LoanLink’s German mortgage calculator is designed to take the mystery out of your home buying experience, helping you estimate your loan amount and monthly repayment over the course of the home loan.
First off, you can be rest assured that this house loan calculator can efficiently help you work out whether and how much home loan you can afford. Not only can you get a quick answer within seconds after plugging in a few numbers, but you can also receive the most comprehensive overview of how your mortgage plan would look like compared to other home loan calculator out there.
Here's how the home loan calculator works:
1. Enter a few numbers regarding your mortgage financing plan, including the purchase price, down payment, years of fixed term, real estate agent fees.
2. Give some information regarding the property, namely the location and property type
3. Tell us how fast you want to pay back the home loan and whether you want to make voluntary unscheduled payment
The result will give you several important numbers: your total monthly cost, mortgage interest rates, total closing costs, remaining home loan after fixed term, approximate time to pay off the entire house loan etc. You can also see the break down of the monthly costs in detail, for example. You can see how much principal and interest payment you would need to pay over the course of the fixed term of the home loan.
This home loan calculator is designed to help you figure out the approximate amount of house loan you could get with over 400 mortgage lenders in Germany. However, German banks have different policies in assessing the borrowers' eligibility. In order to apply for a mortgage, it is important to fill out our mortgage questionnaire, since we need more detailed information about your personal and financial situation to work out which lender can help, and most importantly how we can design the right home loan plan with the lowest mortgage rate that best fits you.
When you sell the property in Germany before 10 years, you will need to pay a penalty fee which is the cumulative interest payments due for the rest of the mortgage. For example, if the period is fixed for 10 years and you sell after 5 years of ownership, you will owe the bank the remaining interest payments due for the fixed rate period. After 10 years, it is not necessary to pay any penalty fees. For instance, if you want to buy property in Berlin with a 10-year fixed mortgage and sell it 5 years later, you would need to pay for the outstanding interest payment of 5 years.
A capital gains tax is a fee that you pay to the German government when you sell your home for more than what you paid.
Property owners that sell their property within 10 years are subject to capital gains tax. These capital gains are included in the annual income of the property owner in the same year the property was sold. For example, if a property owner sells his property after nine years for a profit of € 200,000, this amount will be subject to a tax rate of 42%.
But if you buy property in Germany and sell it after 10 years, then this profit would not be subject to any tax.
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.
Our mortgage experts received your information and are happy to answer any question!
Germany is an unusual country when it comes to home financing, as German banks ask for an in-depth analysis from both the seller and new property owner. The banks also require certain documents on your personal and financial situation (please see the list of required documents here). Often times, different banks also require different documents from mortgage applicants. To find out how much you can borrow, you can also use the LoanLink’s borrowing power calculator.
The most common type of mortgage (Baufinanzierung) in Germany is the annuity loan (Annuitätendarlehen). With this type of home loan, mortgage rates stay constant over the life of the mortgage, and you are responsible for repaying the value of the loan with the accumulated interest rate. In the beginning, the interest portion of the installment is high and the principal repayment portion of the installment is low. As time goes by, the interest payment decreases and the principal repayment increases. In most cases, the loan has a fixed interest rate for 5 to 30 years. At the end of the fixed term, you need to refinance with a new mortgage at new market rates.
In this article, you will find a sample annuity mortgage calculation for a non-German resident who decided to partially finance his property with a mortgage in Germany.
Using a mortgage calculator, John learns that his personal background, income and job situation allow him to qualify for up to 60% of financing. (Note: the actual percentage of financing available varies case-by-case. In some cases, 60%-80% financing is possible in Germany.) The mortgage calculation breaks down into three separate sections: (1) calculation of the financing need, (2) detailed breakdown of the costs and term of mortgage, and (3) an amortization table of future monthly rates.
First, when calculating the total purchase price, John needs to take the closing costs into account. Closing costs usually include: notary and land register fees, stamp duty (real estate tax) and real estate agent fees. The exact amount of the purchase fees varies among German cities. Normally, fees are roughly 10-15% of the property purchase price. In John’s case, the purchase fees are 62,775€ (assuming the total purchase fees are at 13.95% of the property price,) and the maximum total purchase costs are 512,775€.
