[{"data":1,"prerenderedAt":400},["ShallowReactive",2],{"faqs-category-articles-en":3},{"applyForMortgage":4,"about":29,"specialAboutHypofriend":71,"gettingStarted":81,"mortgageFundamentals":113,"exploringMyOptions":152,"mortgageRates":174,"handyDefinitions":175},[5,9,13,17,21,25],{"slug":6,"question":7,"order":8},"mortgage-documents","Which mortgage documents do I need?",1,{"slug":10,"question":11,"order":12},"approval-time","How quickly can I get approved?",2,{"slug":14,"question":15,"order":16},"multiple-banks","Can I apply to multiple banks at the same time?",3,{"slug":18,"question":19,"order":20},"start-paying","When do my mortgage payments start?",4,{"slug":22,"question":23,"order":24},"new-build-delay","What happens if my new build project is delayed?",5,{"slug":26,"question":27,"order":28},"apply-alone","Can I apply alone without my partner?",6,[30,33,36,39,43,47,51,55,59,63,67],{"slug":31,"question":32,"order":8},"who-is-hypofriend","Who is Hypofriend?",{"slug":34,"question":35,"order":12},"is-the-service-free","Is Hypofriend's service free?",{"slug":37,"question":38,"order":16},"different","How is Hypofriend different from other mortgage brokers?",{"slug":40,"question":41,"order":42},"data","Who has access to my data?",7,{"slug":44,"question":45,"order":46},"how-is-my-data-secured","How is my data secured?",8,{"slug":48,"question":49,"order":50},"delete-my-data","Can I delete my data?",9,{"slug":52,"question":53,"order":54},"how-can-i-refer-hypofriend","How can I refer Hypofriend to a friend?",10,{"slug":56,"question":57,"order":58},"who-is-behind-pensionfriend","Who is behind Pensionfriend?",15,{"slug":60,"question":61,"order":62},"cooperation-partner","Who is Pensionfriends' cooperation partner for the pension plan?",16,{"slug":64,"question":65,"order":66},"how-are-my-investments-protected","How are my investments protected and what happens if Pensionfriend or the partner companies involved go bankrupt?",17,{"slug":68,"question":69,"order":70},"referral-program-faq","Does Pensionfriend offer a referral fee?",18,[72,75,78],{"slug":73,"question":74,"order":20},"inside-hypofriend-optimizer","Inside Hypofriend's Optimizer",{"slug":76,"question":77,"order":24},"mortgage-product","How will Hypofriend find me the right mortgage product?",{"slug":79,"question":80,"order":28},"lenders","How can Hypofriend cover all mortgage lenders in Germany?",[82,85,88,91,94,97,100,103,106,109],{"slug":83,"question":84,"order":8},"rent-or-buy","Should I buy or continue renting?",{"slug":86,"question":87,"order":12},"is-now-a-good-time-to-buy-property-for-own-use","Is now a good time to buy property for own use?",{"slug":89,"question":90,"order":16},"real-estate-agent-fees-germany","What are the additional purchasing costs when buying a real estate in Germany?",{"slug":92,"question":93,"order":20},"how-much-can-i-afford-or-borrow","How much can I afford or borrow?",{"slug":95,"question":96,"order":24},"how-can-i-increase-what-i-can-borrow","How can I increase what I can borrow?",{"slug":98,"question":99,"order":28},"can-i-get-a-credit-loan-to-increase-my-affordability","Can I get a credit loan to increase my affordability?",{"slug":101,"question":102,"order":42},"mortgage-without-equity","Can I get a mortgage in Germany without equity?",{"slug":104,"question":105,"order":50},"self-employed-mortgage","I'm a freelancer, am I eligible for a mortgage and how much?",{"slug":107,"question":108,"order":54},"equity","Should I borrow the maximum amount or should I save some equity?",{"slug":110,"question":111,"order":112},"what-s-the-difference-between-buying-for-own-use-and-buy-to-let","What’s the difference between buying for own use and buying to let?",11,[114,117,120,123,126,129,132,135,138,141,144,148],{"slug":115,"question":116,"order":8},"how-can-i-get-pre-qualified","How can I get pre-qualified?",{"slug":118,"question":119,"order":12},"how-is-the-monthly-rate-calculated","How is the monthly rate calculated?",{"slug":121,"question":122,"order":20},"how-quickly-should-i-pay-off-my-mortgage","How quickly should I pay off my mortgage?",{"slug":124,"question":125,"order":24},"downpayment","What is Loan-to-value and why does my down payment matter?",{"slug":127,"question":128,"order":28},"fixed-interest-period","How to choose the right fixed interest period?",{"slug":130,"question":131,"order":42},"can-i-use-extra-repayments-to-repay-my-mortgage-quicker","Can I use extra repayments to repay my mortgage quicker?",{"slug":133,"question":134,"order":46},"are-my-mortgage-payments-tax-deductible","Are my mortgage payments tax-deductible?",{"slug":136,"question":137,"order":50},"what-more-should-i-consider-before-closing-my-mortgage","What more should I consider before closing my mortgage?",{"slug":139,"question":140,"order":54},"sell-house-in-10-years","What should I know if I expect to sell my house within 10 years?",{"slug":142,"question":143,"order":112},"what-is-my-schufa-score","What is my SCHUFA score?",{"slug":145,"question":146,"order":147},"how-can-i-improve-my-schufa-score","How can I improve my SCHUFA score?",12,{"slug":149,"question":150,"order":151},"schufa-score-mortgage-germany","How