Short answer: When the fixed-rate period (Zinsbindung) ends, the loan does not. Whatever you still owe (Restschuld) stays and needs a follow-up financing (Anschlussfinanzierung) at the interest rate on offer at that time. You can extend with your current lender (Prolongation), move the balance to another lender (Umschuldung), or lock in a rate in advance with a forward loan (Forward-Darlehen).
In short
- After a 10-year fixed rate, most of the loan is usually still outstanding. In the example below, 77 %.
- The new interest rate (Sollzins) applies to the remaining balance. If you keep the same monthly payment, a higher rate means a longer remaining term, not a bigger payment.
- A forward loan buys certainty with a surcharge. It pays off only if rates at the end of your fixed period turn out higher than today's forward rate.
- If the fixed rate ends and no new rate has been agreed, you can terminate the loan, in whole or in part, with one month's notice. It takes effect at the earliest when the fixed rate ends (§ 489 Abs. 1 Nr. 1 BGB).
What actually ends, and what doesn't?
Only the price is fixed for a limited time. The debt itself runs until it is repaid. A typical contract fixes the Sollzins for 10 years. After that, the remaining balance is refinanced at the rate that applies then.
Our example loan (we use it throughout this series):
| Purchase | €400,000 in Bavaria, €50,000 equity |
| Purchase costs | 5.5 % = €22,000, included in the loan |
| Loan | €372,000 |
| Sollzins / initial repayment | 3.00 % / 2.00 % (Tilgung) |
| Monthly payment | €1,550 |
| After 10 years | about €87,000 repaid, €285,360 still owed (about 77 %) |
That balance is what the next rate gets applied to.
What does a different rate do to the same payment?
Say you keep paying €1,550 a month on the €285,360 balance. The new rate decides how long it takes:
| New Sollzins | Remaining term | Interest over remaining term |
|---|---|---|
| 3 % | 20.6 years | €97,450 |
| 4 % | 23.8 years | €157,631 |
| 5 % | 29.2 years | €257,824 |
| 6 % | 42.3 years | €501,588 |
Assumptions: balance €285,360 after 10 years, payment unchanged at €1,550, no special repayments (Sondertilgungen). Own calculation.
The alternative is to raise the payment so the loan ends on a target date. To repay the same balance in 20 or 15 years you would need roughly:
| New Sollzins | Payment for 20 years | Payment for 15 years |
|---|---|---|
| 3 % | €1,583 | €1,971 |
| 4 % | €1,729 | €2,111 |
| 5 % | €1,883 | €2,257 |
| 6 % | €2,044 | €2,408 |
Reading the tables: at 4 % the 20-year payment is about €180 above today's €1,550. At 6 % it is almost €500 higher. That jump is the real cost of rate risk, and it is why timing matters.
The three routes compared
| Prolongation | Umschuldung | Forward-Darlehen | |
|---|---|---|---|
| What it is | New fixed-rate period with your current lender | A new loan from a different lender pays off the old one | |
| The rate for the follow-up period is agreed now, in advance | |||
| When the rate is set | Shortly before or at the end of the fixed period | When you switch | Months or years before the |
| end | |||
| Main upside | Little paperwork | You can compare offers from the whole market | Protection against rising rates |
| Main cost or risk | You may compare fewer offers | Paperwork; the Grundschuld and fees need checking | A surcharge; |
| you lose out if rates fall |
How much does a forward loan cost?
Lenders may add a surcharge to the current interest rate for each month between signing the contract and the start of the follow-up financing. A commonly quoted range is 0.01 to 0.03 percentage points per month of forward period (Allianz; Dr. Klein). However, actual surcharges vary by lender and market conditions. Some lenders waive the surcharge for shorter forward periods. The exact terms should be checked against individual offers.
An illustration on the balance above:
| Lead time | Surcharge per month | Total surcharge | Extra interest in the first year |
|---|---|---|---|
| 24 months | 0.02 pp | +0.48 pp | about €1,370 |
| 36 months | 0.02 pp | +0.72 pp | about €2,055 |
| 36 months | 0.03 pp | +1.08 pp | about €3,082 |
Illustrative surcharges, not an offer. Calculated on €285,360 for one year, without repayments.
A forward loan works like insurance. It pays out when the market rate at the end of your fixed period is higher than the forward rate you locked in. If rates fall or stay flat, you paid the premium for nothing.
What does the law say about timing?
Two rules in § 489 BGB matter here, and they are easy to confuse:
- Fixed rate ends, no new agreement (Abs. 1 Nr. 1): you can terminate the loan in whole or in part with one month's notice. The termination takes effect at the earliest at the end of the day the fixed rate ends. If you have already agreed a new rate, this rule does not apply.
- 10 years after full payout (Abs. 1 Nr. 2): you can terminate with six months' notice, even if a longer fixed rate is still running. A new agreement on the repayment time or the interest rate replaces the payout date as the start of that 10-year period.
Many websites cite the second rule as "§ 489 Abs. 2". The statute places it in Abs. 1 Nr. 2. Abs. 2 covers variable-rate loans, with three months' notice. What leaving costs during a fixed period is a different question, see Leaving a loan early: § 489 BGB and the Vorfälligkeitsentschädigung.
Frequently asked questions
Do I have to take a follow-up financing from my current lender?
Can I repay part of the balance when the fixed rate ends?
What if I do nothing?
Is a forward loan worth it?
All calculations are for information only and are not financial advice. Check amounts and legal details with your lender or a qualified advisor.
The information in this article is for general information only and is not financial advice. Interest rates and terms depend on your personal situation and change over time. For a personalised offer or interest rate, speak to your bank or your financial adviser.
Keep track of the end date with Hypomeister
The most expensive way to meet your Zinsbindungsende is by missing it. In Hypomeister you enter your loan once, see your outstanding balance at the end of the fixed period, and get a reminder before it ends. You can also compare the market rate against your own Sollzins.
→ Open Hypomeister · Glossary: Zinsbindung, Restschuld, Prolongation