German Mortgage Calculator

Our mortgage calculator helps you find the ideal mortgage for your property. First, enter the purchase price of your property and the details of your savings (equity), the monthly payment, and the fixed interest period in the necessary fields. Equity means your liquid cash or assets that you want to sell to purchase a property. The monthly payment is your budget to repay your credit loan. The fixed interest rate period determines how long the bank guarantees the current conditions.

To be more precise about the purchase fees, we ask for the location (federal state) to determine the property tax rates and the real estate commission (relevant to the total amount of additional purchase costs). The interest rate will be estimated. It's calculated based on the length of the fixed interest period and your available down payment to lower the credit loan. For example, the longer the fixed interest period and the lower the downpayment, the higher the interest rate. The cost of a longer fixed interest rate period needs to be weighed against your expected stay (i.e., the time you plan to hold the property).

By clicking on the 'Calculate' button, you will receive your evaluation, which includes the expected loan amount, the interest rate, and the monthly payment rate. Please note that the loan amount is not equal to the total purchase costs. The additional purchase costs must also be taken into account. You can obtain detailed information by clicking on the (i)-icon next to the corresponding input field (as for all other entries).

You can also click on the “Request offer" button and answer a few questions about your situation (including your citizenship, the usage of your desired property, and your current work situation) to receive an individual mortgage proposal that meets your expectations and conditions, free of charge and without any commitment. You also have the option to schedule a free personal consultation.

We utilise our proprietary Hypofriend recommendation software to find the ideal mortgage for you. It's based on the experience of our co-founder, Dr. Chris Mulder, who worked at the IMF and the World Bank. There, he developed models to help countries manage their debt. Our software integrates modern financial theories with the practical expertise of our mortgage advisors. We keep our recommendation software up to date and regularly review the financing products available, sifting through over 750 lenders and their terms daily. We model and estimate the overall costs. This means we know precisely what financing products are available and can incorporate this knowledge into our recommendation software.

By combining this know-how with the information you provide (e.g., your income) and projected values (e.g., your salary outlook), we generate different scenarios and results. This enables us to illustrate how your mortgage will perform under various scenarios. To better assess your options, you can also try out the affordability calculator.

In addition to the scientifically based operating principles and solid expertise on which our mortgage calculator is based, you benefit from quick and easy sample calculations that give you an initial overview of the expected costs and charges. Our mortgage calculator also calculates the additional purchase costs associated with mortgage financing, as well as the monthly costs you will incur, within seconds. You can also calculate the terms of your financing and the interest rate with just a few clicks.

We provide you with our mortgage calculator free of charge, no matter how many scenarios you want to run through. Registration is not necessary. We recommend trying out several variants to get a better sense of your ideal mortgage. Adjust individual parameters, such as property prices or monthly payments. If you're still not sure whether buying or renting is right for you, you can use our rent-or-buy calculator.

With our mortgage calculator, you can easily calculate your individual mortgage. However, there are a few key points to keep in mind: We are happy to explain the most important aspects that you should consider. For example, it is advisable to plan your mortgage so that you have paid it off by the time you retire, allowing you to enjoy a financially carefree retirement. Furthermore, consider that you will have to pay the additional purchase costs of the mortgage by yourself: they are usually not covered by the loan amount. However, it is possible to take out a separate personal loan for this purpose.

Furthermore, the monthly payment (EMI) should be calculated realistically so that you can service it easily without compromising your usual standard of living. Your monthly loan repayment should be adjusted to the difference between your income and your expenses. Also, consider a safety deposit, which you should ideally always have on hand. This allows you to calculate the approximate monthly financing potential available for your mortgage.

The results of our mortgage calculator are realistic sample calculations. They do not constitute a financing offer or a confirmation of financing. We need to know your financial situation in detail so that we can find the best mortgage for you.

Our mortgage calculator is designed as a first step in your search for suitable mortgage financing, allowing you to be aware of your financial options. In the next step, our mortgage advisors will discuss your financing options with you during a free, non-binding online consultation tailored to your situation, wishes, and needs.

Yes, our mortgage calculator provides a list of all additional costs associated with the purchase. These are sometimes underestimated, so calculating their amount before you take out a mortgage is essential. The additional purchase costs cannot be fixed in general terms. They are comprised of the real estate commission, property transfer tax, land registry fees, and notary fees. While notary fees generally amount to a maximum of 2% of the purchase price in each federal state, real estate commission and land transfer tax vary depending on the German federal state.

There are three main decisions you need to make for your mortgage. The first is the length of the fixed interest rate period, then how quickly you will repay your mortgage loan, and finally, how much equity you want to invest:

1. Fixed interest rate period: To understand how the fixed interest rate is determined and what it entails, we should first examine the basic terms. Mortgage interest rates determine the final cost of your mortgage. You can think of it as a kind of fee that you pay to the bank for providing your mortgage loan. The duration of the fixed interest rate period determines how long you or your bank may not change the conditions for your mortgage loan. Interest rate fixing is possible at 5-year intervals and can cover periods of 5 to 30 years.

2. Repayment period: The previous explanations clarify that the faster you repay your mortgage loan, the lower the total financing costs will be, partly because the remaining debt will also be lower. On the other hand, the slower you repay your loan, the higher your financing costs will be. How quickly you repay your loan depends on the amount of your monthly payment (EMI) and any additional repayments you make (also known as Sondertilgung).

