Based on available loan options the estimated interest rates for mortgages on primary residences range from 3.50% to 4.00% for the local bank base rate and 4.30% to 4.80% for Euribor or European Central Bank base rate options.

It’s important to note that the local bank rate may initially appear more attractive, usually due to a lower margin for the bank. However, this rate is determined by the local bank using pre-approved methodologies that could be altered in the future, making it more susceptible to changes compared to Euribor or European Central Bank rates. Before 2013, local banks used to change interest rates at will.

On the other hand, the European Central Bank rate is less likely to change, as it only moves if the European Central Bank decides to do so or if the Euribor rate changes. This means it is beyond the control of local banks, who usually charge a higher margin. These rates are tied to the overall European economy and are considered less risky, giving borrowers peace of mind knowing the bank can’t alter it arbitrarily.