When a forward loan pays off depends largely on the development of mortgage interest rates. If an increase in interest rates can be expected in the near future, the forward loan should not be waited too long. On the other hand, if interest rates rise only to a very small extent, one has to calculate: When will the interest premium payable be amortized by the rising interest rates?
Basically you can get a forward loan small up to 5.5 years before your current loan ends
It is often recommended from a point in time of 36 months before the end of your fixed interest period, because then the development of the interest rate can already be determined more precisely. If rising interest rates are expected, the conclusion of a forward loan can also be worthwhile earlier. In this way you can secure the currently low construction interest rates and at the same time receive interest security.
When deciding on a forward loan, the interest surcharge to be paid should be taken into account. This mainly depends on the length of the waiting period between the conclusion of the loan and the end of the current rate fixation. One can start from the rule of thumb: the longer the waiting time, the higher the interest premium on the forward loan. Our forward loan calculator shows you what debit interest, including interest, can be expected.
Length of the fixed interest rate
Another point that can influence the amount of the interest premium is the length of the fixed interest rate
The following applies: the longer the fixed interest rate for the new loan is, the more expensive the interest rate becomes. If the forward loan is taken out with a fixed interest rate of 10 years, the interest premium is less than with a loan with a fixed interest rate of 15 years.
If you are looking for suitable follow-up financing, you should get offers in good time – this guarantees you the best possible comparison. Our on-site consultants will be happy to find out whether and when a forward loan will be worthwhile for you in a personal conversation with you. You have a close look at the current interest rate development and are looking for the right offer from our large number of banking partners.