Use our Glossary to understand the different German mortgage terms and definitions


Commitment Interest

This interest often applies on new construction projects for apartment buildings with a large number of apartments. The construction period can often exceed 12 months and a large part of the loan may not have been paid by the bank to the seller. Therefore, the bank does not receive any interest from you for this part of the loan. To compensate the bank, a commitment interest is calculated from this point on until the loan is completely drawn down. The cost is from 0.15% – 0.25% per month on the unpaid amount of your loan.