Check24 is no longer involved in construction financing, but consumers who used the platform to apply for building loans do not need to worry about their agreements being affected. The actual lending was carried out by the bank, and those agreements are ongoing. While Check24 served as a middleman, its departure from the market highlights broader shifts in how the building financing industry is evolving.
Herbst explains that the market is becoming more competitive. Two key groups of banks are actively stepping up their involvement in real estate loans, according to Bastian Walkhoff, a construction financing specialist at the Zeb banking consultancy. Walkhoff believes this competition will benefit customers. However, he also notes that the demand for construction financing has dropped in recent months. Data from Barkow Consulting indicates that May was the weakest month for sales since December 2024. Herbst suggests this decline is due to a spike in loan applications at the start of the year, when interest rates were more favorable. At that time, building loans for 250,000 euros could be secured with an average interest rate of 3.95 percent, assuming 20 percent equity. Today, the average interest rate has risen to 4.3 percent.
Interest Rates and Declining Demand
Banks' Growing Involvement
Despite the recent drop in sales, construction financing remains a significant source of revenue for banks. Walkhoff anticipates that local credit institutions, including savings banks and cooperative banks, could earn around 15.4 billion euros from real estate loans by 2030. This is an increase from the current total of just over 13 billion euros. According to Herbst, the withdrawal of Check24 from the market will not lead to a major shift in the industry. He explains that construction financing is a lucrative area, and banks, especially local ones, view it as a key way to retain customers. Herbst notes that many regional banks are currently investing heavily in improving their building loan processes and making them more appealing to potential borrowers.
Herbst also points out that customers are currently in a strong position when it comes to choosing a lender. He says regional banks, such as savings banks and cooperative banks, often approve loans that national banks might reject. Part of the reason is that these local institutions are already familiar with the borrower as a long-term customer, and they also have a better understanding of the local real estate market. Walkhoff agrees, stating that the ability to evaluate a property firsthand is a critical factor. While remote property evaluation tools are becoming more common, he argues that nothing replaces a physical inspection when it comes to making accurate assessments. In his view, digitalization in this field has limits. While certain straightforward cases—such as financing a new building with a clear title and few special features—can be handled entirely online, most real-world situations still require human expertise and in-person involvement.
The Role of Advisors
Herbst adds that construction financing is still largely driven by personal interaction between advisors and borrowers. Fully automated loan applications, which can be completed in as little as half an hour, are available but do not appear to be in high demand. Borrowers are typically more concerned with securing the best possible terms than with speed. Herbst argues that while digital platforms offer convenience, they cannot replace the value of in-person consultation. He explains that the current real estate market is a buyer’s market, and customers are taking their time to carefully choose the most favorable conditions for their loans.
Digital applications are evolving, but Herbst maintains that advisors and agents remain essential in the process. He emphasizes that customers are not in a rush to sign agreements, which makes personalized support more valuable than fast, automated options. In summary, the construction financing industry is adapting to new technologies, but the human element continues to play a central role in helping borrowers make informed decisions.