The EIB Group is making the more favourable conditions possible through a synthetic securitisation operation on consumer loans. The transaction frees up regulatory capital for Deutsche Bank, which will pass on the advantages of the transaction to clients in the form of discounted mortgages. The securitisation falls under the framework for simple, transparent and standardised securitisation (STS) of the European Securitisation Regulation.
Deutsche Bank will grant the discounted loans from its Private Bank through Deutsche Bank, DSL Bank and, from the beginning of June, BHW Bausparkasse. The interest rate advantage currently amounts to 0.2 percentage points per annum compared to standard conditions for the entire first fixed interest rate term, provided this is at least five years.
To be granted a mortgage, borrowers must meet particularly demanding sustainability criteria. For example, individuals looking to finance a modernisation project are required to reduce the property’s primary energy demand by at least 30%.
The overall intended outcome of the cooperation is to provide more than €600 million worth of low-interest mortgages to help individuals in Germany build climate-friendly houses.