World savings day: reschedule real estate loan now, saves money

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Vienna (ots) – Interhyp Austria helps customers get out of debt sooner

• Use low interest rates: Top interest rates for ten-year fixed loans at 0.5 to 0.8 percent, for variable loans between 0.25 and 0.50 percent nominal
• With a loan rescheduling, customers can become debt-free earlier than expected, save a few thousand euros and thus receive free budget for new projects.
• Interhyp branch manager Andreas Luschnig: “Customers who took out a mortgage loan before June 1, 2019 should have their terms checked.”

If the savings interest is below one percent, the money in the bank can hardly multiply. So saving in the classic sense is currently difficult. But Austrians who have an open loan benefit from the historically low interest rate level: “In the current situation, especially those who borrow money can save,” says Andreas Luschnig, head of the Interhyp branch in Vienna. On World Savings Day on October 31, the broker for private real estate loans would like to draw the Austrians’ attention to the importance of debt restructuring, which is still underestimated in this country. Luschnig: “We did the math: Anyone who took out their mortgage loan before June 1, 2019 would have to save a lot of money through the interest savings that can now be achieved if they reschedule to another bank at the current interest rate.”

“Anyone who buys a house or an apartment only indirectly thinks about saving,” says Luschnig. After all, it is important to raise a large sum before savings arguments such as rent savings, independence from rental developments, usually larger living space in your own home and greater financial flexibility in old age, when the property is paid off, take hold. And most people in this country do not pay for their house or apartment out of their own pocket, but need a mortgage loan. “With interest rates currently historically low, borrowers pay much less for their home loan than they did a few years ago.” On the other hand, real estate prices have risen sharply in many places, which is why the sum to be spent on property has not necessarily decreased.

Debt rescheduling pays off – around half a million Austrians affected

However, anyone who bought their single-family home or city apartment a few years ago can particularly benefit from the current situation: “Many Austrians do not know that rescheduling the existing financing is even possible,” says Interhyp branch manager Andreas Luschnig. “As a rule, a borrower can save a lot of money in this way, because due to the currently better interest rate level and his credit rating, which has grown through years of paying off, he will get much better terms today than when he first took out the loan.”

Just a few percentage points can make the difference: “Even 0.5 percentage points of the interest rate difference means savings of EUR 10,000 over ten years with an outstanding loan amount of EUR 200,000,” Luschnig calculates. Interhyp Austria looked at the interest rate development of the past months and years and found that Austrians in particular who took out a real estate loan before June 2019 should take a look at their current conditions: “Anyone who currently has an effective interest rate of between two and six percent on his Paying the loan amount will very likely save a lot of money through debt restructuring and become debt free sooner. ” According to Interhyp Austria, around 500,000 compatriots currently have a real estate loan, the volume and term of which would be reduced by rescheduling.

Saving as a task for society as a whole

World Savings Day has a long tradition: it was first proclaimed in October 1924 in Milan at the first International Savings Banks Congress with the participation of 27 countries: both to raise people’s awareness of the issue of saving, but also to raise people’s confidence, which was shaken after the currency reform to strengthen in money again. Since then, World Savings Day has been celebrated annually around October 31. This year, many banks are extending World Savings Day to World Savings Weeks in order to take into account the special circumstances caused by the COVID-19 pandemic.

About Interhyp

Interhyp was founded in 1999 by the Austrian Robert Haselsteiner and the German Marcus Wolsdorf. Today, the company is one of the leading brokers for private housing finance in Germany and has also been active in Austria since autumn 2018 with a branch in Vienna. With its radically transparent and customer-oriented approach, the young start-up revolutionized the German market 20 years ago; in 2005 it was the most successful IPO of the year before the company was integrated into the ING family in 2008. In 2019, Interhyp placed a mortgage volume of 24.5 billion euros with its around 500 banking partners. The Interhyp Group employs around 1,600 people and is present in over 100 locations.

Inquiries & contact:

Caroline Neider
Press spokeswoman Austria
Phone + 43-1-2530710-151
Car: + 49-175-4221774
Email: caroline.neider@interhyp.at
www.interhyp.at

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