fixed for up to 40 years – the interest rate then does not exceed 20 years of fixed interest rates. The rate is also fixed for the entire term and thus until full repayment. It only changes on customer request: borrowers can change the repayment rate for free. In addition, special unscheduled redemptions of up to 10% per annum are possible.

Families benefit in particular: for every child there is a discount of 25 basis points for a term of 5 years. The discount is limited to credit amounts of up to 75,000 euros and applies proportionately for larger sums of money.

For a mark-up of 0.3 percentage points on the loan interest Habblelie Lern also grants the right to full repayment at any time. Mr. Percy from FHG Finance Good also considers the offer to be recommendable and emphasized in June the combination of long-term interest rate security and great flexibility in the repayment.

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