Make a note of the date the fixed interest rate period ends when you take out the loan and every time you extend it (Photo: © bartusp/123RF.com)
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July 1, 2026
Many mortgage loans are expiring soon – and interest rates have risen significantly. We explain how you can secure better terms and keep your financing under control.
There's more worrying news from the financial sector: Many mortgage loans will have their fixed interest rate periods expiring in the coming years. As a result, business owners often have to reckon with significantly higher follow-up interest rates . The figures are clear: Around five years ago, the effective interest rate for mortgages was sometimes below one percent per year. Today, depending on the fixed interest rate period, property owners often pay more than four percent annually. Anyone can easily calculate how much this will increase monthly payments.
Hoping for lower interest rates is pointless, as there are many indications that they will continue to rise . Therefore, you shouldn't postpone discussions with your bank. Address the issue proactively – ideally a year or more before your fixed interest rate period ends.
Many people currently have the impression that banks are scrutinizing their customers' creditworthiness more closely when renewing a loan. Renewals are no longer automatic and straightforward. Banks often request more information about your business's financial situation . Furthermore, it's frequently difficult for customers to understand how the bank determines the new interest rate. Therefore, you should prepare thoroughly. This will allow you to have a constructive dialogue with your bank.
Plan carefully. Above all, realistically assess how your business's liquidity will develop. This will determine how high your future interest and principal payments (annuity) can be. In recent years, you have already reduced your loan through regular repayments and possibly extra repayments. Therefore, you can often lower your future payment simply by doing so.
Operations management
Operations management
Operations management
Perhaps you have built up savings in the meantime and can repay part of the loan. This will further reduce your financing costs. Also pay attention to the remaining term and the new fixed interest rate period , for example, five or ten years. Obtain several offers for this – not just from your current bank.
The amount of the repayment also plays an important role, as it affects the total monthly payment. Banks can easily show you how different repayment rates affect the loan term and the overall cost. This also applies to different loan terms . For example, if you are considering spreading your remaining loan over several terms such as three, five, or ten years, you can have the financial consequences clearly illustrated using amortization schedules.
First, speak with your current bank and ask for an offer. Important: Also ask how long the bank is bound to this offer. At the same time, you should also obtain offers from a second or third bank. Thanks to the internet, you can quickly get an overview of the terms and conditions offered by many providers.
In the past, many business owners relied heavily on their primary bank . You shouldn't do that anymore. Actively leverage the competition between banks. If your business is financially sound and has a good or at least satisfactory credit rating, you have a strong negotiating position. It's quite possible that the traditional role of the primary bank will continue to decline in importance in the future, and business owners will increasingly compare offers.
If you're switching banks for better terms , carefully examine the associated costs. Generally, the new bank simply assumes the existing mortgage registered in the land register. This incurs transfer fees , which are usually manageable. Be sure to clarify this point beforehand and compare the costs with the potential interest rate savings.
1. When taking out the loan and with each renewal, make a note of the date on which the fixed interest rate period ends. Don't rely solely on your bank; take action yourself in good time.
2. Take action about a year or earlier before the expiry date and first have a conversation with your current bank.
3. If you receive better offers from other banks, renegotiate consistently . Banks are reluctant to lose reliable customers to competitors over small differences in interest rates.
4. Extra tip : With a forward loan , you can secure current interest rates today – depending on the provider, several years before your fixed-rate period expires. Banks usually charge a small premium for this, which they sometimes waive. You can often negotiate this premium. Therefore, always check this option when you want to extend your financing.
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