does my SCHUFA score affect my mortgage?",13,[153,156,159,162,165,168,171],{"slug":154,"question":155,"order":8},"property-valuation","How do I know if the property valuation is fair?",{"slug":157,"question":158,"order":12},"pre-approval","Should I get pre-approved for a mortgage?",{"slug":160,"question":161,"order":16},"german-mortgage-for-foreign-property","Can I get a mortgage for property outside Germany?",{"slug":163,"question":164,"order":20},"approval","What happens after my mortgage request gets approved?",{"slug":166,"question":167,"order":24},"mortgage-requirements-for-tax-foreigners-in-germany","Mortgage Requirements for Tax Foreigners in Germany",{"slug":169,"question":170,"order":24},"KFW-mortgage-germany","How does the KfW subsidy work with my mortgage?",{"slug":172,"question":173,"order":28},"modernisation","Can I include modernisation or renovation costs into the mortgage?",[],[176,184,190,195,203,210,217,224,232,240,247,253,260,268,274,282,290,296,303,311,317,324,331,338,346,353,359,366,374,381,388,394],{"seoTitle":177,"seoDescription":178,"seoKeywords":179,"seoImage":179,"slug":180,"subheadline":181,"id":179,"word":181,"tags":182,"content":183,"preview":179,"introduction":179},"Annuity Loan (Annuitätendarlehen): How It Works","Learn how an annuity loan (\"annuitätische Tilgung\") ensures stable monthly payments with growing principal repayments, a top choice for German homebuyers.",null,"annuity-loan","Annuity Loan",[],"\u003Cp>An Annuity is a loan with a monthly repayment, which is always the same amount. In other words, you pay the same sum each month.\u003C\u002Fp>\n\u003Cp>This annuity payment consists of both interest and principal repayment. The composition of interest and repayment changes slightly with each month. This is because each repayment reduces the remaining loan balance. Therefore, with a constant interest rate and a declining remaining loan balance, the share of interest in the installments decreases month by month, while the share of repayment increases a little month by month.\u003C\u002Fp>\n\u003Cp>This goes on until, at the end of the loan, the principal repayments are almost 100 % of the monthly annuity. In other words, your savings component (the repayment of the loan balance) increases month by month, year by year.\u003Cbr> \u003Cbr>The alternative is a linear mortgage. In a linear mortgage, your principal repayment remains the same. Therefore, your monthly payments go down month after month. This mortgage form is rarely used because, for most people, incomes increase over time. So, if anything, people want their repayments (which are, in essence, savings) to increase with their income rather than decline. This is what happens in an annuity.\u003C\u002Fp>",{"seoTitle":185,"seoDescription":186,"seoKeywords":179,"seoImage":179,"slug":187,"subheadline":187,"id":179,"word":185,"tags":188,"content":189,"preview":179,"introduction":179},"Refinancing","Each mortgage has an interest fixation just for a fixed period. At the end of fixation, the borrower needs a new mortgage for the remaining balance.","Anschlussfinanzierung",[],"\u003Cp>Each mortgage has an interest fixation only for a fixed period. Three months before the end of fixation, the lender has to inform the borrower that it is due to expire.\u003C\u002Fp>\n\u003Cp>You can continue with your current bank--in which case you do not need a new mortgage. Industry data suggest that 40 % of consumers do not shop around. This is not very wise. It always pays to shop around, even if only to ask your bank for a better rate. Your LTV has presumably improved a lot (due to loan repayment and property appreciation), and your income is presumably better. These factors alone should imply a lower margin than what you have been paying. \u003C\u002Fp>\n\u003Cp>If you switch banks, you require a new mortgage for the remaining balance. This will bring with it some notary costs, but this can be worth it. \u003C\u002Fp>\n\u003Cp>The need for either a new mortgage or just a new fixed interest agreement that replaces the old one is usually referred to as the need for “\u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Frefinancing-your-german-mortgage.afb\">Anschlussfinanzierung\u003C\u002Fa>”. If you continue with the same lender it’s called “Prolongation” and if you switch to another mortgage lender it’s called “Umschuldung”. \u003C\u002Fp>\n\u003Cp> \u003C\u002Fp>",{"seoTitle":191,"seoDescription":191,"seoKeywords":179,"seoImage":179,"slug":192,"subheadline":192,"id":179,"word":191,"tags":193,"content":194,"preview":179,"introduction":179},"Child subsidy for new home owners","Baukindergeld",[],"\u003Cp>The “Baukindergeld” is a nationwide government subsidy. It is intended to support families and single parents with children in the purchase of a residential property. \u003C\u002Fp>\n\u003Cp>\u003Cb>All this is no longer available. All deadlines have passed. \u003C\u002Fb>\u003Cb>You can check \u003C\u002Fb>\u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fgerman-mortgage-kfw.afb\">\u003Cb>here\u003C\u002Fb>\u003C\u002Fa>\u003Cb> for subsidies that are still available, notable the KFW 124 program for first-home buyers and other programs for energy-efficient properties.\u003C\u002Fb>\u003C\u002Fp>\n\u003Cp>Please note: The eligibility requirements require that you have signed the purchase agreement or have been granted the building permit between 01\u002F01\u002F2018 and 03\u002F31\u002F2021. The application for Baukindergeld is made after moving in. You have a total of 6 months to do this. According to KfW, the last day on which families and single parents can apply for Baukindergeld is 12\u002F31\u002F2023. After that, the subsidy period ends. \u003C\u002Fp>\n\u003Cp>Example: You bought a house and signed the notarized purchase agreement on 06\u002F22\u002F2020 (the deadline for the purchase agreement was met). You have remodeled the house with a lot of your own work and moved in on 09\u002F14\u002F2022. You applied for the Baukindergeld 2 weeks later, on 09\u002F28\u002F2022 (the deadline for the application within 6 months after moving in met; the deadline for the very last application day was 12\u002F31\u002F2023 met). \u003C\u002Fp>\n\u003Cp>Families with at least one child will be paid 1,200 euros in support annually. The support runs over a period of ten years, which corresponds to total support of 12,000 euros. For each additional child, there is an additional 1,200 euros.\u003C\u002Fp>\n\u003Cp>The Baukindergeld has been available for application since September 2018. Applications can be made retroactively for all properties purchased between January 1, 2018, and March 31, 2021.\u003C\u002Fp>\n\u003Cp>Requirements for the Baukindergeld include:\u003C\u002Fp>\n\u003Cul>\u003Cli>\u003Cp>The taxable income must not exceed the limit of 90,000 euros for one child and 15,000 euros higher for two children.\u003C\u002Fp>\u003C\u002Fli>\u003Cli>\u003Cp>The subsidized property must be the owner's first property. In addition, it must be used by the owner.\u003C\u002Fp>\u003C\u002Fli>\u003C\u002Ful>\n\u003Cp>You can find more information on the child allowance in our article “\u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fbaukindergeld.afb\">Baukindergeld: Extra benefit for new homeowners with kids\u003C\u002Fa>”. \u003C\u002Fp>",{"seoTitle":196,"seoDescription":197,"seoKeywords":179,"seoImage":179,"slug":198,"subheadline":199,"id":179,"word":200,"tags":201,"content":202,"preview":179,"introduction":179},"What Are Project Developers in Real Estate?","Learn how project developers (\"Bauträger\") sell newly built homes in Germany. Save on high real estate commissions by buying directly.","Bautrager","Bauträger","Project Developer",[],"\u003Cp>Newly constructed houses and apartments, while sometimes not as well-advertised online, are often sold directly by the project developer. The project developers engage their own real estate agents--at a modest fee--and pay them directly, thus avoiding you paying a high real estate commission.\u003C\u002Fp>",{"seoTitle":204,"seoDescription":205,"seoKeywords":179,"seoImage":179,"slug":206,"subheadline":206,"id":179,"word":207,"tags":208,"content":209,"preview":179,"introduction":179},"Loan-to-Value (LTV) \u002F Beleihungsauslauf – Explained","Loan-to-Value (LTV) or Beleihungsauslauf refers to the ratio of loan amount to property value. Find out how this affects your mortgage terms in Germany.","Beleihungsauslauf","Loan-to-Value (LTV)",[],"\u003Cp>The LTV, or Loan-to-Value ratio (“Beleihungsauslauf”), indicates the ratio of the loan to the value of the property. In Germany, banks will use the collateral value as the property value. The lower the LTV, the less risky a bank considers a loan. Therefore, they offer you a better interest rate for a loan with a lower LTV. You can reduce the LTV by increasing the down payment.  \u003C\u002Fp>\n\u003Cp> \u003C\u002Fp>",{"seoTitle":211,"seoDescription":212,"seoKeywords":179,"seoImage":179,"slug":213,"subheadline":213,"id":179,"word":214,"tags":215,"content":216,"preview":179,"introduction":179},"What Is Beleihungswert (Collateral Value) in Mortgages?","Learn how banks estimate collateral value (Beleihungswert) and its impact on your interest rate and down payment requirements.","Beleihungswert","Collateral Value",[],"\u003Cp>The collateral value, or Beleihungswert, represents the value that you can achieve when selling your property at any time. This is estimated by the bank. The collateral value is based on the purchase value but considers a possible safety discount. Such discounts differ by bank. Therefore, the actual interest rate a bank may offer to you may differ from the rate you might think would apply to you. More importantly, it may mean you need more money for a down payment. An early consultation with your trusted mortgage advisor can save you many disappointments.