Hardly to believe, but true: In Denmark negative interest in the Baufinanzieurng is required. This means that the borrower repays less credit than he takes out. Some newspaper speculate already whether these negative interest rates in the construction financing are offered soon also in Germany. In the current bank advertisements one finds already interest offers starting from 0.30 per cent. t is time to get to the bottom of these reports. Can it really be that you have to pay back less money than you get borrowed. These negative interest offers are already found in consumer loans in Germany. Breaks out now the interest panic? Experts see this calmly.
Negative interest rates in construction financing – already a fact in Denmark
The Danish Jyske Bank is currently offering selected customers seven- and ten-year fixed-rate loans, with which these customers earn money. However, a closer look reveals that these minus interest rate offers are purely promotional or. Representing loss-leader offers. They managed it nevertheless to provide for accordingly large headlines. Dsr trick: The indicated interest rate is actually to be had. But since this Danish provider charges fees, the borrower actually pays back more. And the bank makes money this way. It can be compared with the practice of low-cost airlines: They offer unbelievably cheap airfare from Munich to London for less than 20 euros. But firstly, these offers are extremely limited and secondly, they are earned through additional services – z. B. Surcharge for the travel suitcase, seat reservation etc. Lenders have now also discovered this principle for themselves.
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. In our view, this definitely does not appear to be a harbinger of a financing bubble. Also, these offers would further drive up real estate prices. Denmark has – comparable with Germany – has taken measures against too risky credit granting. In addition, banks must check that if interest rates rise in the future, refinancing remains feasible with the borrower's disposable income.
This trend toward negative interest rates in construction financing rather shows that banks are having to come up with more and more ideas to attract customers. This trend is also evident in Germany. This strengthens the position of the customer in any case. You can now negotiate well and by obtaining several construction financing concepts in the end to get the best possible interest rate for you out. Whereby for the best construction financing not only the interest rate counts. Also flexibility, time of the disbursement as well as repayment agreements play a particularly important role just like promotion possibilities and loan running times.
The most favorable construction financing? Get advice before you decide.
Regardless of whether you are offered negative interest rates or not. There has never been a construction financing so cheap as currently. Because of this, however, you should not be tempted and sign up for the first offer from your local bank. It can always be better. Therefore, our advice: bevot you decide several offers from various bank providers as well as from reputable and top-rated construction financing intermediaries such as accedo AG to obtain. Important for comparison: always inquire with the same key points such as equity amount, loan amount, term and amortization. Consider unscheduled repayment options and rate adjustments during the term as well, and also check the interest-free payout period. Here's how to make the offers comparable.
If you have accedo AG among your choice of providers, you can access daily updated and direct offers from ca. 450 German banks access. This saves a lot of time and research. In any case, take your time and make meticulous comparisons. Only in this way can you be sure of receiving the best mortgage offer tailored to your situation. This is especially true in times of low interest rates.
In Denmark, negative interest rates are offered in construction financing. What's behind it and is it also conceivable for Germany?