Interhyp trend barometer: stagnating interest rates, increased material costs

  • In view of the ongoing loose monetary policy of the central banks, the financing costs for those interested in real estate will nevertheless remain very manageable in a long-term comparison. However, more attention should be paid to the sometimes extremely high material costs during construction. These could both drive up new building prices and change financing behavior.

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  • At Interhyp Austria we currently see the best interest rates for variable loans still at 0,27 percent nominal and 0,64 percent effective

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  • We recommend comparing loans in terms of the amortization grace period. In this way, interest costs can be avoided or minimized, which arise from a later construction completion and a delayed credit call.

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  • When approving the loan, the first banks are already checking whether borrowers can cope with possible refinancing.

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Vienna (OTS) - Successful vaccinations, loosening of lockdowns and catch-up effects caused interest rates on real estate loans in Austria to rise again minimally in May. In the Interhyp trend barometer, a monthly survey of interest rate experts from Austrian and German credit institutions, the experts forecast constant interest rates in the short term and further upward potential in the long term. Mirjam Mohr, board member at Interhyp AG: “In view of the ongoing loose monetary policy of the central banks, the financing costs for those interested in real estate will nevertheless remain very manageable in a long-term comparison. However, more attention should be paid to the sometimes extremely high material costs during construction. These could both drive up new building prices and change financing behavior. "

"At Interhyp Austria we currently see the best interest rates for variable loans still at 0,27 percent nominal and 0,64 percent effective", says Andreas Luschnig. For ten-year fixed interest rates, the best interest rates have risen marginally and are currently 0,85 percent nominal and 1,23 percent effective - with a loan amount of 300.000 euros and a term of 30 years. On average, the interest rates are 1,22 percent nominal and 1,6 percent effective. With a view to the interest rate situation, Luschnig advises first-time buyers to use long-term, fixed interest rates. In addition, the significantly increased raw material costs and bottlenecks in the wake of the corona pandemic should be considered. The price of wood has risen by 400 percent within a year, insulation materials such as Styrofoam rose by 50 percent in April and reinforcing steel by around 30 percent over the year. “We recommend comparing loans in terms of the amortization start-up time. In this way, interest costs can be avoided or minimized, which result from a later construction completion and a delayed credit call. " In addition, borrowers should check whether they can lift a loan by self-construction that is theoretically 20 percent above the originally planned loan amount. Luschnig: "When approving the loan, the first banks are already checking whether borrowers can cope with a possible refinancing."

You can find more information on interest rate developments in the Interhyp interest rate charts at https://www.interhyp.de/ratgeber/was-muss-ich-wissen/zinsen/zins-charts.html

You can find the entire press release with detailed information here..

Inquiries & contact:

Dipl.-Journ. Caroline Neider
Press spokeswoman Austria
Phone + 43-1-2530710-151
Mobile: + 49-175 4221774-
Email: caroline.neider@interhyp.at
www.interhyp.at