\u003C\u002Fp>",{"seoTitle":218,"seoDescription":219,"seoKeywords":179,"seoImage":179,"slug":220,"subheadline":220,"id":179,"word":221,"tags":222,"content":223,"preview":179,"introduction":179},"What Are Bereitstellungszinsen (Commitment Fees)?","Understand \"Bereitstellungszinsen\", when they apply, and how to avoid them in delayed property projects. Save on interest fees.","Bereitstellungszinsen","Commitment interest fees",[],"\u003Cp>A commitment fee or interest payment becomes payable on mortgages when a minimum period between the mortgage contract agreement and the actual payout has expired. This often happens in the case of \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fbuilding-house-germany.afb\">newly built properties\u003C\u002Fa> when the project gets delayed, and the full mortgage has hence not been paid out. Unfortunately, such project delays are a frequent occurrence these days. This charge is usually between 0,15% to 0,35% per month from the 3rd month on, but it differs per bank. You can avoid these interest costs by agreeing on a longer commitment fee\u002Finterest-free period. To see how to get the best interest rates, read our article about \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fhow-to-find-the-best-mortgage-interest-rates.afb\">how to find the best interest rates on your mortgage.\u003C\u002Fa>\u003C\u002Fp>",{"seoTitle":225,"seoDescription":226,"seoKeywords":179,"seoImage":179,"slug":227,"subheadline":228,"id":179,"word":229,"tags":230,"content":231,"preview":179,"introduction":179},"Sondertilgung: How Additional Repayments Save Money","Learn how \"Sondertilgung\" works, its benefits, and how repaying your mortgage faster reduces interest costs.","extra-repayment","Sondertilgung","Additional Repayment",[],"\u003Cp>Many banks offer a \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fsondertilgung-a-popular-but-overrated-option-for-your-german-mortgage.afb\">Sondertilgung\u003C\u002Fa> or additional repayment of up to 5% of your loan amount per annum in addition to your regular monthly repayments. It makes a lot of sense, given that your income is likely to increase over time while your mortgage payment stays the same. Instead of saving through your bank, it is more advantageous to pay off your mortgage more quickly, as the interest on your bank account will mostly be less than that on your mortgage. In practice, however, few people use this option. \u003C\u002Fp>\n\u003Cp>You can also include further repayment options at extra cost in your contract (but normally no more than 10% p.a.). The latter makes sense if you expect a large payout from insurance or inheritance. But often, there are additional costs for this right.\u003C\u002Fp>\n\u003Cp>If you are unsure whether a additional repayment makes sense in your situation, you can find out with \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fextra-repayment-calculator.ia\">our calculator\u003C\u002Fa>.\u003C\u002Fp>",{"seoTitle":233,"seoDescription":234,"seoKeywords":179,"seoImage":179,"slug":235,"subheadline":236,"id":179,"word":237,"tags":238,"content":239,"preview":179,"introduction":179},"Forward Darlehen: Secure Low Rates for Future Financing","Learn how a forward mortgage locks in today’s interest rates for up to 5 years, ensuring future financial security.","forward","Forward Darlehen","Forward Mortgage",[],"\u003Cp>A forward mortgage or Forward Darlehen is a form of \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Frefinancing-your-german-mortgage.afb\">follow-up financing\u003C\u002Fa>. You and the new mortgage lender agree on an interest rate for your new mortgage that starts up to 5,5 years from now. Most banks offer it 5 years in advance. It is as simple as that. It is a unique feature of the \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fmortgage-in-germany.afb\">German mortgage market \u003C\u002Fa>that is wonderful for the borrower. Furthermore, it allows you to secure today’s low interest rate years before your existing mortgage fixed interest period ends. This means that by the time your current mortgage fixed interest period ends, you won’t have to worry about a potential increase in interest rates because you have already secured a follow-up financing at a low interest rate. \u003C\u002Fp>\n\u003Cp>As is the case with other mortgages, you can lock in different interest periods. Locking in for over 15–20 years typically becomes very expensive and is often not necessary as large sums have already been repaid, so the interest risk that remains is limited.\u003C\u002Fp>\n\u003Cp>\u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fcurrent-interest-rates-germany-2025.afb\">In these days\u003C\u002Fa>, when interest rates are still at a very moderate level, a forward mortgage is especially attractive for mortgage owners with a mortgage, especially of 6-9,5 years old, who will need to secure a follow-up financing in the years to come. Mortgages that are that old were typically concluded at high interest rates. Using a forward mortgage, you can then lock in today's low rates.\u003C\u002Fp>\n\u003Cp>\u003Cb>Example:\u003C\u002Fb> Imagine you closed a mortgage in 2012 with a 10-year fixed interest period of 4,5%. In 2022, you can refinance your mortgage without penalty. To benefit from today's moderate interest rates and the penalty-free refinancing in 2022, you can use a forward contract for a new mortgage that starts in 2022. Typically, you do pay a small premium over current interest rates. But that would still be much lower than the interest rate you are paying now (4,5%). If interest rates stay the same, you do not need such a forward contract, but there is a risk that rates will increase. Using a forward contract, you create future security for your interest payments.