Bereitstellungszinsen: The Hidden Cost in Your Mortgage
Bereitstellungszinsen are one of the most frequently overlooked costs in German mortgage financing. While everyone focuses on the Sollzins and Effektivzins, Bereitstellungszinsen can silently add thousands of euros to your total mortgage cost — especially for new-build properties (Neubau) and renovation projects. This guide explains what they are, how they work, when they apply, and how to minimize or avoid them.
What Are Bereitstellungszinsen?
When a bank approves your mortgage, it sets aside (bereitstellt) the approved loan amount and makes it available for disbursement. However, if you do not draw down (abrufen) the full amount immediately — which is common for new builds, where the loan is disbursed in stages — the bank charges you interest on the undisbursed portion. This charge is called Bereitstellungszinsen (commitment interest).
The rationale from the bank's perspective: they have committed capital to your loan and cannot lend it to someone else, but they are not receiving interest income from you on the undisbursed portion. Bereitstellungszinsen compensate the bank for this opportunity cost.
The Standard Rate: 0.25% Per Month
The overwhelming majority of German banks charge a standard Bereitstellungszins of 0.25% per month on the undisbursed loan balance. This equals 3% per year — which is close to the actual mortgage interest rate itself. On a large undisbursed balance, this amounts to a significant cost.
It is important to understand that Bereitstellungszinsen are charged in addition to the regular mortgage interest on the disbursed portion. So during the construction phase, you may be paying regular mortgage interest on disbursed amounts AND Bereitstellungszinsen on undisbursed amounts simultaneously.
The Bereitstellungszinsfreie Zeit (Free Period)
Every mortgage contract includes a bereitstellungszinsfreie Zeit — a period after the loan contract is signed during which no Bereitstellungszinsen are charged, even if the loan has not been fully disbursed. This is the most important term to negotiate in the context of Bereitstellungszinsen.
Standard Free Periods by Bank Type
- Standard (most banks): 3-6 months — often insufficient for new builds
- Better offers: 6-12 months — achievable through negotiation or broker advocacy
- Best offers: 12-24 months — available from selected banks, especially for strong profiles
- Exceptional: Some banks offer up to 24 months for new-build financing as a competitive differentiator
The free period is often more negotiable than the interest rate itself. Banks have significant discretion here, and bringing it up as a priority during your mortgage negotiation can yield substantial savings.
When Do Bereitstellungszinsen Apply?
New-Build Purchases (Neubau)
This is where Bereitstellungszinsen have the biggest impact. When you buy a new-build property from a developer (Bauträger), the purchase price is typically paid in 7 installments according to the Makler- und Bauträgerverordnung (MaBV):
- After the land is transferred: 30% of purchase price
- After excavation and foundation: 28% cumulative
- After roof construction: 44% cumulative
- After installation of windows and heating: 58% cumulative
- After interior plaster and floor screed: 72% cumulative
- After facade completion: 84% cumulative
- After handover: 96.5% and final 3.5% after defect rectification
This staggered payment schedule means that large portions of your loan remain undisbursed for months — or even years if construction is delayed. Once the bereitstellungszinsfreie Zeit expires, you start paying Bereitstellungszinsen on these undisbursed amounts.
Renovation Projects
Similar to new builds, renovation financing is often disbursed in stages as work progresses and invoices are submitted. If your renovation takes longer than expected (which is extremely common), Bereitstellungszinsen can add up.
Existing Property Purchases (Bestandsimmobilie)
For existing properties, Bereitstellungszinsen are usually not an issue. The loan is disbursed in full once the Grundschuld is registered and the purchase contract conditions are met — typically within 4-8 weeks after the Notar appointment. The standard 3-6 month free period is more than sufficient in most cases.
Real-World Cost Examples
Example 1: New Build with 6-Month Delay
Loan amount: €400,000. Free period: 6 months. Construction takes 18 months total. After the 6-month free period, €250,000 of the loan remains undisbursed for an additional 12 months.
Bereitstellungszinsen cost: €250,000 × 0.25% × 12 months = €7,500. This is a significant hidden cost that does not appear in the Effektivzins.
Example 2: New Build with 12-Month Free Period and No Delays
Same loan, but with a 12-month free period negotiated upfront. Construction completes on schedule in 14 months. After the 12-month free period, €100,000 remains undisbursed for 2 months.
Bereitstellungszinsen cost: €100,000 × 0.25% × 2 months = €500. Negotiating the longer free period saved €7,000.
Example 3: Major Construction Delay
Loan amount: €500,000. Free period: 3 months (short). Construction is delayed by 12 months beyond the original 18-month schedule. After the 3-month free period, an average of €300,000 remains undisbursed for 27 months.
Bereitstellungszinsen cost: €300,000 × 0.25% × 27 months = €20,250. This extreme but not uncommon scenario shows how construction delays combined with short free periods can result in devastating costs.
