Germany’s 2026 Mortgage Outlook: Slight Rate Rise Expected as Prices Hold and Energy-Efficient Homes Gain

Overview

• Engel & Völkers Finance’s Thomas Lauffs expects ten-year mortgage rates to edge about 0.3–0.4 percentage points above roughly 3.4% in 2026, echoing Interhyp’s late‑2025 view of further increases as heavier government bond issuance lifts long-term yields.
• Despite a likely uptick in financing costs, the expert does not anticipate falling home values and expects further price gains, citing renewed buyer‑seller alignment and real estate’s status as a perceived safe asset.
• Buyer behavior has shifted toward stricter affordability checks and closer scrutiny of energy performance, putting unrenovated, high‑energy‑risk properties under mounting pressure.
• Lenders are increasingly offering interest-rate discounts for planned efficiency upgrades, which can make buying and renovating older properties more attractive when integrated into the financing from the outset.
• Access to ownership remains constrained by falling affordability in major cities and steep equity requirements, with reporting indicating many buyers effectively need around €100,000 in upfront funds to compete.