\u003C\u002Fp>\n\u003Cp>If you are interested in other ways of refinancing your mortgage, you may read \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fbausparvertrag-for-refinancing.add\">our article about the Bausparvertrag\u003C\u002Fa> and how you can avoid high interest rates for refinancing with it.\u003C\u002Fp>",{"seoTitle":241,"seoDescription":242,"seoKeywords":179,"seoImage":179,"slug":243,"subheadline":243,"id":179,"word":244,"tags":245,"content":246,"preview":179,"introduction":179},"Grundbuch: Essential Facts About German Land Registration","Learn what the Grundbuch is, its role in property ownership, and how it records mortgages and legal details.","Grundbuch","Land Registration",[],"\u003Cp>The land registration or Grundbuch is a public register with three sections that provide information on a property, including its legal relationships, size, type of use, and ownership. \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fmortgage-in-germany.afb\">Mortgages\u003C\u002Fa> are registered in this Grundbuch.\u003C\u002Fp>\n\u003Cp>The cost is included in our notary fee estimates.\u003C\u002Fp>",{"seoTitle":248,"seoDescription":249,"seoKeywords":179,"seoImage":179,"slug":250,"subheadline":250,"id":179,"word":248,"tags":251,"content":252,"preview":179,"introduction":179},"Land Charge","The land charge is entered in the land register to secure the creditor’s claim to repay a mortgage.","Grundschuld",[],"\u003Cp>The land charge or Grundschuld is a restriction imposed on a particular piece of land to secure the payment of a sum of money. It is entered in the land register to secure the creditor’s claim to repay a debt. In other words, you cannot sell the land without paying the mortgage. \u003C\u002Fp>",{"seoTitle":254,"seoDescription":255,"seoKeywords":179,"seoImage":179,"slug":256,"subheadline":256,"id":179,"word":257,"tags":258,"content":259,"preview":179,"introduction":179},"Income-Expense Calculation Explained","You can declare your monthly income and expenses in the self declaration to see how much your monthly disposable income is. ","Haushaltsrechnung","Income-Expense Calculation",[],"\u003Cp>You can declare your monthly income and expenses in the self-declaration to see how much your monthly disposable income is. This is necessary to understand how much of your income can be allocated to monthly mortgage payments. A general rule of thumb is that no more than 40 % of your income should be allocated to your mortgage payments. If your monthly mortgage payments exceed this, you can either pay back the mortgage over a longer period of time by decreasing the annual repayment, or you can choose to take on more risk by taking a shorted fixed interest period. Banks can require such a self-declaration. \u003C\u002Fp>",{"seoTitle":261,"seoDescription":262,"seoKeywords":179,"seoImage":179,"slug":263,"subheadline":264,"id":179,"word":265,"tags":266,"content":267,"preview":179,"introduction":179},"What is a Bausparvertrag? ","A Bausparvertrag is a contract combining a savings plan with a real estate loan. The contract consists of two parts: a savings plan & a home loan.","house-savings-contract","Bausparvertrag","Housing-and-Savings-Contract",[],"\u003Cp>A \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fbausparvertrag-mortgage-germany.add\">“housing and savings contract”\u003C\u002Fa> is a contract that combines a savings agreement with a real estate loan. \u003C\u002Fp>\n\u003Cp>To understand this product, it is best to realize that you are, in effect, dealing with three products: \u003C\u002Fp>\n\u003Col>\u003Cli>\u003Cp>An Annuity Mortgage with zero principal repayments and a fixed interest rate.\u003C\u002Fp>\u003C\u002Fli>\u003Cli>\u003Cp>A savings contract in the same amount. Instead of repaying the mortgage each month, the repayment portion of the monthly rate is used in the first phase towards reaching the savings goal required by the savings contract (30-50%).\u003C\u002Fp>\u003C\u002Fli>\u003Cli>\u003Cp>A Bauspar Loan. Once the savings goal of the savings contract is reached, and you are eligible for pay-out, the savings and a new Bauspar Loan are used to pay off the annuity mortgage. This Bauspar loan is, in turn, repaid at a previously agreed interest rate until the loan is fully repaid. In other words, you can fix the interest on your mortgage until it is fully paid off.\u003C\u002Fp>\u003C\u002Fli>\u003C\u002Fol>\n\u003Cp>So, the main advantage is that the interest rate is fixed over the entire period. \u003C\u002Fp>\n\u003Cp>But there are drawbacks.  These contracts have upfront fees, the savings contract pays low interest rates, and there may be, in some cases, an interest rate gap between the Annuity Mortgage and the Bauspar Loan. Hypofriend has, therefore, built calculators that allow us to evaluate all the costs, and it makes sense for you.  \u003C\u002Fp>",{"seoTitle":269,"seoDescription":270,"seoKeywords":179,"seoImage":179,"slug":271,"subheadline":271,"id":179,"word":269,"tags":272,"content":273,"preview":179,"introduction":179},"Purchasing Costs","The purchasing costs include the property transfer tax, notary and land registry fees, as well as real estate broker commission.","Kaufnebenkosten",[],"\u003Cp>The purchasing costs include the property transfer tax, notary and land registry fees, as well as real estate broker commission. You have to pay them when building or buying a property, in addition to the property costs. It is quite normal for German lenders to expect you to pay at least the purchasing costs from your savings.\u003C\u002Fp>\n\u003Cp>\u003Cb>1. Real estate commission (0–3,57 %)\u003C\u002Fb>\u003C\u002Fp>\n\u003Cp>This fee is paid to the real estate agent for successfully supporting the buyer to sell the property. It can range from 0 % — 6 % on the property price. With the value-added tax (VAT) of 19 % in Germany, the total commission fee will lie anywhere between 0–7,14%. Since a change in law at the end of 2020, buyers pay a maximum of 50 % of the fees, i.e., 3,57 %. \u003C\u002Fp>\n\u003Cp>\u003Cb>2. Property transfer tax (3–6,5%)\u003C\u002Fb>\u003C\u002Fp>\n\u003Cp>The second-highest fee associated with is the property transfer tax (Grunderwerbssteuer). The tax amount will vary depending on \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fproperty-prices-germany-2025.add\">which region of Germany \u003C\u002Fa>the property is purchased. As of 2020, the tax ranges from 3,5-6,5 % of the purchase price. For example, in \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fproperty-prices-in-berlin.add\">Berlin\u003C\u002Fa>, the property transfer tax is 6 %, whereas in Munich, it is only 3,5 %. The property transfer tax is an important factor in transferring the property rights to the new owner. Only after the tax office has confirmed that the property transfer tax has been paid will the buyer be entered as the new property owner in the German land registration (Grundbuch). \u003C\u002Fp>\n\u003Cp>\u003Cb>3. Notary & land registry fees (1,5 %-2 %)\u003C\u002Fb>\u003C\u002Fp>\n\u003Cp>In Germany, \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fbuying-german-property.afb\">purchasing property\u003C\u002Fa> only becomes legally binding when a \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fthe-notary-process-in-germany.afb\">public notary \u003C\u002Fa>registers it. The associated notary fee is typically 1.5-2 % of the purchasing price. See the notary fee glossary for details. Among other things, the notary will take care of drafting the purchasing contract, entering the buyer into the land registration, and generally taking care of all communication with the German tax office. It is up to the buyer to decide which notary they wish to use. \u003C\u002Fp>\n\u003Cp>Want to know exactly what your costs will be? \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fproperty-purchasing-cost-calculator-germany.ia\">Use our purchasing cost calculator\u003C\u002Fa> to find out the detailed costs for your property purchase.\u003C\u002Fp>",{"seoTitle":275,"seoDescription":276,"seoKeywords":179,"seoImage":179,"slug":277,"subheadline":278,"id":179,"word":279,"tags":280,"content":281,"preview":179,"introduction":179},"What Are KfW Loans?","Explore how KfW loans can support your home purchase, with up to €100,000 for properties and up to €270,000 for energy-efficient homes.","kfw-loan","KfW Darlehen","KfW Loan",[],"\u003Cp>\u003Ca href=\"https:\u002F\u002Fwww.kfw.de\u002Fkfw.de.html\">KfW\u003C\u002Fa> is the development bank of Germany – Kreditanstalt für Wiederaufbau. Part of its mission is to support domestic development. \u003C\u002Fp>\n\u003Cp>KfW offers co-financing to banks so that your mortgage is not just from the bank but also includes a portion from the KfW. Some program offers loans that of up to 100.000 Euro and beyond that can be financed with the KfW for the purchase of your home in Germany. For some programs you do need to occupy it yourself: in that case you have to move into the property within 12 months after the KfW mortgage is paid out. It does not matter whether it is your first home, or you have already bought other homes. \u003Cbr>\u003Cbr>You can also get KfW funding for an \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fbenefits-investment-property-germany.add\">investment property\u003C\u002Fa> or a second home, like a holiday home. \u003Cbr>\u003Cbr>The KfW charges usually slightly lower interest rates than most banks but requires relatively rapid repayment. Most programs only allow you to fix the rate for 10 years. This can imply a high monthly payment in the first 10 years of your loan and relatively expensive follow-up financing. The main benefit is that it can lower the interest rate on the loan portion offered by the local bank, or even persuade them to offer the loan in the first place.