Forward loan for interest rate hedging: Secure today's conditions for tomorrow
14 Jun 2025
Katrin Straub
Managing Director at nextsure
Interest rates for mortgage financing fluctuate, and an increase can significantly raise the cost of your follow-up financing. A forward loan allows you to secure today's potentially lower interest rates for the future.
The topic in brief and concise terms
A forward loan secures today's interest rates for a follow-up financing in up to five years.
The interest rate security involves a surcharge, which quickly pays off when market interest rates rise.
There is a legal obligation to accept; failure to do so may result in a substantial compensation payment.
Läuft die Zinsbindung Ihrer Baufinanzierung in den nächsten Jahren aus, stehen Sie vor einer wichtigen Entscheidung. Steigende Marktzinsen können die monatliche Belastung um hunderte Euro erhöhen und die Finanzplanung durcheinanderbringen. Mit einem Forward-Darlehen zur Zinssicherung für die Zukunft können Sie diesem Risiko proaktiv begegnen. Sie schließen heute einen Vertrag zu festen Konditionen ab, der erst in bis zu fünf Jahren aktiviert wird, und gewinnen so wertvolle Planungssicherheit.
Realistically assess the interest rate risk in follow-up financing
The current interest rate trend poses a significant financial risk for many property owners. Even a slight increase in the interest rate can significantly affect the monthly payment. Experts predict an interest rate level between three to four percent for 2025.
With an outstanding debt of 200,000 euros, an interest rate increase of just one percent means 2,000 euros more in interest costs per year. This additional burden can jeopardise the entire household budget. Therefore, monitoring the current developments in mortgage rates is essential.
This uncertainty makes it necessary to address the follow-up financing early on, to avoid being caught off guard by unfavourable market developments.
The functioning of the forward loan as a hedging instrument
A forward loan is essentially a classic annuity loan that you reserve for the future. Today, you agree with a bank on a fixed interest rate for follow-up financing that begins in 12 to 66 months. This period between contract conclusion and payout is referred to as the forward period.
During the forward period, you do not pay any provision interest, which is a clear advantage. You secure today's terms for tomorrow's financing. The contract is legally binding, which means you must take on the loan later.
This approach offers high planning security, as your future monthly instalment is already fixed years in advance. This way, you can calculate and secure your construction financing at a favourable rate.
Weighing costs and benefits: The interest surcharge in detail
For interest rate security over the forward period, the bank charges a so-called forward premium. This premium typically ranges between 0.01 and 0.03 percentage points per month of lead time, depending on the provider and market conditions.
With a forward period of 24 months and a monthly premium of 0.02 percent, the total interest premium amounts to 0.48 percent. If the current building interest rate is three percent, the secured forward rate is therefore 3.48 percent. This premium is the cost of your insurance against rising interest rates.
Here is a sample comparison calculation for a remaining debt of 150,000 euros:
Scenario A (Forward loan): Interest rate secured at 3.5 percent.
Scenario B (Waiting): Market rate rises to 4.5 percent in two years.
Scenario C (Waiting): Market rate falls to 3.0 percent in two years.
The decision for a forward loan is therefore a bet on future interest rate developments, which pays off considerably if interest rates rise.
Determine the optimal time to complete
A forward loan is worthwhile when the expected interest rate increase is greater than the forward premium to be paid. Experts recommend monitoring the market closely at least 36 months before the end of the fixed interest period. Making an informed decision requires a careful analysis of your personal financial situation and interest forecasts.
The following points will help you in making your decision:
Check the amount of your remaining debt and the remaining term.
Compare current offers for forward loans from different providers.
Find out about the long-term interest rate development forecast.
Calculate the break-even point at which interest savings exceed the premium.
Consider your personal risk tolerance and desire for planning security.
The longer the forward period, the higher the premium tends to be. Therefore, carefully weigh how much early security is worth to you before considering a debt restructuring.
