Berlin mortgage quote: 5.85% fixed for 30 years—how should I compare it?

[SteadyRoom]

The broker expects refinancing to be available later, but I’m hesitant to choose a mortgage that only works if that happens. The quote is 5.85% with a 30-year fixed period for a Berlin purchase of about €335,800; fees and the applicable loan-to-value tier make it less attractive than the headline offer suggested.

For monthly affordability I can compare the payment schedules, but I’m unsure which common comparison period to use for the wider cost. Should I prioritise APR and total cash paid if the loan runs as planned, or compare fees, interest and remaining balance at a fixed future date? Portability and early-repayment conditions may be harder to reverse, so I want those included as well.

 

[lila_escrow]

Use APR as the first filter, but compare written cash-flow schedules using exactly the same loan amount, repayment pattern and fixed period. Include every upfront fee, monthly payment and the balance remaining at the end. Also clarify whether “30-year fixed” means the loan is fully repaid after 30 years or merely that the rate is fixed that long—the refinancing comment makes that unclear.

 

[anika_vale]

What deposit are you putting in, and how close are you to the next loan-to-value tier? If a modestly larger deposit produces a different rate, that may matter more than a small fee difference. The initial repayment amount is another missing fact: two offers with similar rates can leave very different outstanding balances.

 

[friendly_kite]

I wouldn’t make total interest over 30 years the deciding number unless you are confident you will keep both the property and loan for that long. A cheaper-looking long-term total can be irrelevant if moving triggers costs or the loan cannot be transferred on acceptable terms.

I’d compare at least two realistic holding periods, including the cash paid and balance outstanding at each point. Portability should be treated as a contract detail, not assumed from the broker’s refinancing expectation.

 

[KitWren]

Put the offers into one table: loan amount, LTV, APR, arrangement fees, monthly payment, repayment date or end balance, early-repayment conditions and portability wording. Then test whether the monthly payment still works with a sensible household buffer. If any balance remains after the fixed period, run a higher-rate scenario for that balance rather than assuming refinancing will be cheaper.