This German mortgage calculator helps estimate your loan amount and your monthly repayment over the course of the home loan. Transparency brought by our house loan calculator helps check if you can afford taking a loan for your desired property.
This is the most common mortgage type in Germany.
The Annuity loan is a fixed-rate loan. The monthly mortgage rates remain constant over the life of the 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 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. 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 programs offer a lower interest rate, which can lower your mortgage costs.
KfW Residential Property Program 124/134: 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 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 loan completely or with installments of €1,000 or more.
You have 4 main options:
Yes, you can cancel your mortgage with no cost if your fixed term is longer than 10 years.
However, if you want to cancel it before 10 years, you have to pay for outstanding interests as well as administration charges. But there’s still no guarantee that you can cancel your mortgage.
In general, many banks offer a voluntary payment of between 5-10% once a year. Some lenders also allow you to change the principal payment up to five times during the fixed term of the mortgage. You can also pay off your mortgage in a single payment; however, some lenders may charge you a penalty fee for overpaying.
Yes, it is possible. Financing levels of more than 100% (i.e. 105% – 108%) are available on the market for individuals with permanent residency 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.
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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 home loan, 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 purchase fees into account. Purchase fees 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.