\u003C\u002Fp>\n\u003Cp>KfW also offers very \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fkfw-300-great-subsidy-for-energy-efficient-houses-in-germany.add\">attractive subsidized loans\u003C\u002Fa> of up to 270.000 Euros for energy-efficient newly constructed houses. Due to the very low interest rates, the implicit subsidies can be up to 80.000 Euros. \u003C\u002Fp>\n\u003Cp>KfW programs change all the time. You can read in detail about this here: \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fgerman-mortgage-kfw.afb\">KFW loans and conditions and how it applies to your German mortgage \u003C\u002Fa>\u003C\u002Fp>\n\u003Cp>\u003C\u002Fp>",{"seoTitle":283,"seoDescription":284,"seoKeywords":179,"seoImage":179,"slug":285,"subheadline":286,"id":179,"word":287,"tags":288,"content":289,"preview":179,"introduction":179},"Land Tax in Germany: Understanding Grundsteuer","Learn about land tax (Grundsteuer), the property tax in Germany. Discover how rates are calculated, quarterly payments, and why the costs are low.","land-tax","Grundsteuer","Land Tax",[],"\u003Cp>As a homeowner, you must pay a quarterly “Grundsteuer” (land tax), which is dependent on the value dictated by your local “Finanzamt” (tax office). This property tax is generally no more than 150 € per quarter, based on 41 million German households. \u003C\u002Fp>\n\u003Cp>The tax rates that are quoted as a percentage that you may see in news items sound scary when you apply them to the prices of current houses. In practice, however, the rates are applied to extraordinarily low property values – think two-hundred-year-old values. This is why the actual tax is relatively low. \u003C\u002Fp>\n\u003Cp>Knowing the \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fproperty-tax-calculator-for-germany.ia\">assessment rate and details of property tax reform\u003C\u002Fa> is key. Each federal state determines the property tax assessment based on the property's location, and rules often vary whether you’re managing real estate in Baden-Württemberg or Brandenburg North Rhine-Westphalia Saarland Schleswig-Holstein.\u003C\u002Fp>",{"seoTitle":291,"seoDescription":292,"seoKeywords":179,"seoImage":179,"slug":293,"subheadline":293,"id":179,"word":291,"tags":294,"content":295,"preview":179,"introduction":179},"Mortgage Duration","The maturity or \"Laufzeit\" is the length of time between the payout of the mortgage and the end of the mortgage.  ","Laufzeit",[],"\u003Cp>The maturity or “Laufzeit” is the length of time between the payout of the mortgage and the end of the mortgage. This is \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fmortgage-in-germany.afb\">usually\u003C\u002Fa> 30 years in Germany. Normally, the maturity is different from the fixed interest period. This is because in Germany, customers usually choose a repayment percentage (“Tilgung”), and such a percentage rarely coincides with full repayment at maturity. Mortgages that are fully repaid at the maturity of the loan are referred to as “Volltilgung”.\u003C\u002Fp>",{"seoTitle":297,"seoDescription":298,"seoKeywords":179,"seoImage":179,"slug":299,"subheadline":300,"id":179,"word":297,"tags":301,"content":302,"preview":179,"introduction":179},"Remaining Loan Balance","Each mortgage has an interest fixation for a fixed period. At the end of fixation, the borrower needs a new mortgage or a prolongation for the balance.","loanbalance","Restschuld",[],"\u003Cp>After the expiry of the fixed interest period, a certain loan amount is usually left; this is normally referred to as the remaining balance. The remaining balance can, in another context, also refer to what is left at the end of the \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fmortgage-in-germany.afb\">legal mortgage contract\u003C\u002Fa>, which is usually 30 years in Germany.\u003C\u002Fp>\n\u003Cp> \u003C\u002Fp>",{"seoTitle":304,"seoDescription":305,"seoKeywords":179,"seoImage":179,"slug":306,"subheadline":307,"id":179,"word":308,"tags":309,"content":310,"preview":179,"introduction":179},"Real Estate Commission\u002FFee Explained","This fee is paid to the real estate agent for successfully referring the buyer to the property. It can range from 3% - 7,14% on the property price. ","Maklergebuehr","Maklergebühr","Real Estate Commission\u002FFee",[],"\u003Cp>This fee is paid to the real estate agent for successfully referring the buyer to the \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fbuying-german-property.afb\">property they wish to purchase\u003C\u002Fa>. It can range from 0% — 7,14% of the property price. The fee is now, in nearly all cases, shared equally between buyer and seller. \u003C\u002Fp>\n\u003Cp>The table below exhibits the real estate commission depending on the state in Germany. \u003C\u002Fp>\n\u003Ctable border=\"1\" cellpadding=\"1\" cellspacing=\"1\" style=\"width:500px;\">\n\t\u003Ccaption>Real Estate Commission Per State\u003C\u002Fcaption>\n\t\u003Ctbody>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd>\n\t\t\t\u003Cp style=\"margin-left: 40px;\">\u003Cstrong>State\u003C\u002Fstrong>\u003C\u002Fp>\n\t\t\t\u003C\u002Ftd>\n\t\t\t\u003Ctd>\u003Cstrong>Real estate commission\u003C\u002Fstrong>\u003C\u002Ftd>\n\t\t\t\u003Ctd>\u003Cstrong>Quantity paid by