German homeowners are facing comparatively higher mortgage interest rates than their counterparts in many other European nations, according to recent data
An analysis by comparison portal Verivox, reported by “Der Spiegel” indicates that average building society interest rates in Germany stood at 357 percent in the first quarter of 2025 This represents a 25 percent increase compared to rates in Spain, where purchasers are currently experiencing rates of 285 percent This positions Germany at ninth place out of 17 European countries surveyed Property financing is notably more affordable in nations such as Portugal, France and Italy
The relatively high mortgage rates in Germany are surprising given the country’s strong creditworthiness, both in terms of state solvency and the overall economic outlook as assessed by international rating agencies Oliver Maier, head of banking at Verivox, explains that, similar to government bonds, Pfandbrief yields – and therefore the refinancing costs for banks – are typically lower in countries with strong credit ratings German banks, therefore, have access to comparatively inexpensive refinancing options Despite this, consumers are still being charged elevated interest rates The situation is reversed in countries like Spain, where, despite weaker creditworthiness and higher bank refinancing costs, property buyers benefit from lower rates