Construction costs are rising rapidly, as are interest on loans. For many people wanting to build, it is just right that the state bank KfW is once again accepting applications for funding. However, the funds are limited – and are likely to be gone quickly. An overview.
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Stephen Radomsky
The dream of owning your own house has come true in the past. Construction companies and craftsmen are hard to come by right now, the prices for materials such as wood, steel and insulating materials are skyrocketing and interest rates on construction financing are also rising rapidly. If there was a loan with a ten-year fixed interest rate at the beginning of the year for one percent interest, it is now exceeded the two percent mark. And Interhyp, Germany’s largest mortgage lending broker, expects costs to rise further, to 2.5 to 3 percent by the end of the year. So anyone who wants to build or buy will be happy to accept whatever funding is available.