Leverage mortgage experts and independent mortgage comparison calculators to finance a property in Germany
As the only independent German mortgage calculator for Expats, Blue Card holders and foreign investors, we compare offers from all relevant financial institutions.
Our experts determine the perfect mortgage, regardless of whether you are buying to live in, to invest, or you are looking to refinance.
How to use our mortgage calculator?
Our mortgage calculator can help you quickly estimate the monthly mortgage repayments for your new home, including taxes, insurance and fees. Here’s the information you’ll need to understand the mortgage calculator.
Mortgage Rate
The monthly payment amount that is composed of the interest and principal payment. It is the amount that you will need to pay each month to secure the mortgage.
Interest Payment
The amount charged as a % of principal to borrow the funds. It can be fixed for 5-30 years. The total cost of the mortgage is the cumulative amount of interest paid. The rate will vary based on credit, down payment, and duration.
Principal Payment
The money going to pay down the loan balance each month. As time goes by, you will pay a higher amount toward principal and less to interest.
Down Payment
The initial amount of money paid, outside of the mortgage, to the property’s seller. It lowers the amount of interest paid over the course of the home loan, the monthly repayments and provides lenders with a degree of security.
Purchase Fees
They are the transaction costs depending on the location of the property, including notary costs, real estate agent fees and tax. They range between 10%-15% of the purchase price of the property.
Annuity Mortgage
This is the most common type of mortgage in Germany with a constant payment each month. As you repay the load, the interest portion decreases and the repayment portion increases. You can pay up to 5% of the loan balance annually.
How to use our mortgage calculator?
How much can I borrow?
Buying a property is one of the most important decisions of your life, it’s natural that you’ve got a few questions. Do banks offer more or less financing depending on my residency status? How much will the bank lend me based on my income and down payment? What lenders does LoanLink24 work with? Does Germany have specific rules in place that are unique from other places?
To alleviate some of your concerns, we have developed a list of answers to your most pressing questions regarding home loan, packed with advices for first-time home buyers and investors alike.
And make sure to use our range of calculators to compare loan rates, repayment and fees calculations.
The maximum amount you can borrow in Germany depends on your residency status.
Live and work in Germany: up to 100% of property value is possible. However, 50 to 60% debt funding will get you the best interest rates
Live and work abroad: up to 70% - 80% of the property value is possible
With our mortgage calculator, we can give you a rough idea of how much you can borrow. Head over to our mortgage page to find out what you can expect to borrow in Germany.
Why buy in Germany now?
A robust housing market and overall low interest rates make mortgage payments attractive now. Germany continues to establish its position as one of Europe’s and the world’s safe havens.
Mortgage 101 - all you need to know
The most common mortgage type in Germany is the Annuity loan.
The Annuity loan is a fixed-rate loan. The monthly rates remain constant over the life of the loan. In the beginning, the interest portion of the instalment is high. At the same time, the repayment portion of the instalment is low. As the borrower repays the loan, the interest portion decreases and the loan repayment portion increases. A borrower repays a mortgage over a fixed term of 5 to 30 years.
In general, 10 years is the most common fixed term. Borrowers usually repay the loan on a scale from 2% to 10% per year Likewise, the borrower has the option of paying up to 5% of the loan annually.
Interest can be fixed from 3-40 years.
KfW bank offers different loan concessions for those who want to buy or build a home for themselves to live in as well as for everyone who is investing to make an older residential building more energy-efficient. In many cases KfW bank can provide a lower rate of interest and have the benefit of lowering your mortgage costs.
Depending on the programme, between 50,000 and 100,000 EUR can be financed with individual KfW programmes.
- Continue mortgage with Existing Bank
- Switch and refinance with new bank
- Payoff outstanding debt
- Increase the loan amount
- Ability to pay your monthly payment throughout the life of the mortgage
- For Employees, your 3 most recent pay slips
- For Entrepreneurs, annual earnings for the past 3 years
- Your household budget
- Ability to pay the fees and closing costs
LTV, Fixed Interest Period, Type of Use, Income Type, SCHUFA, Repayment Rate
- It generally will take a few weeks for you to start the application process and receive the actual confirmation of the mortgage loan.
- The actual time it takes depends on your lender and your specific situation.
- You can save time by obtaining a mortgage in principle with the lender you plan to submit the application with.
- The MIP is an assurance from a lender that they would be willing to lend you a specific amount of money provided the information you gave them is true.
- Obtaining a mortgage in principle will only take a few hours of your time and can save you additional time down the road.
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