Consider alternatives to forward loans
In addition to the forward loan, there are other options for refinancing your loan. A common alternative is a prolongation, which means extending the loan with your current bank. This is straightforward but not always the most cost-effective solution.
Another possibility is a building savings contract, which also allows you to secure a fixed interest rate for the future. However, this requires a savings phase, which demands additional financial discipline. The interest rates for the building loan are often low, but the overall costs can be higher due to the low interest during the savings phase.
The third option is a classic refinancing with a new bank at the end of the fixed interest period. This offers the chance of getting the best market conditions but comes with the full interest rate risk. Comprehensive advice, such as that offered by nextsure, will help you find the right strategy for your annuity loan.
Set the course for your future now
Choosing whether or not to take a forward loan has significant financial implications. Careful planning and a precise comparison of options are crucial for your success. Do not wait until the pressure from an expiring fixed-interest period increases.
Act proactively and leverage the current market conditions to your advantage. Making an informed decision early protects your assets and secures your home for the future. Start planning your follow-up financing today.
Request your individual risk analysis now: Have your insurance situation checked for free and receive concrete optimisation suggestions.
More useful links
Wikipedia explains what a forward loan is, how it works, and what advantages and disadvantages it offers.
The Deutsche Bundesbank provides statistical data on interest rates for housing loans to private households.
The Deutsche Bundesbank contains information and data on interest rates for housing loans to private households in Germany.
Statista shows the development of construction interest rates in Germany as a statistic.
The Statistical Office provides information on construction prices and the property price index in Germany.
The Consumer Advice Centre answers frequently asked questions about construction and property financing.
The Ifo Institute publishes the economic forecast for summer 2025.
The Deutsche Bundesbank provides current monthly reports.
FAQ
Was ist ein Forward-Darlehen?
Ein Forward-Darlehen ist eine Form der Anschlussfinanzierung. Sie schließen heute einen Darlehensvertrag mit einem festen Zinssatz ab, der aber erst in der Zukunft (z.B. in ein bis fünf Jahren) ausgezahlt wird, um Ihre bestehende Baufinanzierung abzulösen.
Welche Vorteile bietet ein Forward-Darlehen?
Der Hauptvorteil ist die Planungssicherheit. Sie schützen sich vor zukünftig steigenden Zinsen und kennen Ihre monatliche Rate für die Anschlussfinanzierung bereits Jahre im Voraus. Zudem fallen in der Vorlaufzeit keine Bereitstellungszinsen an.
Welche Nachteile und Risiken gibt es?
Der größte Nachteil ist die Abnahmepflicht. Sinken die Zinsen entgegen Ihrer Erwartung, müssen Sie das Darlehen trotzdem zu den teureren, vereinbarten Konditionen annehmen. Zudem verlangen Banken einen Zinsaufschlag für die Bereitstellung.
Was ist der Unterschied zwischen einem echten und einem unechten Forward-Darlehen?
Bei einem echten Forward-Darlehen beginnt die vereinbarte Zinsbindung (z.B. zehn Jahre) erst mit der Auszahlung. Bei einem unechten Forward-Darlehen beginnt die Zinsbindung bereits bei Vertragsabschluss, wodurch sich die effektive Laufzeit nach Auszahlung verkürzt.
Was ist eine Nichtabnahmeentschädigung?
Wenn Sie das Forward-Darlehen vertragswidrig nicht in Anspruch nehmen, entsteht der Bank ein Zinsschaden. Diesen Schaden stellt sie Ihnen in Form der Nichtabnahmeentschädigung in Rechnung, die sehr hoch ausfallen kann.
Welche Alternativen gibt es zum Forward-Darlehen?
Alternativen sind die Verlängerung des Kredits bei der Hausbank (Prolongation), die Aufnahme eines neuen Kredits bei einer anderen Bank zum Zeitpunkt des Zinsbindungsablaufs (Umschuldung) oder die Absicherung über einen Bausparvertrag.
