57 percent in the first quarter of 2025 This represents a 25 percent increase compared to rates in Spain, where buyers are currently managing with 285 percent Germany currently ranks ninth out of 17 European countries surveyed Property financing is demonstrably more affordable in nations like Portugal, France and Italy
The comparatively high rates in Germany are notable, given the country’s strong solvency ratings assigned by international credit rating agencies, both for the state and its economy Oliver Maier, Banking Chief at Verivox, explains that, “Similar to government bonds, Pfandbrief yields – and therefore the refinancing costs for banks – are particularly low in countries with strong creditworthiness” This suggests German banks possess the capacity to secure inexpensive refinancing, yet consumers still encounter elevated interest rates The situation contrasts markedly with countries like Spain, where, despite weaker credit ratings and higher bank refinancing costs, property buyers benefit from lower mortgage rates
