This is the most common mortgage type in Germany.

The annuity loan is a fixed-rate home loan. The monthly mortgage payment amount remains constant over the life of the house loan. In the beginning, the interest portion of the installment is high. At the same time, the repayment portion of the installment is low. As the borrower repays the loan, the interest portion decreases and the house loan repayment portion increases. This house loan calculator shows you what your mortgage loan payment structure looks like over the entire fixed term.

A borrower repays a mortgage loan 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. The borrower has the option of paying up to 5% of the loan annually.

KfW bank offers different home loan concessions for those who want to buy or build a home as well as homeowners who want to make an older residential building more energy-efficient. In many cases, KfW’s home loan programs offer a lower interest rate in Germany, which can lower your mortgage costs.

KfW Residential Property Program 124: KfW promotes the purchase or construction of owner-occupied homes or apartments. You can borrow up to €50,000 at an interest rate from 1%. You can combine this loan with other KfW products. You can also use the fund for land acquisition and construction costs or cover ancillary costs such as notary fees and purchase of cooperative shares to obtain membership of a housing cooperative.

KfW Energy Efficient Program 153: KfW promotes home renovation projects that enhance energy efficiency. You can borrow at a discount rate and receive a subsidy of up to €27,500 to help repay the house loan. And if your home is refurbished as a “KfW Efficient House”, you can apply for a grant up to €100,000. KfW allows borrowers to repay the home loan completely or with installments of €1,000 or more. If you purchase a new building, it’s likely that you would be qualified for this program too. Neubau kompass is a real estate listing website that exclusively offers newly built apartments or houses in Germany.

Yes, it is possible. Financing levels of more than 100% (i.e. 105% – 108%) are available on the market for individuals with permanent residency in Germany to cover ancillary costs. This is an especially attractive option for young families with high income. They often do not have adequate long-term home savings but they urgently need housing. However, if you are a limited resident, such as EU Blue Card holder, you can only get a maximum of 100% of financing and you would need to cover the additional closing costs with your equity.

However, there are a few things you should be aware of:

1. Relatively high interest rate: Given that the potential for credit risk is greater, such loans usually have a higher interest rate of 0.2% to 0.4% than equity backed real estate financing.
2. Lender usually demands higher repayments.
3. Take additional costs into account. For instance, buyers are required to purchase residual debt insurance to cover unemployment, illness or death appropriate.

Even if you haven’t found a property, you can still request a mortgage pre-approval certificate. However, you can only get pre-approved if you have completed our mortgage application. A German mortgage calculator only gives you an approximate figure of how much you can afford. The pre-approval certificate helps assure your seller that you can afford to purchase a property up to a defined purchase price. It will also help you stand out from other potential buyers on house viewings, thus, speeding up your closing time after you’ve identified a home you’d like to buy.

If you’d like to get a mortgage pre-approval, please submit your mortgage application online and provide a few documents – copy of ID, current bank statement, and payslips of last three months. Once the request is submitted and approved, you will receive a pre-approval certificate within 24 hours.

Since every situation is completely unique, the time it takes to secure a home loan varies from person to person. Generally, it will take between 3 days to 4 weeks from starting the application process to receiving the actual mortgage confirmation, provided that your application process goes smoothly. The actual time it takes depends on your lender and your specific situation. If you need a mortgage in the shortest time possible, our mortgage advisors will take that into account when they choose a lender for you.