What is the Monthly Payment on a €100,000 Mortgage?

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Mortgage Rates May Drop Following ECB Interest Rate Cuts

The mortgage payment could decrease by approximately 18 euros following the recent European Central Bank (ECB) interest rate cuts.

In September 2024, for instance, the average fixed rate has dropped to a nominal annual rate (TAN) of 2.63%, while the variable rate remains above 4%.

But what can one expect to pay on a mortgage of 100,000 euros? And how have conditions shifted compared to two years ago?

For those contemplating buying a home today, the mortgage landscape is significantly different from that of 2022, showing signs of stabilization, especially regarding interest rates.
However, with the ECB poised to lower rates possibly three times before December to stimulate the economy, is now the right time to secure a mortgage, or would it be wiser to wait?

Current Mortgage Payment Comparisons

When considering a mortgage, one of the foremost decisions is whether to select a fixed or variable interest rate.
As of September 2024, the stark differences between these two rates remain, even with a minor drop in variable rates since 2022.

Let’s examine a hypothetical mortgage of 100,000 euros for purchasing a first home.

Property Value	Mortgage Amount	Duration	Fixed Rate Payment	Fixed Rate (IRS)	Variable Rate Payment	Variable Rate (Euribor + Spread)
200,000€	100,000€	30 years	387.37€	2.35% (IRS 30A + 0.07%)	471.76€	3.99% (Euribor 3M + 0.45%)
160,000€	100,000€	30 years	387.37€	2.35% (IRS 30A + 0.07%)	474.69€	4.04% (Euribor 3M + 0.50%)
200,000€	100,000€	20 years	530.39€	2.51% (IRS 20A + 0.04%)	599.37€	3.99% (Euribor 3M + 0.45%)
160,000€	100,000€	20 years	530.88€	2.52% (IRS 20A + 0.05%)	602.04€	4.04% (Euribor 3M + 0.50%)

A 30-year fixed-rate mortgage with an LTV up to 50% currently has a monthly payment around 387.37€ at a TAN of 2.35%, increasing to 411.43€ for a Green mortgage (TAN 2.81%).
In contrast, a variable rate at 3.99% leads to a monthly payment of 471.76€.

Subsequently, looking at a 20-year mortgage, the gap between fixed and variable narrows, yet remains significant, with fixed rates at 530.39€ (549.60€ for Green) and variable rates at 599.37€.
The flexibility of the variable rate could provide benefits depending on Euribor fluctuations.

Changes in Mortgage Payments Since 2022

Since September 2022, the mortgage market has undergone considerable shifts.
For instance, the Euribor stood at 0.71% then, now at 3.469%.
This increase has profoundly impacted variable mortgage rates, although banks have lowered the spreads from about 1% to 0.50%-0.70% currently.

Mortgage Amount	Duration	Fixed Rate Payment 2022	Fixed Rate (TAN)	Variable Rate Payment 2022	Variable Rate (Euribor + Spread)
100,000€	30 years	416.23€	2.90%	355.29€	1.71% (Euribor + Spread)
100,000€	20 years	549.60€	2.90%	492.26€	1.71% (Euribor + Spread)

Compared to September 2022, securing a fixed-rate mortgage has become cheaper, with payments now under 400€ for 30-year loans and around 530€ for 20-year deals.
Conversely, the cost of variable-rate loans has increased sharply due to rising Euribor rates.

Outlook for 2025

Looking ahead, the mortgage landscape in 2025 will hinge significantly on inflation and economic conditions that influence monetary policy decisions by central banks.

If market tensions ease with inflation stabilizing near the 2% target, it may facilitate gradual reductions in rates, particularly for variable mortgages.

Nonetheless, a decline in Euribor isn’t guaranteed, as forecasts suggest stabilization around 3%-3.5% in 2025.
This means variable payments could remain elevated compared to pre-pandemic levels.
Existing variable mortgage holders might see gradual payment increases unless they leverage refinancing options to secure better rates.

For fixed-rate mortgages, however, greater stability is anticipated.
The IRS rate for long-term mortgages may hover around current levels, promising borrowers predictable payments throughout the loan’s term, a crucial advantage in uncertain economic times.

For a comprehensive understanding, always consult financial experts and consider all available options in mortgage agreements.

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