Mortgage interest – The term mortgage interest is replaced today by the term construction interest. The construction interest rates, or mortgage interest rates decide whether a construction financing is cheap or expensive. Due to the current historically low construction interest rates, you can finance your property very favorably and secure an advantage that has a lasting effect on the total cost of financing.
Do low mortgage rates affect construction loan amounts?
How to take advantage of the low interest rate
To benefit from the low mortgage rates, you should compare construction loans and decide on a competent consultation and a condition offer calculated for you. At Lukinski, we will find the construction financing that best suits your financing needs and offers the best mortgage rates.
Financing bank
The interest rate of the financing bank is significantly related to the mortgage rates. If you plan your construction financing in detail and apply at the right time, you can positively influence the estimated mortgage interest rates for your financing. These interest rates are a variable that can rise as well as fall. If you are flexible in planning a construction financing, your patience can ensure a particularly favorable offer and reduce your home purchase or home construction by several thousand euros.
Frequently asked questions about mortgage rates
The most frequently asked questions about mortgage interest rates in advisory meetings with clients:
How high are mortgage rates at the moment?
What are the interest rates on mortgage loans?
How will mortgage rates evolve?
How high are the interest rates at the savings bank?
Current mortgage rates more favourable than ever
Currently, mortgage rates for annuity loans and other forms of construction financing are so low that you can build, buy and finance when you want. Experts will determine the most favourable option for you and make you an offer that, in its entirety, includes a convincingly favourable construction loan amount and shortens your repayment period. Before signing a construction financing contract, we recommend that you take a close look at mortgage interest rates and use this knowledge to choose the right time for your financing project.
Mortgage rates are not, as is often inferred, conditioned by the ECB’s zero interest rate policy. Even if the key interest rate has an indirect influence on mortgage rates, it does not have a direct impact. The main component in the mortgage rate development is based on the economy.
When the economy is thriving, mortgage rates fall, while stagnation in economic strength is accompanied by rising mortgage rates. Refinancing of construction loans takes place via Pfandbrief transactions, whose interest rate depends on the interest rates for government bonds, which in turn are determined on the basis of economic strength.
External influence vs. personal influence
Basically, you can use the economic reports to draw a conclusion about mortgage rates and find out whether it is currently a good time to take out a construction loan. In addition to the external influences, you personally influence the mortgage rates.
As always: creditworthiness and equity capital are the decisive factors
The more equity you bring with you and the higher your credit rating, the more favorable the offer you will get for real estate financing.
Another important point is the amount of the repayment, with which you particularly influence your personal building interest.
Despite historically low mortgage rates, you should compare before taking out a home loan, look at the interest rate chart or call for professional services in search of your financing.
Mortgage rate comparison for building loans
We have a large network and helpful tools to determine the best construction financing based on your information and available facts. On your behalf, experts search for the most favourable conditions and make comparisons of different financing models and financing partners.
Financing strategy and financing models
Before creating a precise financing strategy for your home, they compare mortgage rates and consider the external influences currently present, as well as your personal financial background in relation to interest rate conditions.
When you finance with experts, you choose a low-cost path to homeownership and benefit from their knowledge of mortgage rate facts to find the best deal that suits you. Mortgage rate experts will advise you on repayment amounts and terms, equity use, and the differences between each type of financing. Secure the best mortgage rates now and finance your home or condo at a rate that will shorten your construction loan amortization period and give you new opportunities and many advantages in construction financing.
Calculator: Online & free of charge
Calculate here free of charge, online your individual mortgage interest:
