8 Ways to Increase How Much House You Can Afford in Germany

Find out how you can increase your affordability in times of high property prices and skyrocketing interest rates, and thus afford your German dream home.

Nick Mulder

Nick is Co-founder and CEO of Hypofriend

Published on Mar 10, 2023 Published on Mar 10, 2023 . Updated 8 months ago

Nick is Co-founder and CEO of Hypofriend

In the last six months, we experienced the fastest increase in interest rates Germany has ever seen. As a result, average affordability for prospective buyers has dropped significantly. Although property prices have fallen slightly in most areas in Germany, they have not fallen enough to compensate for the high interest rates. So what should you do? Give up the dream of owning a home? You don't have to, because there are ways to afford more. Here are some ideas for people who want to buy their first home and are struggling with affordability:

Buy a property with a second person
Buy a fixer-upper
Buy a rented property
Rent a room out
Use KfW 3-year repayment-free option
Make sure all high-credit loans are paid
Use existing properties
Build your own home

Nick Mulder

Nick is Co-founder and CEO of Hypofriend

first-time-buyers

KFW 300: Great Subsidy for Energy-Efficient Houses in Germany

KFW 300 is in principle a very attractive program; it comes with interest rates as low as 0,01 % and very high loan amounts, of up to 270.000 €. You may be able to save 60.000 € in interest payments and even more if you invest the savings.

first-time-buyers

KFW loans and conditions for 2024 and how it applies to your German mortgage

If you are planning to buy your first existing or new home in Germany, build or buy a new climate friendly home, or renovate a property, you should always take a look at KFW loans and subsidies. Your mortgage advisor should always check if and how much it helps.

first-time-buyers

Baukindergeld: Extra benefit for new homeowners with kids

Baukindergeld is a state subsidy (12K euros over 10 years per child) for families and single parents who want to buy their first home in Germany.

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Increase How Much House You Can Afford

8 Ways to Increase How Much House You Can Afford in Germany

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