Which bank has the best interest rate?

Interest rate comparison - Which bank has the cheapest interest rate?

Finding the right bank for construction financing is a major challenge for many people. Most of the time, numerous appointments are made with different credit institutions, which take up a lot of nerves and time. This is often just about the one crucial question:

"Which bank has the most favorable interest rate?"

However, this question is not so easy to answer across the board.

Interest rate – the bank comparison

In the following example of a sample customer, which we have created on our calculation platform for real estate loans, we would like to show how an interest rate difference can look at different banks. The focus here is on the so-called fixed interest rate. Fixed interest rate means the term that the bank grants the customer with regard to a certain interest rate. Long fixed-interest periods usually result in an increase in the interest rate.

Key data: the sample customer in our example is married and has an average household income. The purchase price of the house is 300.000 €. Thereby incidental costs in the amount of 21.000 € an. The equity capital employed amounts to 50.000 €. Accordingly, the loan amount to be taken out is 271.000 €.

Fixed interest rate 15 years

Interest rate fixed for 15 years Comparison

Fixed interest rate for 20 years

Fixed interest rate 20 years comparison

The graphs represent a simplified overview of our credit platform. In our example, we have selected the first three banks with the most favorable interest rates. The left column of the illustrations shows the target interest rate offered. In the middle, the associated credit institutions are shown. The right column illustrates the fixed interest rate in years. The first graph compares the 15-year and the second the 20-year interest rate lock-in.

It becomes clear that the order of the most favorable offerer already changes with the input of different interest commitments. (date from october 2019)

Which bank has the most favorable interest rate?

If the deutsche bank is the most favorable option for a 15-year fixed-interest period, the commerzbank appears as the bank with the most favorable interest rate conditions when the 20-year fixed-interest period is selected.

With this simple example, it's easy to see the impact of changing just one parameter for the financing project.

This makes it impossible to determine in advance exactly which bank offers the "best" interest rate terms for the customer. As you can imagine, there are many variations and preferences among customers, which can lead to different interest rates among banks.

The following are examples of parameters that can also affect the interest rate:

– the valuation of the property- the amount of equity invested- the option of special repayment- the length of the fixed interest rate- the amount of the repayment installment

Is it worth comparing interest rates at different banks??

In the chart above, the interest rates do not differ dramatically at first glance. For this reason, we sometimes come across opinions such as:

This opinion can quickly become very expensive, because 0.1% difference in interest rates can make a big difference!

Another example: a customer wants a loan of 300.000 € for his real estate financing. Due to the favorable interest rate level, he opts for a long-term interest rate security of 25 years. Credit institution A submits an offer with a 25-year fixed interest rate and an interest rate of 2.45 percent. Credit institution B, on the other hand, charges 2.55% for a 25-year fixed interest rate. The buyer pays a monthly financing installment with both credit institutions of 1.140 €.

Financing bank A with 2.45% financing bank B with 2.55% remaining debt after 25 years: 81.967,30 € remaining debt after 25 years: 89.430,98 €.

Difference: 7.463,68 €

This simple example already shows what a basically minimal difference in interest rates causes in terms of long-term interest costs. Interest rate differences of far more than 0.1% often occur with long fixed-interest periods, and the financing sums are also frequently higher than 400.000 €.

Bottom line: it pays to compare interest rates at different banks. Which bank can offer "the most favorable interest rate" always depends on the individual case and requires expert advice beforehand.

What added value can we offer?

The ways to the different banks are laborious and cost a lot of time.
This work we do for you!
As independent financial advisors, we are not tied to any one bank, and therefore work with a large number of regional and national banks, insurance companies and building societies in the area of construction financing.

With our years of experience in construction financing, we can conveniently match you with the most attractive interest rates and financing options, saving you the work of getting quotes from different banks yourself.

  1. Favorable loan interest rates (often more favorable than your own house bank)
  2. Flexible scheduling (even after normal bank opening hours)
  3. Us, as a direct contact on site in bad essen
  4. Wide range of financing options

What are the costs for you and how do we get paid?

We advise you free of charge and without obligation, to what extent a financing is possible and reasonable for you. So together we can answer the question for you: "which bank has the most favorable interest rate??".
If we are able to arrange financing for you, you will not pay any additional consulting fee.
We receive this directly from the respective bank/insurance/building society and it is not charged separately.

If no financing comes about after our consultation, you also do not pay any consulting fee! So you take absolutely no risk and can get advice without obligation.

If we have aroused your interest and you are interested in a free and independent consultation, please contact us. You can do this by filling in the following form.
Feel free to ask any questions you may have in advance or to ask for feedback about a date.