Have you been considering buying a property in Germany but been put off by the high mortgage interest rates? Peter Kleinwächter from Your German Mortgage looks at key market trends to consider whether interest rates are likely to go down next year, making buying a house more affordable. Many young families are under considerable pressure when it comes to housing.
Rising interest rates are putting would-be home purchasers in a tight position. But with the market stabilising somewhat, and rental prices still sky-high, it might now be a case of simply biting the bullet and securing a mortgage. Peter Kleinwӓchter from Your German Mortgage explains what’s behind the recent hike in mortgage interest rates, and explores what options are open to buyers.
What’s going on with Germany’s housing market and can tourists get the €49 ticket? (Spotify Podcast)
In the latest episode, host Rachel Loxton is joined by journalists Imogen Goodman and Aaron Burnett, as well as experienced mortgage broker Peter Kleinwächter from MLP Berlin and culture and history writer Mike Stuchbery. Germany’s €49 monthly transport ticket will start on May 1st.
Anyone who is currently looking for a property and needs the corresponding financing will have been sobered to discover that interest rates have almost tripled compared to January 2022. A large proportion of prospective buyers therefore hardly have the chance to buy a flat or a house any more; the monthly burden for interest and repayment is simply too high.
Construction interest rates are still low, and this is a welcome development not only to potential buyers but also to owners – and not just when the term of their loan is about to end. Well-chosen follow-on financing means financial security. When it comes to arranging for their follow-on financing, the willingness of property owners is relatively high – not every financial topic is so self-evident for consumers.