For the real estate loan there is no interest, but from the financial institution a small discount: in real estate financing, the interest rates are moving towards zero percent. The real estate world would be fundamentally changed by the negative interest loans.
There is no end of falling interest rates in sight: for the purchase of a house or an apartment, more and more favorable real estate loans are offered. There are already the first thought games, which concerns the minus interest with the construction financing – in particular since the punitive interest rates for the deposits of the financial institutions were tightened. This increases the pressure on banks. What does this mean for consumers?
What exactly would construction financing mean that interest rates are negative?
For example, when buyers of houses or apartments take out a loan with a minus interest rate, they receive a discount from the credit institution: instead of paying interest on their loan, they would not even have to repay the loan they took out in full: if the loan amount is 200.000 euros, that would be only 199 in that case.000 euros. This would make interest on redemptions history.
Are in germany already negative interest construction financing available?
The experts believe that this is not yet the case. However, the interest rate on loans with a ten-year commitment period is below 0.5 percent for customers with a good credit rating, according to interhyp. The conditions of at least 400 banks compared the mediator of private real estate loans. Mirjam mohr, the interhyp-vorstandi, says that borrowers are experiencing a development in these weeks, which has not yet been there. Those with a good credit rating can already receive 0.4 percent per year.
The independent FMH-finanzberatung also claims that real estate loans are more favorable than ever before. For a loan with a contract period of ten years, there was recently an average interest rate of 0.69 percent per year, while three weeks ago it was 0.71 percent.
Is it coming soon to the introduction of minus interest rates for mortgages?
The credit institutes adjust themselves already to it, if it according to financial scene.De, an industry portal, goes. However the large banks hold themselves so far covered. There are currently no plans to introduce minus interest rates for real estate loans, deutsche bank explained. This is currently not conceivable, said commerzbank.
Mohr of interhyp believes that negative interest rates on real estate loans will probably be introduced here only in individual cases. In the positive area it came already with several financial institutions to minimum interest rates, while in neighboring denmark, however, there are already negative interest rates in construction financing.
Max autumn of the enterprise FMH finanzberatung sees it quite similarly. It means that it is possible and the interest with the real estate credit falls. However, for most, the likelihood of negative construction interest rates is minimal. Top offers with the conditions ten years with approximately 0,3 per cent debit interest would concern consumers with good credit standing and sufficient own capital funds.
How do credit institutions profit from possible minus interest rates on real estate loans??
For financial institutions negative construction interest rates could be the lesser evil. Because if they hoard money overnight at the european central bank, they will have to pay increased penalty interest rates. Instead of the previous 0.4 percent, 0.5 percent will now apply. Herbst thinks that the pressure is increasing. Credit institutions want to part with their money, as the european central bank costs them too much. The solution would therefore be large real estate loans, which financial institutions could grant almost risk-free even at low interest rates.
What do extreme low interest rates mean for the real estate run?
By it citizens can be encouraged to take up for the acquisition of a dwelling or a house more money and drive the run further: the lower the interest rate, the lower the debt burden. Niels nauhauser, a financial expert at the verbraucherzentrale baden-wurttemberg, says that two spouses who ten years ago had a monthly installment of 1.000 euro for financing left, today with the same amount a much higher loan can stemmen.
Residential real estate loans are already swollen in the real estate run: in response to the green parliamentary group's question, the ministry of finance said that within ten years, debt increased by about 25 percent among german citizens. Consequently, in 2018, about 995 billion euros were borrowed by private households for construction financing.
Is to be feared that the real estates become now nevertheless still more expensive?
No one knows whether the prices of houses or apartments will continue to rise, no matter what happens in construction financing with possible minus interest rates. Favorable real estate credits drive admittedly conditionally large investors into objects. Due to the low interest rates they find almost no profitable investments. You therefore continue to rely on rising real estate prices. The bank federation VoB belongs to those, which warn against real estate bubbles. Even through politics, more regulation could put more strain on the housing market.
What should consumers do?
Consumer advocate nauhauser warns prospective real estate buyers not to buy, even if interest rates on construction financing are very low. Because the low interest rates would face far increased prices. If real estate loans with minus interest are introduced, then probably only in the decimal place range. Little would be given to one. And consumers would have to repay the loan almost in full, despite everything.
No new action pressure sees also autumn of the company FMH finanzberatung. It means that one should not wait with the real estate purchase, until the interest rates sink possibly still more. Often, he says, he has to close the deal quickly before the apartment or house is otherwise spoken for. People with follow-on financing, on the other hand, have the option to relax and hope that even better terms are offered.
What is the opinion of the financial supervisors?
The federal bank shows itself calmly. It considers negative construction interest rates possible. Joachim wurmeling from the board of directors said that because of the minus interest rates, it becomes more attractive for customers to take out a loan. Therefore, it is all the more important not to relax the standards in the lending by the banks. On a broad front, this is not yet apparent.