Mortgage in Germany 2026
Dr. Klein currently quotes a best-available rate of 3.71 percent APR for a ten-year fixed period and 3.97 percent for 15 years (as of 17 August 2026). Those are third-party market data, not offers from us. Foreigners can get a German mortgage, and what you actually pay depends on your equity, loan-to-value and credit standing.
Compare mortgage ratesKey Takeaways
- Best-available rates sit at 3.71 percent APR for ten years and 3.97 percent for 15 years (Dr. Klein, as of 17 August 2026). Interhyp shows 3.82 to 4.19 percent for ten years depending on loan-to-value.
- The short end of the curve is inverted: five years costs 3.83 percent, more than ten years. A shorter fix is not the cheaper choice right now.
- Budget at least 20 percent equity plus closing costs of roughly 5.5 to 12.5 percent, depending on the state and whether an estate agent is involved. Banks generally will not finance closing costs.
- EU citizens have broadly the same access as German nationals. Non-EU residents need a valid residence permit and should expect banks to ask for more equity and documentation when German credit history is thin.
Current German mortgage rates by fixed-rate period
The table shows best-available conditions, which is the bottom edge of the market rather than a typical outcome. The figures come from Dr. Klein and assume a 350,000 euro loan against a 480,000 euro property, so about 73 percent loan-to-value, with 2 percent initial repayment.
| Fixed period | Nominal rate | APR |
|---|---|---|
| 5 years | 3.72% | 3.83% |
| 10 years | 3.63% | 3.71% |
| 15 years | 3.88% | 3.97% |
| 20 years | 4.05% | 4.15% |
| 30 years | 4.29% | 4.39% |
Source: Dr. Klein, as of 17 August 2026. These are best-available conditions from third-party market data, not offers from us and not an average. Your own rate depends on credit standing, equity, loan-to-value and the property, and is usually higher.
Why loan-to-value moves the rate so much
The more equity you put in, the lower the loan-to-value ratio and the cheaper the money. Interhyp publishes the spread openly (as of 16 August 2026):
| Fixed period | below 70% | 80% | above 90% |
|---|---|---|---|
| 10 years | 3.82% | 3.88% | 4.19% |
| 15 years | 4.05% | 4.15% | 4.46% |
| 20 years | 4.15% | 4.27% | 4.58% |
Source: Interhyp, as of 16 August 2026.
What a German mortgage costs per month
German annuity loans work like this: loan amount times nominal rate plus repayment rate, divided by twelve. With the best-available nominal rate of 3.63 percent and 2 percent initial repayment, the starting instalments look like this.
| Loan amount | Monthly instalment | Interest share, year 1 | APR |
|---|---|---|---|
| 150,000 euros | about 704 euros | about 454 euros | 3.71% |
| 300,000 euros | about 1,408 euros | about 908 euros | 3.71% |
| 400,000 euros | about 1,877 euros | about 1,210 euros | 3.71% |
| 700,000 euros | about 3,284 euros | about 2,118 euros | 3.71% |
Worked examples based on the best-available rate from Dr. Klein: fixed nominal rate 3.63 percent p.a., annual percentage rate 3.71 percent p.a., ten-year fixed period, 2 percent initial repayment, as of 17 August 2026. Not offers and not a commitment. Always compare the APR rather than the nominal rate, because only the APR includes the financing costs. The instalment stays level during the fixed period while the interest share falls and the repayment share rises.
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Free and non-binding. The rate enquiry does not affect your SCHUFA score.
Getting a mortgage in Germany as a foreigner
Yes, foreigners can buy property in Germany and finance it here. There is no citizenship requirement in the law. What differs is how much documentation banks ask for and how much equity they want to see, and that is set by each bank rather than by a general rule.
EU citizens
- Broadly the same access as German nationals
- Stable income in Germany is the main hurdle
- Around 20 percent equity is the usual starting point
Non-EU residents
- A valid residence permit is normally required
- Expect more equity to be requested, the amount varies by bank
- A German bank account and some SCHUFA history help
New here and without a SCHUFA record yet? Some banks work with newcomers, but they will want more paperwork. A personal loan comparison can help you build a credit history over time. If the remaining term on an existing loan is running out, look at property loan options before the fixed period ends.
Closing costs come out of your own pocket
On top of the purchase price you pay property transfer tax, notary and land registry fees, and possibly a buyer's share of the estate agent commission. Together that is roughly 5.5 to 12.5 percent of the price, depending on the federal state and whether an agent is involved. Most banks will not include these costs in the mortgage.
