Mortgage interest rate in 6+2 overseas Countries

by André Piti On 02/11/2022

The mortgage interest rate is useful to understand the real estate market growth and price accessibility for specific countries.

The mortgage interest rate includes inflation, economic growth, monetary policies, the bond market and the overall conditions of the housing market

Besides, we can use it to compare this market size to a country economy and get the household debt ratio.

For example, the size of the economy of a country determines the stability of the interest rate over time.

Generally, strong economies have higher prices for new dwellings, and this is specifically true for the northern part of Europe.

Nonetheless, countries like Germany France, and the U.K., they show fairly low interest rate (respectively 1.26 and 1.14 and 1.92 in 2021)

Getting a mortgage directly in the country you have designated to investing in can open the doors for other financial services. Also, many regular banks do not offer the option for international loans so foreign credit institutes and banks can be the solution.

This given, as we mention in our dedicated article, obtaining it will largely depends on local laws and eligibility rules; not to mention that there are no set fees, and markups can vary from entity to entity.

Eventually, foreign currency exchange and markups can also severely affect the final price you are going to pay.

Mortgage interest rate in Europe and abroad

Here is a quick list of worth of mention mortgage rates in 2021, in Europe, according to Statista:

Portugal: 0.67%

Germany: 1.26%

Italy: 1.42%

Spain: 1.46%

United Kingdom: 1.92%

Romania: 4.23%

And outside Europe:

United States: 2.65%

Russia: 9.2%

Investing in a foreign Real Estate

After the Covid-19 crisis the house market saw noticeable spikes and became an interesting plate for investors.

At the same time, many landlords were able to re-negotiate the terms of their mortgage interest rate, exploiting the volume growth and getting more favorable prices.

According to researchers, 2022 is still considered an uptrend year for this market so, if you want to ride the wave and make a profit, this can be the right time to do it.

(The information provided above does not constitute a financial advice, rather objective consideration based on data).

André Pitì