The ECB rate is not your mortgage rate

Short answer #

ECB rates are macro context. Your offer also includes term, funding, property, loan-to-value and credit components, so enter only the offered rate in the calculator.

Important variables #

• Price, rent and holding period
• Rate, principal and remaining balance
• Buying, maintenance and selling cost
• Appreciation and alternative return

Worked example #

A 2.25% deposit facility on 23 July 2026 does not mean a ten-year mortgage costs 2.25%.

Break-even: What changes the result? #

Test the main driver as a cautious, central and optimistic range. Also check whether the ranking reverses at a crossover or remains robust across the range.

Common mistakes #

• Comparing mortgage payment directly with rent
• Omitting transaction cost or remaining debt
• Treating appreciation as guaranteed

Sources & assumptions

• Deutsche Bundesbank — Bank Lending Survey Germany, July 2026 (2026-08-17)
• RATIOXA — Methodology and formulas (2026-08-17)