3. Equity and down payment: The more equity or savings you contribute, the lower your loan-to-value ratio and, therefore, the lower the interest rate at which the bank will grant you your mortgage. The loan-to-value (LTV) ratio indicates the proportion of equity to the loaned capital. It is calculated by dividing the loaned capital by the property's value and multiplying the result by 100. The lower the calculated loan-to-value ratio, the less risky a bank considers your mortgage loan to be. This can have a positive influence on the interest rate.

   Banks usually lower the interest rate by 5% steps of the loan-to-value ratio. In other words, a higher down payment results in a lower loan-to-value ratio and a lower interest rate, and vice versa; a lower down payment leads to a higher interest rate due to a higher loan-to-value ratio.

Generally, your savings should cover the additional costs incurred for the purchase. Depending on the federal state, this is between 9% and 12% of the property's purchase price. The amount of equity required, therefore, cannot be determined in general terms.

Under certain conditions, it is possible to finance a property without equity (100% financing). These include, for example, an excellent credit rating, a very high income, and an excellent location for the property. However, the bank will charge significantly higher interest rates. In rare cases, the bank may also provide financing for additional costs (up to 110 per cent financing), usually in the form of a personal loan, as mentioned above. If you want to know what your budget is, you can read more about how much house you can afford in our related article. That article also includes a calculator with which you can calculate, how much house you really can afford.d

It is essential to understand how the loan amount is determined. The purchase price is not the same as the loan amount. This is because equity is typically contributed to the mortgage, and the amount varies from case to case. The loan amount is the amount you borrow from the bank to buy the property, regardless of your savings.

This German mortgage calculator is designed to help you determine the estimated amount you can get from over 750 mortgage lenders in Germany. However, German banks have different guidelines for rating the creditworthiness of mortgage applicants. To find the best mortgage for you, we require additional information about your financial situation and plans. With this information, our financing experts can explain your possible options in detail and provide a free personalized mortgage recommendation. Book your free consultation.

The annuity mortgage is by far the most popular form of mortgage loan and deserves special attention. An annuity is a loan with a monthly repayment (EMI) that remains constant in amount. It means that you pay the same sum every month for the fixed interest rate period of your mortgage.

The annuity payment consists of both interest and repayment rates. The combination of interest and repayment rates varies slightly from month to month. This is because each repayment reduces the remaining debt. With a fixed interest rate and a decreasing balance of remaining debt, the proportion of interest over capital payments decreases every month. In contrast, the proportion of capital over interest payments increases slightly, while your monthly payment remains constant. This continues until the capital is fully repaid. The fact that you see your loan to be repaid every month makes this type of financing so popular.

It is determined by adding the interest rate to the repayment rate and applying the result to the loan amount using the percentage method. The annual amount is then calculated (also known as the annuity) and divided by 12 months to determine the monthly payment. The result is your monthly payment rate. We have already explained what the interest rate is (it is calculated automatically in the Hypofriend mortgage calculator). But what is the repayment rate? Repayment generally means paying off the mortgage loan you have taken out. The repayment rate is the percentage of your loan amount that you repay to the bank each year. On average, the starting repayment rate is 3% and is paid in several payments (repayment rates).

Additionally, it is essential to note that the interest rate is recalculated monthly based on the remaining debt. This means that the faster you repay your loan, the lower your total financing costs will be (because the lower the remaining debt and the interest rate). However, you should also bear in mind that a higher repayment rate will result in a higher monthly payment, i.e., a higher financial cost each month. You should, therefore, be careful not to go as far as your financial limits. If you want to pay off the remaining debt more quickly (for example, because you have received an inheritance), you have the option of making an unscheduled repayment (Sondertilgung).

Sondertilgung refers to making extra, unscheduled payments, regardless of your monthly payment schedule. This allows you to reduce your remaining debt or repay your mortgage loan more quickly, thereby spending less on interest rates and financing. As a rule, several unscheduled repayments are also possible within one financing agreement: most banks allow an unscheduled repayment of 5% to a maximum of 10% of the loan amount (per year).

Additional purchase costs generally include the following expenses:

1. Property transfer tax: This is payable on every property purchase and must be paid immediately after the contract is signed. Depending on the federal state, it amounts to between 3.5% and 6.5% of the purchase price. The national average is 5.44%.

2. Notary and land register fees: The expenses for the notary and land registry amount to around 2% of the loan sum.

3. Real estate commission (optional): Whether and how high the commission for estate agents differs from state to state, as well. The differences relate not only to the amount of these expenses but also to whether the property buyer or seller should pay them. A maximum of 3.57 % of the purchase price is charged for the real estate commission. By the way, the real estate commission is generally waived for new-build properties.

You must pay the interest rate each month, along with your monthly payment. It is a percentage of the remaining debt. Don't worry: we'll explain what this means right away! Quite simply, the remaining debt can be understood as the amount you still owe the bank as part of your mortgage loan. Strictly speaking, the remaining debt refers to the remaining amount you have to pay back to the bank after the fixed interest period for your loan has expired. It is, therefore, critical that you understand what a fixed interest rate means.

In addition, a short fixed interest rate (with a lower interest rate) can mean that your remaining debt is higher, and you will ultimately need higher refinancing. Refinancing involves obtaining a new loan, which replaces the existing financing. It would be best if you could refinance to pay off the remaining debt. Furthermore, keep an eye on the general development of mortgage interest rates. If they tend to be low but are on the rise, it is more worthwhile to take out long-term financing to benefit from a relatively low borrowing rate for an extended period. If borrowing rates are relatively high but trending downwards, a shorter fixed interest rate is advisable, allowing you to secure low mortgage rates for refinancing. So think carefully about which option is best for you and seek advice from an expert.

Note: The longer the fixed interest period, the lower the remaining debt and the interest rate!