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Mortgage rates in Germany
Fixed-rate mortgages in Germany currently average 3.74% for 10 years and 3.63% for 5 years, down from their 2023 peak. Germany is an overwhelmingly fixed-rate market. Non-residents face a maximum LTV of 60% versus 90% for residents, and closing costs of 10–15% must be paid in cash — they cannot be financed. Here's what you need to know before applying.
Germany mortgage rate history
Germany variable rateECB deposit rate
Current rates by term
| Term | Rate |
|---|---|
| Fixed ≤ 1 year | 4.07% |
| Fixed 1–5 years (Zinsbindung) | 3.63% |
| Fixed 5–10 years (Zinsbindung) Lowest | 3.60% |
| Fixed 10–15+ years (Zinsbindung) | 3.74% |
Euribor (Euro Interbank Offered Rate)As of April 2026
3-month Euribor Resets every 3 months — the most responsive to ECB rate changes. Used by Austrian lenders and some tracker products, which means more frequent payment changes.2.17%
6-month Euribor Resets every 6 months. Common in Portugal and Italy. Balances responsiveness to rate changes with payment stability.2.45%
12-month Euribor Resets once a year — the most stable of the three. The standard index for Spanish variable mortgages and widely used across the Eurozone.2.75%
German variable mortgages reference Euribor, though most borrowers choose fixed Zinsbindung periods.
Mortgage calculator
Above typical non-resident limit. Your LTV is 70%; many lenders cap non-resident buyers at 60%.
Monthly payment€1,117
- Loan amount
- €210,000
- LTV
- 70%
- Total repaid
- €334,977
Indicative only. The rate is pre-filled from current ECB data; actual lender offers depend on your profile.
Expat and non-resident mortgage rules
Residents may borrow up to 90%. Investment properties are capped at 50%.
Passport, last 3 months of payslips, 6 months of bank statements, and tax returns are typically required.
Most lenders require buildings/home insurance. Life insurance is recommended but not always required.
Loan must be repaid before age 70. Maximum debt-to-income ratio: 40%.
Maximum loan-to-value by buyer type
Resident buyer90%
Non-resident / expat60%
Investment property50%
Source: Germany lending practice · Non-resident LTV may vary by lender.
Variable mortgage rates across Europe
Portugal2.80%Spain2.83%Italy3.05%Luxembourg3.07%Austria3.42%France3.65%Netherlands3.93%Germany4.07%Belgium4.12%
Avg new variable mortgage rate · new contracts · green = lower, red = higher
Get help navigating the German mortgage market in English
Germany's mortgage system is complex. A specialist broker can compare offers from Deutsche Bank, ING and others, and explain the Zinsbindung options in plain English.
Find a broker opens in new tabResidential property prices
What's happening to house prices in Germany?
House prices in Germany have risen by 3.0% over the past year. Over the 10-year period shown, prices are up 48%.
ECB Residential Property Price Index · quarterly · index (2015 = 100) · latest data: Q4 2025.
How mortgages work in Germany
The standard German mortgage is the Annuitätendarlehen — a loan with a fixed monthly payment for a defined Zinsbindung (interest-rate lock) period, typically 10–15 years. At the end of the Zinsbindung, the remaining balance is refinanced at prevailing rates. Unlike a UK repayment mortgage, the Annuitätendarlehen combines interest and a Tilgungssatz (repayment rate) in each payment. A Tilgungssatz of at least 2% is recommended — a 1% rate means it takes over 40 years to pay off the loan.
After 10 years of any fixed-rate mortgage, German law (§489 BGB) gives borrowers the right to exit the deal with just 6 months' notice and no early repayment penalty. This is unique in Europe and a genuine advantage.
The critical thing non-EU buyers miss: closing costs of 10–15% cannot be financed. Banks require the full deposit plus all closing costs in cash on completion.
Getting a mortgage as an expat in Germany
There are no legal restrictions on expats or non-residents buying property in Germany. The mortgage market is broadly open to foreigners, though the terms vary significantly depending on whether you live and work in Germany or are buying as a non-resident from abroad.
