Comparing a 7.06% 30-year fixed mortgage for a Berlin purchase

[BoldGarden]

We’re considering a four-bedroom property in Berlin at around €639,400. The mortgage quote is 7.06% fixed for 30 years. The advertised rate was lower, but arrangement fees and our loan-to-value tier changed the actual offer.

We may move before the fixed period ends, so comparing 30-year totals could be misleading. Would you compare lenders using APR, interest paid by a likely moving date, or total cash cost including fees? I’m also checking monthly affordability, portability and early-repayment terms.

 

[sailsAndWall]

If moving early is a real possibility, I’d compare every offer over the same realistic holding period rather than using the full 30-year interest figure. Include upfront fees, monthly payments, any exit cost and the outstanding balance at that date. APR is still a useful first filter, but it won’t answer the moving scenario by itself. What loan-to-value tier are you in, and roughly when might you move?

 

[kian_roofs]

I wouldn’t ignore the 30-year comparison completely. A shorter snapshot can make a loan look attractive while hiding what happens if the move never occurs. Run at least two cases: moving on your expected date and keeping the Berlin property much longer. If another offer has a shorter fixed period, include a cautious refinancing assumption so the rate-reset risk is visible rather than assuming today’s rate continues.

 

[bakesAndView]

I’d ask each lender for written figures using the same loan amount and repayment structure, then put them into a simple table: initial fees, monthly payment, interest paid, principal remaining and charges if redeemed on your chosen dates.

Also clarify what “portable” actually means for this offer—whether it depends on approval of the next property and what happens if the replacement loan is larger or smaller. Don’t treat portability as automatically equivalent to penalty-free early repayment; the contract wording and German rules applicable to your case need checking.