Germany Mortgage Calculator
Calculate German home loan payments (Baufinanzierung). Understand Zinsbindung, Tilgung, and annual nebenkosten (Grunderwerbsteuer, Notar, Makler).
Loan Details
Results
Monthly Payment
€2,035
Principal
€400,000
Total Interest
€210,445
Total Paid
€610,445
For estimation only. Not professional financial, tax, or legal advice. Consult a qualified advisor before making decisions. Full disclaimer.
How a German mortgage actually works
A German mortgage (Baufinanzierung) is different from what you may have seen elsewhere. You lock the interest rate for a set number of years, not for the full loan. That locked period is called the Zinsbindung. After it ends, you sign a new deal at whatever rate banks offer then.
In 2026 the common rates look like this. A 10-year fix: 3.3% to 3.8%. A 15-year fix: 3.5% to 4.0%. A 20-year fix: 3.8% to 4.3%. If your home meets KfW green-building rules (a state subsidy for energy-efficient houses), the bank can knock 0.3% to 0.8% off.
Tilgung: the speed at which you pay the loan down
Tilgung is the yearly share of your payment that goes to the loan balance, not to interest. Most Germans start with 2% or 3% Tilgung. As the balance shrinks, more of each payment pays down the loan, so the effect snowballs.
A higher Tilgung of 4% or 5% makes payments bigger but clears the loan far sooner. The simple rule: try to be debt-free before you retire. Most loans also let you pay an extra lump sum each year (called Sondertilgung) of up to 5% to 10% of the original loan, with no penalty.
Nebenkosten: the hidden 10–12%
Banks only lend against the house price. You must pay the closing costs from your own pocket.
- Grunderwerbsteuer (property transfer tax) — 3.5% to 6.5%. Bayern is 3.5%. NRW and Brandenburg are 6.5%.
- Notar and Grundbuch (notary and land registry) — 1.5% to 2%.
- Makler (estate agent fee) — 3.57%, split 50/50 with the seller by law since 2020.
Real example. You buy a €500,000 house. You need about €50,000 to €60,000 in cash on top of your deposit, just for Nebenkosten.
How much house can you afford?
Most German banks want to see 20% to 30% of the price as your own money (Eigenkapital). They also cap the monthly payment at 35% to 40% of your net household pay.
You can get a 100% loan (no deposit), but the rate is 0.4% to 0.8% higher. You also need a top Schufa score (your German credit rating).
Always compare offers. Brokers like Interhyp, Dr. Klein, and Baufi24 check 400+ banks at once. A difference of just 0.3% on a €400,000 loan saves roughly €25,000 to €40,000 over 30 years.
Plan around the mortgage
A mortgage is the biggest monthly bill most people ever sign up for. Stress-test it against your net income after tax. You should also take out Risikolebensversicherung (cheap term life insurance) so the loan is covered if you die. If you might stop working due to illness, add Berufsunfähigkeitsversicherung (income protection) as well.
Common questions about Mortgage
Current German mortgage rates?+
2026 Zinsbindung rates: 10-year fix 3.3-3.8%, 15-year fix 3.5-4.0%, 20-year fix 3.8-4.3%. Green/KfW subsidised programmes (energy-efficient new builds, renovations) shave 30-80bps. ECB deposit rate sets the floor around 2.75%. Rate shopping is essential — brokers like Interhyp and Dr. Klein compare 400+ banks.
What is Tilgung?+
Tilgung = principal repayment %. German mortgages are typically structured as an annuity: the initial Tilgung (commonly 2-3%) determines how fast you pay down. Higher Tilgung (4-5%) = shorter payback but bigger monthly rate. After the Zinsbindung expires (e.g. 10 years), you refinance (Anschlussfinanzierung) at whatever rate is available then.
What are the closing costs (Nebenkosten)?+
Grunderwerbsteuer 3.5-6.5% (varies by Bundesland — Bayern 3.5%, NRW/Brandenburg 6.5%). Notar + Grundbuch 1.5-2%. Maklerprovision 3.57% each side (since 2020 split 50/50 by law). Total 10-12% on top of purchase price. Budget accordingly — only the price itself is financed; Nebenkosten usually need cash.
How much house can I afford?+
Banks typically require 20-30% equity (price + Nebenkosten). Monthly rate should not exceed 35-40% of net household income. Some lenders offer 100% financing (no equity) but demand excellent credit and add 0.4-0.8% to rate. Your Schufa score matters — a clean file makes all the difference.
What is Sondertilgung and how do I use it?+
Sondertilgung allows you to make extra principal repayments outside the normal annuity — typically 5%-10% of the original loan amount per year, agreed at signing (some banks charge 0.05-0.10% higher rate for this flexibility). Make these in December to maximise interest savings, or use year-end bonuses. After 10 years of fixed tenure, German law (§489 BGB) lets you repay the loan fully with 6 months' notice and no break fee — powerful for refinancing to lower rates.
Can I claim mortgage interest against tax?+
Only for investment properties (rental/buy-to-let). Interest, property management, depreciation (AfA 2%/year for new, 2.5% for pre-1925, 3% for new 2023+ residential), repairs, and renovations are deductible against rental income in your Anlage V. For owner-occupied primary residences, interest is NOT deductible — a key difference from the US or Netherlands. Some cantons allow limited deductions through Wohnriester or Baukindergeld programmes (now wound down); plan accordingly.