Negative interest rates in construction financing

Hard to believe, but true: in denmark, negative interest rates are required in construction finance. That is, the borrower pays back less credit than he takes in. Some newspapers are already speculating whether these negative interest rates in construction financing will soon also be offered in germany. In the current bank advertisements one finds already interest offers starting from 0.30 per cent. S is time to get to the bottom of these messages. Can it really be that you have to pay back less money than you borrowed?. These negative interest rate offers can already be found in consumer loans in germany. Is the interest rate panic breaking out now? Experts take a relaxed view.

Negative interest rates in construction financing – already a fact in denmark

The danish jyske bank currently offers seven- and ten-year fixed-rate loans to selected customers, with which these customers earn money. But if you take a closer look, you will see that these minus interest rate offers are purely advertising or. Present bait and switch offers. After all, they have managed to make the headlines in a big way. Dsr trick: the reported interest rate is actually up for grabs. But since there are fees with this danish provider, the borrower actually pays back more. And the bank earns money so. It is comparable with the practice of cheap airline: they offer unbelievable cheap airfare from munich to london for znter 20 euro. But firstly, these offers are extremely limited and secondly, you earn money through additional performance – z. B. Surcharge for the travel suitcase, seat reservation, etc. This principle has now also been discovered by lenders.

Cheap or negative interest rates in construction financing – only under narrow conditions

For example, the danish bank only offers this negative interest offer to qualified homeowners as a supplementary loan – z. B. For additional construction work or for a car loan secured by real estate. From our point of view, this definitely does not appear to be a harbinger of a financing bubble. These offers would also drive up property prices further. Denmark has – comparable to germany – taken measures against too risky lending. In addition, banks need to check that if interest rates rise in the future, refinancing will remain feasible with the borrower's disposable income.

This trend toward negative interest rates in construction financing shows that banks are having to come up with more and more ideas to attract customers. This tendency can also be seen in germany. In any case, this strengthens the position of the customer. You can now negotiate well and obtain the best possible interest rate for yourself by obtaining several construction financing concepts. Whereby for the best construction financing it is not only the interest rate that counts. Flexibility, timing of payment and repayment agreements also play a particularly important role, as do funding options and loan terms.

The cheapest construction financing? Get advice before you decide.

No matter whether they are offered negative interest rates or not. Construction financing has never been as affordable as it is today. But that's why you shouldn't be tempted to sign the first offer from your house bank. It is still possible to do better. Therefore our advice: before you decide, get several offers from various bank providers as well as from reputable and top-rated construction financing brokers such as accedo AG. Important for the comparison: always request the same key points such as equity amount, loan amount, term and repayment. Special repayment options and rate adjustments during the term also consider and also check the interest-free payout period. How to make the offers comparable.

If you have accedo AG among your choice of providers, you can access the offers of ca. 450 german banks access. This saves a lot of time and research. In any case, take your time and compare meticulously. Only in this way can you be sure of receiving the best construction financing offer tailored to your situation. This is also especially true in low interest rate periods.

In denmark, negative interest rates are offered in construction financing. What is behind this and is it also conceivable for germany??