Key facts
- Latvia has the highest average mortgage rate in the eurozone at 4.18%, while Malta has the lowest at 2.08%.
- The average mortgage rate across the eurozone in April 2026 was 3.43%.
- Southern European countries like Malta, Bulgaria, Spain, and Portugal offer lower mortgage rates.
- Baltic states, Germany, Belgium, and the Netherlands have mortgage rates above the eurozone average.
- A €200,000 mortgage over 20 years in Malta costs approximately €1,019 per month, compared to €1,231 in Latvia.
Mortgage rates across the eurozone show significant variation, with borrowers in Latvia facing the highest average rate of 4.18% and those in Malta the lowest at 2.08%, according to European Central Bank data for April 2026. The average rate for the entire eurozone stood at 3.43%.
Southern European countries, including Malta, Bulgaria, Spain, and Portugal, generally offer lower mortgage rates. Conversely, the Baltic states of Latvia, Estonia, and Lithuania, along with Germany, Belgium, and the Netherlands, exhibit rates above the eurozone average.
This disparity has a tangible impact on borrowers. For instance, a €200,000 mortgage over 20 years in Malta would cost approximately €1,019 per month, whereas the same loan in Latvia would amount to about €1,231 monthly, a difference of over €200 each month and nearly €50,800 in additional interest over the loan's life.
The divergence in mortgage pricing is attributed to national banking systems, despite a unified monetary policy from the ECB. Key factors include the prevalence of fixed versus variable rates, with variable rates dominating in the Baltics and Finland, making those borrowers more susceptible to interest rate hikes. Competition among domestic banks and their funding structures also play a crucial role. Malta's consistently low rates are often linked to intense bank competition, ample domestic deposits, and a stable property market.
The data underscores that while monetary policy is centralized, its transmission remains fragmented across member states, meaning location significantly influences the cost of homeownership within the eurozone.