real estate buyers and builders have used the low interest rates in the past few years, to make the borrowing safer. The average interest rate bond in 2010, was 11.6 years, there were 2020 13.7 years, shows a study by the ING belonging to the real estate Bank Interhyp. During the fixed interest rate real estate buyers are protected from interest rate increases. In addition, borrowers from the General interest rate decline benefited During 2010 for ten-year loans to around 4 per cent, interest per annum was due, it now usually less than 1 percent.
According to the on Wednesday published analysis, for the more than 600,000 financing between 2010 and the end of June 2020 were evaluated, loans are repaid more quickly, even under the pressure of higher real estate prices. The initial repayment of mortgage loans has increased from 2.6 percent in 2010 to 3.3 percent in 2020. "We remember the advice our clients that real estate buyers and builders on safety in the financing value," said Mirjam Mohr, Head of the Department for the private client business in Interhyp. Often get asked about the possibilities of repayment rate change, to loss of income or a higher income in the Rates up or down to adjust. "Flexibility has become more important," she said with a view on consequences of the pandemic.
"In the corona crisis, we have seen a high demand for real estate and Finance, even if there were fluctuations in the months of," says the Chairman of the Board Jörg Utecht. "In March and April, shortly after the all-time low of mortgage rates and the beginning of the corona crisis, have determined many people to purchase and financing."
The buyer brought more equity in financing. The average amount of builders and buyers in 2010 at 83,000 Euro, was it were, in 2019 roughly 101,000 Euro and in the first half of 111.000 Euro, show the Interhyp-data. This is also an indication that owner-occupiers were in the Corona-crisis on security.Updated Date: 12 August 2020, 05:19