Can I buy this home?
Four numbers are enough to start: the price, where the home is, your savings and your income. Everything else is filled in with typical values you can change.
€2,214 a month
Not with these numbers. The home needs a loan of €462,065 at €2,214 a month – it would take 40% of your income, far above what banks accept.
On top of the €450,000 price you pay €52,065 in incidental costs. This assumes 3.75% interest, €2,000 a month of living costs and €350 for running the home – change them on the left if yours differ.
What a bank looks at
Four checks; each one can pass, be tight or fail
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Enough of your own money – tight
Your €100,000 cover the €52,065 of incidental costs, but little of the price. The loan is 91% of the home's value: up to 100% – expect a noticeable surcharge.
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Payment fits your budget – fine
After the payment, €2,000 of living costs and €350 for running the home, €936 a month are left.
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Still affordable when the fixed rate ends – fine
If interest is 2 points higher after 10 years, the payment rises to €2,592. Your budget of €3,150 still covers that.
What would work
With the same savings and income, a home of up to €447,370 passes without a failed check. For this home, €2,935 more savings would do it.- Monthly payment Monthly payment German: Rate / Monatsrate What you pay the bank each month: interest on the loan plus the repayment. It stays the same for the whole fixed-rate period. What you pay the bank every month: interest plus repayment. With an annuity loan it stays the same for the whole fixed-rate period. More about this term
- €2,214
- Loan needed Loan amount German: Darlehensbetrag Price plus incidental costs plus renovation, minus your savings. This is what you ask the bank for. The amount you borrow from the bank – usually the purchase price plus incidental costs, minus the own capital you bring. More about this term
- €462,065
- Incidental costs Incidental purchase costs German: Kaufnebenkosten Costs on top of the price: real estate transfer tax, notary, land registry and possibly a broker. Together 7–15% of the price, depending on the federal state. Banks rarely finance them, so plan to pay them from your own capital. More about this term
- €52,065
- Left over each month Left over each month Your net income minus living costs, other loans, the running costs of the home and the loan payment.
- €936
- Payment if rates rise 2 points Payment if rates rise 2 points When the fixed rate ends, the debt still left is refinanced at 2 percentage points more interest and paid off by the same date as planned. "–" means the loan is repaid before the fixed rate ends.
- €2,592
What the purchase costs Incidental purchase costs German: Kaufnebenkosten Costs on top of the price: real estate transfer tax, notary, land registry and possibly a broker. Together 7–15% of the price, depending on the federal state. Banks rarely finance them, so plan to pay them from your own capital. More about this term
The price and everything on top, each fee with its rate of the price
- Price
- €450,000
- Transfer tax (Grunderwerbsteuer)
- €27,000 6%
- Notary (Notar)
- €6,750 1.5%
- Land registry (Grundbuch)
- €2,250 0.5%
- Broker (Makler)
- €16,065 3.57%
- Renovation
- €60,000
- Total cost
- €562,065
How it is paid How it is paid The larger your own share, the better the interest rate a bank offers.
Shares of the total cost: your savings first, the bank lends the rest
- Your savings
- €100,000 18%
- Loan
- €462,065 82%
- Total cost
- €562,065
Your month as an owner Your month as an owner Your net income, split into the loan payment, living costs, the running costs of the home, other loans and what is left over. Keep something left over for surprises.
How your net income splits once you have bought
- Loan payment
- €2,214 40%
- Living costs
- €2,000 36%
- Running costs of the home
- €350 6%
- Other loans
- €0 0%
- Left over
- €936 17%
- Net income
- €5,500
Your debt over the years Remaining debt German: Restschuld The remaining debt at the end of each year if you keep paying the same amount and the interest rate stays as it is. In reality the rate is renegotiated when the fixed period ends. What you still owe at a given time – most importantly at the end of the fixed-rate period, because that amount has to be refinanced at the rates of that time. More about this term
Paid off after 28 years 2 months if the rate stays the same; €350,149 left when the fixed rate ends after 10 years
When the fixed rate ends after 10 years
You would still owe €350,149. If interest is 2 points higher then (5.8%), paying it off by the same date would cost €2,592 a month – €378 more than today. A longer fixed-rate period or a higher repayment lowers this risk.Next step
Take these numbers into the other calculators
How this is calculated
The price and the federal state give the incidental costs: the state's real estate transfer tax, the notary, the land registry and, if there is one, the broker. Price plus incidental costs plus renovation, minus your savings, is the loan you need.
The monthly payment follows from the interest rate and the initial repayment rate: (interest + repayment) × loan ÷ 12. It stays the same for the whole fixed-rate period.
Then the calculator checks what a German bank checks: whether your savings at least cover the incidental costs, whether all your loan payments stay within the usual share of your net income, whether something is left after the payment, your living costs and the running costs of the home – and whether that still holds if interest is two points higher when the fixed rate ends.
Questions and answers
How much of a down payment do I need to buy a home in Germany?
Banks expect your own money to cover at least the incidental purchase costs – 7 to 15% of the price, depending on the federal state. With another 20% of the price on top you get noticeably better interest rates.
How much of my income can go to the mortgage?
As a rule of thumb German banks accept all loan payments together taking 35 to 40% of your net income. What matters as much is that enough is left after the payment, living costs and the costs of the home.
Why does the check assume interest 2 points higher?
When the fixed-rate period ends, the remaining debt has to be refinanced at whatever rates apply then. Adding two points shows whether your financing would still be affordable.
Guides on this topic
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Buying a flat: the paperwork tells you more
Buying a flat in Germany means joining an owners' association. Which documents to read before you buy, how to spot a healthy association, and what applies when the flat is rented out.
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Buying a house: what to check before you sign
Roof, cellar, heating, pipes, land register and building encumbrances: what matters when you buy a used house in Germany, which duties you inherit as the new owner, and when a surveyor pays off.
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Purchase costs in Germany: what comes on top
Transfer tax, notary, land registry and broker: the extra costs of buying a home in Germany, why they usually come out of your savings, and where you can save.
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