Dusseldorf Living in your own four walls – this dream is currently threatening to burst for many people. Because in mid-October, building interest rose to around four percent – and thus to the highest level since 2011.
The rising costs are causing the demand for mortgage lending to drop significantly. The new business of German banks with real estate loans to private households and the self-employed collapsed in September by 28 percent compared to the same month last year, as new data from the consulting firm Barkow Consulting show.
If you still don’t want to give up the dream of owning your own property, you should consider a few things before taking out a building loan. In the new episode of Handelsblatt Today, Markus Hinterberger, chief reporter in the Handelsblatt investment team, talks about various mistakes that borrowers should avoid when financing mortgages.
An example: “When it comes to construction financing, you should make sure that you can flexibly adjust the repayment rate up or down,” says Hinterberger. That could make more sense than a special repayment. Because there are banks that charge more interest if the customer wants a special repayment, Hinterberger points out.
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Union blocks citizens’ income in the Bundesrat
Also: The citizens’ allowance planned by the traffic light government has been rejected in the Bundesrat. The federal states in which the Union co-governs abstained in the decisive vote on Monday. Bavaria voted against. The proposal did not achieve the necessary majority of 35 votes in the special session of the Federal Council. Now the Mediation Committee has to deal with the proposed legislation. Capital correspondent Frank Specht classifies the situation.
More: Seven mistakes borrowers should avoid
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