Official Bundesbank data, May 2026
Current Mortgage Rates in Germany
In May 2026, new housing loans in Germany carried an average effective interest rate of 3.98% with a rate fixation of over 10 years, and 3.74% for fixations of 5 to 10 years. These are averages across actual new loan contracts, published monthly by the Deutsche Bundesbank.
Average rates by fixation period, May 2026
Floating rate or up to 1 year
4.34%
effective, % p.a., provisional
Over 1 and up to 5 years
3.92%
effective, % p.a., provisional
Over 5 and up to 10 years
3.74%
effective, % p.a., provisional
Over 10 years
3.98%
effective, % p.a., provisional
Source: Deutsche Bundesbank, MFI interest rate statistics, effective interest rates on new housing loans to households.
How mortgage rates developed over the last 13 months
| Month | Floating rate or up to 1 year | Over 1 and up to 5 years | Over 5 and up to 10 years | Over 10 years |
|---|---|---|---|---|
| May 2026 | 4.34%* | 3.92%* | 3.74%* | 3.98%* |
| April 2026 | 4.18% | 3.78% | 3.66% | 3.91% |
| March 2026 | 4.07% | 3.63% | 3.60% | 3.74% |
| February 2026 | 4.17% | 3.63% | 3.61% | 3.82% |
| January 2026 | 4.16% | 3.60% | 3.58% | 3.84% |
| December 2025 | 4.12% | 3.61% | 3.58% | 3.73% |
| November 2025 | 4.17% | 3.56% | 3.56% | 3.72% |
| October 2025 | 4.16% | 3.60% | 3.58% | 3.71% |
| September 2025 | 4.16% | 3.58% | 3.60% | 3.79% |
| August 2025 | 4.18% | 3.55% | 3.56% | 3.73% |
| July 2025 | 4.12% | 3.50% | 3.55% | 3.69% |
| June 2025 | 4.24% | 3.52% | 3.52% | 3.68% |
| May 2025 | 4.33% | 3.52% | 3.51% | 3.63% |
* provisional value
What these figures are, and what they are not
The rates above come from the Bundesbank's MFI interest rate statistics: every month, a representative sample of German banks reports the effective interest rates of the housing loans they actually concluded with households. Effective means the figure includes the interest cost of the loan as agreed, not a teaser or advertised rate.
Because they are averages of real contracts, these figures are a reliable benchmark, but no individual offer will match them exactly. Your loan-to-value ratio (Beleihungsauslauf, the loan amount relative to the property value), equity, income, fixation choice, and the property itself all move an individual offer above or below the average.
The data is published with a lag of roughly two months, and the newest month is provisional until the next publication confirms it. The data month is always stated on this page.
What half a percentage point means for a rental property
Rates matter more for investors than the headline suggests, because financing is usually the largest single cost of a rental property. On a loan of €360,000 (80% of a €450,000 purchase), a difference of 0.5 percentage points changes the interest cost by roughly €150/month in the first year. That difference flows directly into monthly cash flow, and because loan interest on a rented property is deductible from rental income, the after-tax effect depends on your marginal tax rate too.
These figures are illustrative and based on general assumptions. They do not constitute financial advice. Individual results depend on personal circumstances, tax situation, and market conditions. Consult a licensed tax advisor (Steuerberater) for advice specific to your situation.
See what current rates mean for a property you have in mind
Financemate is not a lender or mortgage broker. Financing for properties on our platform is arranged with our financing partner. What we can do is help you understand the numbers first.
Frequently asked questions
What are current mortgage rates in Germany?
As of May 2026, the average effective interest rate on new housing loans to households in Germany was 3.98% for loans with a rate fixation of over 10 years and 3.74% for fixations of 5 to 10 years, according to Deutsche Bundesbank MFI interest rate statistics. These are averages across actual new loan contracts, not advertised offers.
Why is my offered rate different from these averages?
Individual offers depend on the loan-to-value ratio (Beleihungsauslauf), the fixation period, your equity, income, the property itself, and the lender's pricing. Offers around 0.3 to 0.5 percentage points above or below the average are common. The averages here are most useful as a benchmark for whether an offer is in a normal range.
How current is this data and how often does it update?
The Bundesbank publishes these figures monthly with a lag of roughly two months, and the newest month is provisional until confirmed. This page refreshes automatically from the official statistics, and the data month is always shown, so you can see exactly which period the figures describe.
What rate fixation period do buyers in Germany typically choose?
Long fixation periods are the norm in Germany. Fixations of 10 years or more are the most common choice for both owner-occupiers and investors, because they lock the rate for a large part of the loan term. Shorter fixations usually carry lower rates but leave you exposed to refinancing risk when the fixed period ends. After 10 years, German law (§489 BGB) lets borrowers repay or refinance any loan with 6 months notice, regardless of the agreed fixation.
Are mortgage rates different for rental property investments?
Banks price rental property loans with the same mechanics, though the assessment includes expected rental income and sometimes slightly different loan-to-value limits. One difference that matters for the overall picture: interest on a loan for a rented property is deductible from rental income for tax purposes, which owner-occupied loans are not.
Can internationals get a mortgage in Germany?
Yes. Residency status, income situation, and equity affect what banks offer, and non-EU citizens with temporary residence permits may see stricter loan-to-value limits. The process is well established for international buyers.