Compare loan offers
Put up to five offers side by side: interest rate, fixed period, fees – and what each costs if rates rise later.
€302,413 interest and fees
Bank A, 10 years is the cheapest if rates are 4.75% after the fixed period: €302,413 interest and fees until the loan is repaid, paying €2,498.70 a month with every offer. At 5.8% Bank B, 15 years is cheaper. At 6.8% Bank C, 20 years is cheaper.
The runner-up, Bank B, 15 years, costs €1,336 more – so close that the difference is within the guesswork. All offers are compared at the same monthly payment – the highest one among them – because paying more each month always means less interest; banks usually let you choose a higher repayment rate. Offers with a short fixed period look cheap but leave more debt to refinance at an unknown rate. The table below shows what each offer costs if rates end up higher or lower than 4.75%.
Side by side Side by side Each column is one offer. Only the bottom row – total interest and fees until the loan is repaid, at the same monthly payment for all offers – compares them fairly, because it includes the part after the fixed period; the cheapest is shown in green. A lower monthly payment or effective rate is not better in itself: offers with a short fixed period always look cheaper there.
| Bank A, 10 years | Bank B, 15 years | Bank C, 20 years |
|---|---|---|
| Monthly payment Monthly payment German: Rate / Monatsrate What you pay the bank every month: interest plus repayment. With an annuity loan it stays the same for the whole fixed-rate period. More about this term | ||
| €2,309.89 | €2,398.27 | €2,498.70 |
| Fixed for Fixed-rate period German: Zinsbindung How long the interest rate is guaranteed, typically 5–20 years. After it ends, you have to refinance the remaining debt at whatever rates apply then. By law you can cancel any loan 10 years after payout with six months' notice, without a penalty. More about this term | ||
| 10 years | 15 years | 20 years |
| Effective rate Effective annual rate (APR) German: Effektivzins Only comparable between offers fixed for the same time: a shorter fixed period almost always has the lower rate. The true yearly cost of the loan: it includes monthly compounding and fees. German banks must state it in every offer, which makes it the fairest number for comparing loans. More about this term | ||
| 3.82% | 4.04% | 4.30% |
| Interest in fixed period Interest in fixed period The interest you pay while the rate is guaranteed. Only comparable between offers with the same fixed period. | ||
| €160,427 | €234,454 | €297,608 |
| Owed when it ends Remaining debt German: Restschuld What you still owe at a given time – most importantly at the end of the fixed-rate period, because that amount has to be refinanced at the rates of that time. More about this term | ||
| €365,305 | €284,831 | €179,985 |
| Debt-free, same payment Debt-free, same payment When the loan would be fully repaid if you paid the same monthly amount with every offer (the highest of their payments), assuming the follow-up rate you entered. | ||
| Dec 2052 | Jan 2053 | Nov 2053 |
| Total interest and fees, same payment Total interest and fees, same payment Everything you pay on top of the loan itself until it is repaid, with every offer paying the same monthly amount – the fairest single number to compare offers. | ||
| €302,413 | €303,749 | €329,920 |
Remaining debt Remaining debt German: Restschuld Each line shows how much an offer still owes at the end of each year. Where a line is high when its fixed period ends, a lot of debt has to be refinanced at an unknown rate. What you still owe at a given time – most importantly at the end of the fixed-rate period, because that amount has to be refinanced at the rates of that time. More about this term
Longer fixed periods cost more interest now but leave less to refinance
What if rates change? Follow-up financing German: Anschlussfinanzierung Each group of bars is one possible interest rate after the fixed period. Lower bars are cheaper. An offer that stays cheap even at high rates is the safer choice. The new loan (or new rate with the same bank) for the remaining debt once the fixed-rate period ends. Nobody knows future rates, so plan with a pessimistic value. A forward loan (Forward-Darlehen) can lock in a rate up to about five years in advance, for a surcharge. More about this term
Total interest and fees for a follow-up rate other than 4.75%
How this is calculated
Offers with different fixed-rate periods cannot be compared by their payment or effective rate – a short fixed period almost always has the lower rate, but leaves more debt to refinance at an unknown rate.
So the calculator runs every offer until the loan is repaid, with the same assumed follow-up rate and the same monthly payment for all (the highest among them), and compares the total interest and fees. It also shows how the ranking changes at other follow-up rates.
Questions and answers
How do I compare German mortgage offers?
By the total cost until the loan is repaid, at the same monthly payment and the same assumed follow-up rate – not by the payment or the effective rate alone.
Is a longer fixed-rate period worth it?
It usually costs a little more interest today, but leaves less debt to refinance at an unknown rate later. The comparison shows from which follow-up rate it pays off.
Why is the effective rate alone not enough?
It only covers the fixed-rate period. Offers with fixed periods of different length therefore describe different stretches of time.