Lending rates of banks / Mortgage loans secured by residential real estate with interest rates fixed for 10 years, effective interest rate / Average interest rate
Most frequently occuring interest rate for new business within the reporting period (the two middle weeks of a given month). Since January 1991 the rates of banks in the new Länder have been included in the interest rate survey. The average rates are calculated as unweighted arithmetic means from the interest rates reported to be within the spread. The spread is ascertained by eliminating the reports in the top 5% and the bottom 5% of the interest rate range. The figures refer to the time when the contract was concluded and not to the entire duration of contract. The calculation of the effective interest rate is based on an annual redemption rate of 1% plus interest saved; the repayment conditions agreed upon in each case by the banks involved are taken into account. From the reporting month September 2000, effective interest rates are calculated according to the ISMA method (International Securities Market Association). The use of the ISMA method (non-linear remuneration of less than one year) in this context tends to result in slightly lower effective annual interest rates.
