Current construction interest rates: comparison, development, calculator & real estate financing

Building interest rates – For several years, the building interest rates are stable low. But which trend will the building interest development follow and is it worthwhile to fix a long debit interest commitment now and to protect yourself from a possible interest rate increase? Or do the construction interest rates continue to fall and you finance too expensive, if you decide now for a fixed interest rate with a term of 10 or even 20 years? If you understand the interest rate chart and use the interest rate barometer correctly, you will get a transparent overview of the current and future construction interest rate development.

Understanding the development of construction interest rates

The current construction interest rates are around 0.9 to 1 percent effective, for a standard financing. A so-called standard financing means that the loan amount is 80 percent of the value of your property. Meanwhile, the fixed interest rate is 10 years.

Current: 0.9 to 1 % effective

How to use the interest rate barometer correctly?

The most important instrument for determining the development of construction interest rates is the interest rate barometer. We recommend that you always observe a longer period of time and thus obtain a concrete overview of the interest rate development. The chart shows you the months in which the mortgage was particularly favourable and the relationship between the specific interest rate and the term. Because not only the economically dependent construction interest rate development, but also the period of your personal debit interest commitment influence the interest rate of your construction financing.

Building finance calculator

If you use the construction financing calculator, you can find out what conditions you will receive for your construction financing by specifying your desired term and loan amount. To find out whether you can finance cheaper or more expensive than, for example, a year ago at the same time, the interest barometer offers you helpful and transparently presented information.

Many questions are asked during consultations, especially by customers who are building for the first time:

  • What is the current construction interest rate?
  • When will construction interest rates rise again?
  • Can construction interest rates fall further?
  • What are the current interest rates on loans?

Building interest rate development: view charts, understand charts

Surely, like most potential owners, you are primarily guided by the timing of your desire to purchase a home or condominium. Even if your feeling is that it is always the right time to buy real estate, you should consider the construction interest rate trend as an important indicator for favorable financing. If interest rates are at a low point, this circumstance can add up to a few thousand dollars on a construction loan. For this reason alone, you should not disregard the construction interest rate trend and also tend to assume that construction interest rates can rise at any time and make the loan more expensive in its entirety.

First of all, let’s take a look at the influencing factors that play a key role for you in the lending process.

Factors influencing construction interest rates

If you are looking to take out your home loan with your bank or high street bank, there are a few factors that will affect the interest rate. These include:

  • Creditworthiness – Do you have the necessary equity capital?
  • Employment – What is your employment status?
  • Postcode of the property – Good or less attractive location?
  • Use of the property – capital investment or owner occupation?

A look at the past of the construction interest rate development shows you how the financing interest rates have fallen year after year. A forecast for the future also shows you that the low interest rate will not remain permanently. It is quite noticeable that the construction interest rate development will follow a new trend in the coming years and will rise again over a longer period of time.

Building interest comparison: advantages & conditions

When comparing construction interest rates, most future owners think of the debit interest rate, which truly has an important influence on the overall conditions of a real estate financing. But a good construction loan is not primarily recognized by favorable debit interest. On top of that, compare the effective interest rate and the general conditions, as these factors have a decisive influence on your satisfaction with the financing. Experts support you with core competence and advise you in detail on all criteria that are important in the comparison of construction interest rates. With us, you will find the optimal construction interest rates without detours and can save several thousand euros through the comparison.

Advantages in terms and conditions through comparison of building interest rates

What is important in the comparison of building interest rates?

Before you make the construction interest rate comparison, you should inform yourself about the influential details.

Did you know that you can influence construction interest rates simply by changing the fixed-interest period? The shorter you finance, the more favourable the building interest rates become. It is therefore worthwhile to compare different financing models and terms and to find out which concept will enable you to fulfil your dream of owning your own home at a particularly favourable interest rate. When it comes to comparing the effective interest rate, the evaluation of the results is more complex.

Let us advise you and find out how you can use some tried and tested strategies to ensure the most favourable loan conditions for your construction financing. A good credit rating in combination with an optimised repayment concept has a positive effect on reducing the interest burden for real estate financing.

Use the online loan calculator to get an initial overview and see the basis of your financing options. Then check in detail with which repayment you will receive the best construction interest rates based on your own budget specifications. We will be happy to recommend different financing models based on the criteria that are important in your construction loan. With our comparison at Lukinski, we lay the foundation for your home and show you that you can finance according to your own requirements at the best construction interest rates.

Finance favourably, compare comprehensively

The total expenditure when buying a house or financing an apartment rises and falls with the construction interest rates. A construction interest comparison is free of charge and offers you an overview of the difference between the net construction loan amount and the conditions including construction interest in just a few minutes. At the current time, construction and mortgage rates are at an all-time low.

For you as a prospective buyer and financier, this results in a cost advantage that should not be underestimated. Pay attention to the interest rate comparison and note the key data of the offers that are interesting and relevant for you. We will be happy to provide you with condition offers for a comparison, in which you can compare different financing models, different terms and financing partners.

Financing models and building interest offers

Without a comparison, the construction financing section is very confusing. There are numerous options, financing models and different construction interest offers available based on your credit rating and the amount of equity invested.

Only if you find the best model for you with the lowest construction interest rates, you finance professionally and at the best price. By changing the fixed interest rate, you can have a concrete influence on the construction financing. Simply check in the online comparison how much money you can save by changing your actual repayment plan.

Give money away?

Without a construction interest rate comparison, you are giving away valuable potential and can almost certainly assume that your construction loan will be unnecessarily too expensive.

With a long-term commitment you make with a construction loan, the smallest compromises can put high additional costs of a few thousand euros on your agenda. This applies to all construction loans, regardless of whether you opt for an annuity loan, forward financing or a combination of a real estate loan and KfW construction financing. In general, you should know that not every construction loan is equally suitable for you.

Conditions of different lenders vary

The conditions of different lenders vary, which automatically makes a comparison the most important basis for your construction loan. You can use the online comparison free of charge and get a first impression of the conditions at which you can build your own home or finance an apartment, for example.

Then we recommend you to entrust a detailed comparison of construction interest and to determine your personal conditions.

Based on our many years of experience, we strongly advise potential homeowners not to consider a construction loan to be cheap without first making a comparison. Only if you get a broad overview and know your individual options in their entirety, you will really make the best decision and finance so favorably that your dream of home ownership no longer has to wait. Contact us for your construction interest rate comparison and benefit from Lukinski as a partner you can count on.

Interest rate forecast construction financing at a glance

Influence the development of the construction interest rate yourself! By choosing the right repayment period, calculating your equity capital and choosing the best financing option for you, you can finance your construction at any time at an unbeatably low interest rate.

Advice for construction financing and new construction

Good real estate agents and banks advise you on the construction financing chart and offer you core competence in interest rate forecasting, so that you can make an optimal decision and keep your construction financing costs favorable. They will be happy to explain to you in detail how you can influence the development of the building interest rate simply by changing the repayment rate and the term, through more equity capital or a tailor-made financing concept. A good advisor will get you into your own home or condominium and ensure that you invest at exactly the right time and create a foundation for your future through financing advantages.