Property transfer tax by federal state
Property transfer tax is the largest single item and each state sets its own rate, which is why the same purchase price costs noticeably less in Bavaria than in North Rhine-Westphalia. Bremen raised its rate from 5.0 to 5.5 percent on 1 July 2025.
| Federal state | Rate | On 350,000 euros |
|---|---|---|
| Bavaria | 3.5% | 12,250 euros |
| Baden-Württemberg | 5.0% | 17,500 euros |
| Lower Saxony | 5.0% | 17,500 euros |
| Rhineland-Palatinate | 5.0% | 17,500 euros |
| Saxony-Anhalt | 5.0% | 17,500 euros |
| Thuringia | 5.0% | 17,500 euros |
| Bremen | 5.5% | 19,250 euros |
| Hamburg | 5.5% | 19,250 euros |
| Saxony | 5.5% | 19,250 euros |
| Berlin | 6.0% | 21,000 euros |
| Hesse | 6.0% | 21,000 euros |
| Mecklenburg-Vorpommern | 6.0% | 21,000 euros |
| Brandenburg | 6.5% | 22,750 euros |
| North Rhine-Westphalia | 6.5% | 22,750 euros |
| Saarland | 6.5% | 22,750 euros |
| Schleswig-Holstein | 6.5% | 22,750 euros |
Rates are set by state law and change when a state passes new legislation. Bremen's increase on 1 July 2025 is documented by the city (service.bremen.de). Confirm the rate that applies to you with the local tax office or your notary before signing.
How long should you fix the rate?
The usual rule is that a shorter fix is cheaper and a longer fix is safer. Right now the first half does not hold. Five years costs 3.83 percent APR while ten years costs 3.71 percent (Dr. Klein, as of 17 August 2026), so a short fix currently costs more and leaves you with the refinancing risk as well.
Long fix, 15 to 20 years
- The instalment is locked for the whole period
- No refinancing risk when rates move
- You can still exit after ten years under section 489 (1) 2 BGB
- Currently 3.97 percent for 15 and 4.15 percent for 20 years
Short fix, 5 to 10 years
- Ten years is the cheapest tier at 3.71 percent
- Five years costs 3.83 percent, so more rather than less
- You carry the risk when the fixed period ends
- Worth it if a sale or refinance is already on the horizon
German law gives borrowers a statutory way out, which is why a long fix is rarely a trap: under section 489 paragraph 1 number 2 of the Civil Code you can terminate a fixed-rate loan ten years after full disbursement with six months' notice. The clock starts at disbursement, not at signature, and the notice period is added on top.
KfW funding you can combine with your mortgage
KfW is the German state development bank. Its low-interest loans sit alongside a normal mortgage and reduce your monthly load. The amounts below are ceilings and each comes with conditions.
| Programme | Maximum | Condition |
|---|---|---|
| 124 Home ownership | 100,000 euros | Buying or building owner-occupied property |
| 297 and 298 Climate-friendly new build | up to 150,000 euros | Depends on energy efficiency and the QNG certificate |
| 300 Home ownership for families | up to 270,000 euros | Income ceiling and number of children, top tier needs QNG |
The income ceiling on programme 300 is easy to miss
Funding is capped at 90,000 euros taxable annual household income with one child, plus 10,000 euros for each additional child. The 270,000 euro figure is also the top tier and requires the QNG certificate together with four or more children; the base tier is 170,000 euros.
You apply through your own bank rather than directly with KfW. Current programme terms are published on kfw.de.
How the comparison works
Work out what you actually need
Purchase price, equity, closing costs. Add your state's property transfer tax and around 2 percent for notary and land registry, plus the buyer's agent share if there is one. Only then do you know how large the loan has to be.
Compare several banks at once
Look at the APR rather than the nominal rate, because only the APR includes the financing costs. Ask about free overpayments and about how freely you can change the repayment rate later.
Submit your documents
Usually recent proof of income, documents on the property such as the listing and floor plan, evidence of your equity, and a SCHUFA self-disclosure. Self-employed applicants are typically asked for annual accounts and tax assessments. The exact list is set by each bank.
Common questions about German mortgages
Sources
- Dr. Klein: current German mortgage rates, best available conditions by fixed-rate period, as of 17 August 2026
- Interhyp: rate table by loan-to-value ratio, as of 16 August 2026
- KfW: funding products for new builds, maximum loan amounts for programmes 124, 296, 297, 298 and 300
- KfW: Home Ownership for Families (300), maximum loan amounts and income limits
- Section 489 German Civil Code (BGB), borrower right of termination, Federal Ministry of Justice
- BaFin: consumer information on property finance
The comparison above is free and non-binding. You will see within a few minutes which conditions are realistic for your situation.
Compare mortgage ratescheckalle.de is an independent comparison site and is itself neither a lender nor a credit intermediary. We make no credit offers of our own. The comparison tool forwards your enquiry to the intermediary who provides the partner banks' conditions. We receive a commission on completion at no cost to you, and this does not affect the conditions shown.
Every interest rate on this page is published third-party market data with a source and a date. It is not an offer and not a commitment, and it reflects best-available conditions rather than an average. Binding conditions, including all legally required disclosures, come only from the lender in a concrete offer.
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