How real estate prospects can compensate for the high interest rates

Compensate for the high loan interest with a price discount?

According to Check24, a negotiating margin of up to 20 percent is realistic.

(Photo: Imago/Westend61)

Dusseldorf Homebuyers who are looking for the cheapest real estate loan can currently hardly find an offer below the mark of 3.7 percent interest with a fixed interest rate of ten years. This is shown by a look at the FMH financial advice database. In the same month of the previous year, the average building interest was still around 2.6 percent, in January 2022 it was only one percent.

The high rates are clearly noticeable on the real estate market: the number of newly granted building loans has fallen rapidly in recent months. According to the management consultancy Barkow Consulting, last March was even the weakest month since the 2008 financial crisis.

For people who want to buy a property now, the high interest rates that banks are currently giving on their home loans are an obstacle. The impending monthly burden of the repayment costs incurred unsettles interested parties who are dependent on outside capital.

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