Mr. Hertweck, building societies are benefiting from the rise in interest rates.

Are they crisis winners?

Markus Fruehauf

Editor in Business.

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No, the building societies are more likely to be helping to mitigate the crisis.

Because they continue to offer low interest rates.

In this way we help many families to realize their dream of owning their own four walls or to modernize their house energetically.

Why is home loan savings currently attractive?

The value of the product is made up of its plannability, its maximum security and at the same time the greatest possible flexibility.

Home savers already know their loan conditions at the beginning of the savings phase.

However, you can adapt your contract to the general conditions at any time.

In addition to the housing purpose, building society savings also serve to accumulate assets.

In the current environment of high inflation and rising interest rates, savers can secure the current conditions for a longer period of time.

This is an invaluable advantage.

Interest rates on home savings loans are still between 1.0 and 1.5 percent, while ten-year real estate loans from banks currently cost 3.5 percent.

But the rising interest rates are not only advantageous for building societies.

Higher interest rates make it difficult for many people to buy real estate.

In addition to the higher construction and energy costs, they also have to pay higher interest expenses, which can overwhelm households with lower incomes in particular.

Before the turnaround in interest rates, around 30 percent of net income had to be spent on home ownership; now it is 40 percent.

Politicians are required here if home ownership is not only to be a privilege for higher earners.

It must continue to be possible for broad sections of the population.

What are your demands from politicians?

We need better ways for households to accumulate sufficient equity.

That needs to be encouraged accordingly.

The employee savings allowance can be increased and residential Riester reformed.

In addition, a follow-up regulation to the Baukindergeld is necessary.

Finally, the reduction of ancillary costs must also be considered.

Allowances for real estate transfer tax can be useful.

What do you expect for the German real estate market?

We assume a soft landing.

The price increase will no longer continue as in previous years.

Higher interest rates result in lower demand.

We are also seeing real estate developers shelving projects.

In certain locations in the metropolitan areas where prices have risen particularly sharply, a price drop of up to 10 percent is even possible.

There will be no more exaggerations, but also no collapse in prices.

The outlook still has many question marks.

In the uncertain environment, long-term decisions tend to be postponed.

How are building societies preparing for the recession?

We have a very conservative business model, our customers save up for the loan.

In addition, the Bausparkassen tend to finance real estate across the country rather than in conurbations.

Half of our new business is now attributable to energy-related measures, which is generally safer because the property has already been financed.

What are the biggest challenges for building societies?

We are currently seeing growth in new business that we have not seen in a long time.

But the rise in interest rates stresses every investor.

Hedging the risk of interest rate changes is our greatest challenge. The supervisory authorities also take a very close look at this.

In addition, building societies must keep an eye on the risks.

You may not grant loans to customers who cannot service them on a permanent basis.

Is the financing of energy-related measures the building society's contribution to climate protection?

Without the renovation of the building stock, the climate goals cannot be achieved.

70 percent of the apartments are not yet energy-efficient.

The topic is also gaining in importance from a financial point of view, because energy efficiency is now an important factor for the value of real estate.

It has long been a standard question in sales talks. Wüstenrot's energy efficiency business has increased by 400 percent this year compared to the previous year.

The building societies provide active climate protection here.

Do savers who have now concluded a contract have to wait longer for the loan to be allocated because the collective has not yet saved enough?

I rule that out because we had a very large overhang of deposits during the low-interest phase.

At that time, very few home savings loans were called.

In normal times they account for 70 to 80 percent of the deposit portfolio, in the low interest phase it was only 10 percent.

We are now getting back to normal.

The limits are not exceeded.

Did the building societies have to draw consequences from the reputational damage caused by the wave of terminations in old contracts with high interest rates?

Terminations only accounted for between 1 and 2 percent of the contract portfolio for each building society.

In the meantime, more and more loans are being drawn down from the old contracts.

The negative headlines are now six to seven years ago.

The building societies have been able to improve their reputation and are perceived as reliable partners.

The high interest rate contracts were a consequence of the high interest rate phase in the 1980s and 1990s.

At that time, a large number of loans were drawn down, which is why the building societies were forced to strengthen the deposit side.

There may have been exaggerated savings incentives and marketing measures.

We now have a much more balanced tariff structure.

Our attractiveness is now due to the credit conditions.