How to Minimize Bereitstellungszinsen: Practical Strategies
Strategy 1: Negotiate a Longer Free Period
This is the single most effective strategy. Push for at least 12 months bereitstellungszinsfreie Zeit for new builds, and ideally 18-24 months. Many banks will agree if you have a strong overall profile (good equity, stable income, clean SCHUFA). A broker can identify banks that offer the most generous free periods.
Strategy 2: Build in Construction Delays
When planning your construction timeline, add a buffer of at least 6 months. Construction delays are the norm, not the exception. By expecting delays, you can negotiate a free period that covers the realistic timeline.
Strategy 3: Prioritize Free Period Over Rate
A mortgage with a 3.5% rate and 12-month free period may be cheaper overall than one with 3.3% and only 3-month free period — especially for new builds with long construction times. Always calculate the total cost including Bereitstellungszinsen.
Strategy 4: Consider Split Financing
For large new-build purchases, some borrowers split their financing between two banks — one with a shorter free period for the portion needed early in construction, and one with a longer free period for the later stages. This requires careful coordination but can reduce Bereitstellungszinsen significantly.
Strategy 5: Accelerate Disbursement Where Possible
If your construction contract allows flexibility in payment milestones, coordinate with your bank to request disbursements as early as possible. Moving from paying Bereitstellungszinsen (3% per year) to paying regular mortgage interest (3-4% per year) is essentially cost-neutral, and you avoid the double charge.
Bereitstellungszinsen and the Effektivzins: The Transparency Gap
One of the most problematic aspects of Bereitstellungszinsen is that they are NOT included in the Effektivzins (effective annual rate) that banks are legally required to disclose. This means that when you compare mortgage offers by Effektivzins — as recommended — you may be comparing incomplete cost figures for new-build financing.
Banks argue that Bereitstellungszinsen cannot be included in the Effektivzins because the actual disbursement schedule is unknown at the time of the offer. While technically true, this creates a significant transparency gap that disadvantages borrowers, particularly first-time buyers who may not know to look beyond the Effektivzins.
Tax Treatment of Bereitstellungszinsen
For rental investment properties (Kapitalanlage), Bereitstellungszinsen are tax-deductible as financing costs (Werbungskosten) in the year they are incurred. This reduces the net cost by your marginal tax rate.
For owner-occupied properties (Eigennutzung), Bereitstellungszinsen are a pure cost — mortgage interest and related financing costs are not tax-deductible in Germany for owner-occupied property. This makes it even more important to minimize these costs through negotiation and careful planning.
Questions to Ask Your Bank or Broker About Bereitstellungszinsen
- What is the bereitstellungszinsfreie Zeit for this offer?
- Can the free period be extended? What would a 12-month or 18-month free period cost in terms of a higher Sollzins?
- What is the Bereitstellungszins rate (confirm 0.25%/month or if different)?
- How is the Bereitstellungszins calculated — on the full undisbursed amount or progressively?
- Can the free period be restarted if there are significant construction delays?
- What happens if the property is never built (developer insolvency) — do I still owe Bereitstellungszinsen?
- Is there a maximum total Bereitstellungszins amount (Bereitstellungszins-Cap)?
Key Takeaways
- Bereitstellungszinsen are charged at 0.25%/month (3%/year) on undisbursed loan portions after the free period expires
- They are NOT included in the Effektivzins — a major transparency gap for new-build buyers
- The bereitstellungszinsfreie Zeit is often more negotiable than the interest rate itself
- For new builds, negotiate at least 12 months free period (18-24 months if possible)
- Construction delays are common — build buffer time into your planning
- Calculate total cost including Bereitstellungszinsen before comparing offers
- Use a broker to identify banks with the most favorable Bereitstellungszinsen terms
Frequently Asked Questions
What are Bereitstellungszinsen?
Bereitstellungszinsen are commitment fees charged by German banks on the portion of your approved mortgage that has not yet been disbursed. The standard rate is 0.25% per month (3% annually) on the undisbursed balance. They apply after a free period (bereitstellungszinsfreie Zeit) of typically 3-12 months.
How can I avoid Bereitstellungszinsen?
The most effective strategies are: (1) Negotiate a longer bereitstellungszinsfreie Zeit (12-24 months instead of the standard 3-6), (2) Ensure your construction timeline is realistic and build in delays, (3) Choose banks known for generous free periods, and (4) For existing properties, ensure quick closing to minimize disbursement delays.
Are Bereitstellungszinsen included in the Effektivzins?
No, Bereitstellungszinsen are explicitly excluded from the Effektivzins (effective annual rate) calculation. This is a significant caveat that many borrowers overlook. For new-build purchases, the actual cost of your mortgage can be thousands of euros higher than the quoted Effektivzins suggests due to Bereitstellungszinsen.
Do Bereitstellungszinsen apply to existing property purchases?
Generally no, because the loan is typically disbursed in full shortly after the Notar appointment. Bereitstellungszinsen primarily affect new-build purchases (Neubau) and renovation projects where the loan is disbursed in stages as construction progresses. However, delays in Grundschuld registration or other administrative issues could technically trigger Bereitstellungszinsen even for existing property purchases.