LTV limits by residency status
Expats living and working in Germany can usually borrow up to 80–90% of the assessed property value, similar to German nationals. Non-residents buying from outside Germany are typically limited to 50–60% LTV, meaning a deposit of 40–50% is commonly required. As with closing costs, the full deposit must be in cash — it cannot be borrowed.
Which banks lend to expats?
Deutsche Bank and Santander are among the major banks offering mortgages to expats in Germany. For English-language service, specialist mortgage brokers including Hypofriend, Interhyp, and Dr. Klein are well-established in the expat market and can compare offers across a wide panel of lenders. ING Germany also offers competitive rates and an accessible online application.
How foreign income is assessed
Expats resident in Germany with German-source income are treated similarly to German nationals. Non-residents or expats earning income from outside Germany will face more scrutiny; some lenders will only consider income from EU countries, and income in non-euro currencies may be discounted. Expect to provide payslips, tax returns, and bank statements covering the last two to three years.
What documents are needed
A standard application for an expat resident in Germany typically requires:
- Valid passport or national ID
- Proof of German address (Meldebescheinigung)
- Last three months' payslips
- Last two years' tax assessments (Steuerbescheid)
- Last three months' bank statements
- Details of any existing credit commitments
- Property details and the notarised purchase agreement (Kaufvertrag) once available
Non-residents will additionally need to provide proof of address and income documentation from their country of residence, with certified German translations.
One honest note
The German mortgage process is thorough. Applications typically take four to eight weeks. For non-residents, the process can take longer due to additional document requirements and more conservative lender policies. Using an English-speaking broker familiar with the expat market can significantly reduce friction.
More information: How to get a mortgage in Germany in 2026
Buying costs beyond the mortgage
Budget 10–15% of the purchase price on top of your deposit — and every euro must be cash.
| Cost | Amount | Notes |
|---|---|---|
| Grunderwerbsteuer | 3.5–6.5% | Varies by Bundesland (Bavaria 3.5% → Schleswig-Holstein 6.5%) |
| Notary fees | 1–2% | Mandatory; represents both parties |
| Land registry | ~0.5% | Grundbuch registration |
| Broker fee (if used) | 3.57% | Can be split buyer/seller; not always applicable |
| Total estimate | 10–15% | All must be in cash |
Frequently asked questions
Can I get a mortgage in Germany as an expat or non-resident?
Yes, but non-residents face stricter terms: maximum LTV of 60% (residents can borrow up to 90%) and banks require proof of income in Germany or stable EU-source employment. Non-EU applicants without German income will find the market more challenging.
More information: Expats in Germany: top 10 questions answered
What is an Annuitätendarlehen and how does it work?
It is the standard German mortgage — a fixed monthly payment (Annuität) for the Zinsbindung period, combining interest and principal repayment. After the fixed period ends, you refinance. The initial repayment rate (Tilgungssatz) determines how quickly you pay down the principal.
What is Zinsbindung and which term should I choose?
Zinsbindung is the fixed-rate period. Common options are 5, 10, 15, and 20 years. After 10 years you can exit any fixed rate with 6 months' notice (§489 BGB) at no cost, making 10-year terms particularly popular.
Why do closing costs have to be paid in cash?
German banks do not finance closing costs. The Grunderwerbsteuer, notary fees, and land registry charges must all be paid separately from your mortgage out of personal funds. This is a fundamental difference from markets like the UK where some costs can be rolled into the loan.
Which banks and brokers help expats with German mortgages?
Deutsche Bank and Santander both offer expat mortgages. English-language brokers specialising in expat clients include Hypofriend, Interhyp, and Dr. Klein — all of whom can compare across a wide panel of German lenders.
More information: How to get a mortgage in Germany in 2026
What is Grunderwerbsteuer and how much is it?
Grunderwerbsteuer is Germany's property transfer tax. Unlike France or Austria, the rate is not national — it is set by each of Germany's 16 federal states (Bundesländer) and ranges from 3.5% in Bavaria to 6.5% in North Rhine-Westphalia and Schleswig-Holstein. Check the rate for the specific state you are buying in.