Structures of Residential Property Finance 2021 in Germany

In 2021, the Association of German Pfandbrief Banks (vdp) conducted a survey on the structure of financing for owner-occupied houses and flats among vdp member banks operating in that business field.

The survey, which is conducted every two years, comes to the following conclusions against the backdrop of another sharp rise in residential property prices and another slight decline in mortgage interest rates:

  • The growth of households disposable income has not kept pace with the development of residental property prices for several years.  
  • The incomes of borrower households have recently risen more strongly compared to all private households.
  • Contributed own funds have increased significantly compared to 2019.
  • The share of borrowed funds and the loan-to-value ratio have declined slightly on average.
  • The buyer households secure the favourable interest rate conditions for an average of 14 years.

The survey shows that both banks and their customers continue to put safety first at the high level of home ownership prices.

The complete survey "Structures of Home Ownership Financing 2021 - Results of a Survey among the Member Institutions of the Association of German Pfandbrief Banks" can be downloaded here.