Assuming that John wants to put in 250,525€ as down payment, he needs a mortgage of 260,000€. This puts his total financing need at 58% of the property purchase price (260,000€/450,000€). Given that John is qualified for 60% of financing, the loan he needs fits within the amount of financing he can afford borrowing.
|Purchase price of the property||450,000 €|
|Notary and land register fee||2.00%||9,000 €|
|Stamp duty (Real estate tax)||6.00%||27,000 €|
|Real estate agent fee||5.95%||26,775 €|
|Total costs||510,525 €|
|Financing need (mortgage)||58%||260,000 €|
LoanLink’s mortgage calculator calculates the amount of monthly repayment based on how fast you want to pay off your loan, the loan amount and the loan term of your choice.
In John’s case, his annuity loan has a fixed term of 10 years, meaning the mortgage interest rate is fixed for the entire term of the home loan. His monthly rate is 964€ and will be the same throughout the life of the mortgage.
You can use the mortgage repayment calculator to model different scenarios and clearly visualize outcomes by adjusting different variables in the calculator, such as changing your fixed term of interest rate, down payment, real estate agent fees etc.
The main benefit of making unscheduled payments (Sondertilgungsmöglichkeiten) is that it allows you to pay off your mortgage faster. At the same time, the interest on your remaining debt also declines. The possibility of the amount and frequency of voluntary repayment are specified in the loan agreement.
John can make an unscheduled repayment to the loan of up to 5% every year. If he doesn’t make any unscheduled payments, after 10 years his paid debt will amount to 95,423 € and the remaining debt at the end of the term will be 164,577€. And it would take 25 years and 5 months to completely pay off the mortgage.
But if John decides to make an unscheduled payment of 5,000€ every year, after 10 years, his paid debt will amount to 147,625 € and the remaining debt at the end of the term will be 112,375€. And it would take 17 years and 2 months to completely pay off the mortgage.
Amortization refers to the gradual reduction of mortgage over a given time period until you fully repay your mortgage. An amortization table shows the breakdown of monthly interest and principal repayment and the home loan balance over the course of the mortgage. The monthly rate remains constant over the course of the home loan. At the same time, the interest portion decreases and the principal payment increases.
To better understand the mortgage amortization, please look at the table below. The table illustrates the monthly and yearly payments until the end of the fixed payment period.
|Period||Rate||Thereof interest payment||Thereof principal||Remainder of debt|
|Oct 2018||964 €||206 €||758 €||260,000 €|
|Nov 2018||964 €||205 €||759 €||259,242 €|
|Dec 2018||964 €||205 €||759 €||258,483 €|
|Jan 2019||964 €||204 €||760 €||257,723 €|
|Feb 2019||964 €||203 €||761 €||256,963 €|
|Mar 2019||964 €||203 €||761 €||256,202 €|
|Apr 2019||964 €||202 €||762 €||255,441 €|
|May 2019||964 €||202 €||762 €||254,679 €|
|Jun 2019||964 €||201 €||763 €||253,916 €|
|Jul 2019||964 €||200 €||764 €||253,153 €|
|Aug 2019||964 €||200 €||764 €||252,390 €|
|Sep 2019||964 €||199 €||765 €||251,625 €|
|Oct 2019||964 €||199 €||765 €||250,860 €|
|2020||11568 €||2,336 €||9,234 €||241,633 €|
|2021||11568 €||2,248 €||9,322 €||232,318 €|
|2022||11568 €||2,158 €||9,411 €||222,915 €|
|2023||11568 €||2,069 €||9,501 €||213,421 €|
|2024||11568 €||1,978 €||9,592 €||203,837 €|
|2025||11568 €||1,887 €||9,683 €||194,161 €|
|2026||11568 €||1,784 €||9,776 €||184,393 €|
|2027||11568 €||1,700 €||9,868 €||174,532 €|
|Oct 2028||964 €||130 €||834 €||164,577 €|
At the end of the period, John has a remaining debt of 164,577 €. He can either fully repay the remainder of debt after 10 years (October 2028) or he must refinance with a new mortgage at a new market mortgage rate.