Borrowing rate (nominal rate)

The Sollzins (borrowing rate, formerly: nominal interest rate) is the pure interest rate you pay for borrowed money – without additional costs and fees.

Fixed vs. variable:

Fixed borrowing rate:

• Stays the same for the agreed fixed-rate period (e.g. 10, 15, 20 years)
• Advantage: planning certainty – your instalment doesn't change
• Disadvantage: if market rates fall, you still pay the old rate

Variable borrowing rate:

• Adjusts regularly to the market rate (usually linked to EURIBOR)
• Advantage: you benefit immediately from falling rates
• Disadvantage: risk of rising instalments when rates go up
• Right of termination: with a variable rate you can terminate at any time with 3 months' notice

Current borrowing rates (mortgages in Germany, 2025):

• 10 years fixed: approx. 3.3–3.8%
• 15 years fixed: approx. 3.5–4.0%
• 20 years fixed: approx. 3.7–4.2%

Important: don't compare loans by the borrowing rate but by the effective interest rate – it includes all additional costs.