seller\u003C\u002Fstrong>\u003C\u002Ftd>\n\t\t\t\u003Ctd>\u003Cstrong>Quantity paid by buyer\u003C\u002Fstrong>\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd>Baden-Württemberg\u003C\u002Ftd>\n\t\t\t\u003Ctd>7,14%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd>Bayern\u003C\u002Ftd>\n\t\t\t\u003Ctd>7,14%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd>Berlin\u003C\u002Ftd>\n\t\t\t\u003Ctd>7,14%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd>Brandenburg\u003C\u002Ftd>\n\t\t\t\u003Ctd>7,14%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd>Bremen\u003C\u002Ftd>\n\t\t\t\u003Ctd>5,95%\u003C\u002Ftd>\n\t\t\t\u003Ctd>2,98%\u003C\u002Ftd>\n\t\t\t\u003Ctd>2,98%\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd>Hamburg \u003C\u002Ftd>\n\t\t\t\u003Ctd>6,25%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,07%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,18%\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd>Hessen\u003C\u002Ftd>\n\t\t\t\u003Ctd>5,95%\u003C\u002Ftd>\n\t\t\t\u003Ctd>2,98%\u003C\u002Ftd>\n\t\t\t\u003Ctd>2,98%\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd>Mecklenburg-Vorpommern\u003C\u002Ftd>\n\t\t\t\u003Ctd>5,95%\u003C\u002Ftd>\n\t\t\t\u003Ctd>2,87%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,08%\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd>Niedersachsen\u003C\u002Ftd>\n\t\t\t\u003Ctd>7,14% or 4,76-5,95%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57% or 0%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd>Nordhein-Westfalen\u003C\u002Ftd>\n\t\t\t\u003Ctd>7,14%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd>Rheinland-Pfalz\u003C\u002Ftd>\n\t\t\t\u003Ctd>7,14%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd>Saarland\u003C\u002Ftd>\n\t\t\t\u003Ctd>7,14%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd>Sachsen\u003C\u002Ftd>\n\t\t\t\u003Ctd>7,14%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd>Sachsen-Anhalt\u003C\u002Ftd>\n\t\t\t\u003Ctd>7,14%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd>Schleswig-Holstein\u003C\u002Ftd>\n\t\t\t\u003Ctd>7,14%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd>Thüringen\u003C\u002Ftd>\n\t\t\t\u003Ctd>7,14%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\t\u003Ctd>3,57%\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\u003C\u002Ftbody>\n\u003C\u002Ftable>\n\u003Cp>From the 23rd of December 2020 onwards, the real estate commission fee is the whole of Germany shared by the seller and buyer. \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fmortgage-tips\u002Ffirst-time-buyers\u002Freal-estate-commission-law-berlin\">Read more in our article about the new law. \u003C\u002Fa>\u003C\u002Fp>",{"seoTitle":312,"seoDescription":313,"seoKeywords":179,"seoImage":179,"slug":314,"subheadline":314,"id":179,"word":312,"tags":315,"content":316,"preview":179,"introduction":179},"Monthly payment","It’s the total monthly payment of the loan, and the sum of interest and principal repayments.","Monatsrate",[],"\u003Cp>The Monatsrate or monthly payment is the total monthly payment on a mortgage. It is the sum of interest and principal payments. The principal payment is also referred to as repayment and is the payment of the original loan in installments. The term \u003Ci>Monatsrate\u003C\u002Fi> is often used for \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fmortgage-in-germany.afb\">German mortgages\u003C\u002Fa>. For an annuity mortgage, the Monatsrate is constant, including a decreasing interest part and an increasing repayment part.\u003C\u002Fp>",{"seoTitle":318,"seoDescription":319,"seoKeywords":179,"seoImage":179,"slug":320,"subheadline":321,"id":179,"word":318,"tags":322,"content":323,"preview":179,"introduction":179},"Mortgage","A mortgage is a loan collateralized by real estate. For the purchase or construction of a property most people need a mortgage.","mortgage","Immobilienfinanzierung",[],"\u003Cp>A mortgage is a loan collateralized by real estate. For the purchase or construction of a property, most people need a mortgage.\u003C\u002Fp>\n\u003Cp>Important parameters for a \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fmortgage-in-germany.afb\">mortgage in Germany\u003C\u002Fa> are the annual percentage \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fcurrent-interest-rates-germany-2025.afb\">rate of interest\u003C\u002Fa>, the length of the fixed interest period, and the initial repayment rate.\u2028 \u2028The Fixed Interest Annuity is the most common type of mortgage in Germany. \u003C\u002Fp>",{"seoTitle":325,"seoDescription":326,"seoKeywords":179,"seoImage":179,"slug":327,"subheadline":328,"id":179,"word":325,"tags":329,"content":330,"preview":179,"introduction":179},"Notary Fee","Among other things, the notary will take care of drafting the purchasing contract and entering the buyer in the land registration.","notar","Notarkosten",[],"\u003Cp>If you are interested in buying a home in Germany, \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fthe-notary-process-in-germany.afb\">you need to have a notary\u003C\u002Fa>. \u003C\u002Fp>\n\u003Cp>The overall associated notary fee is typically 1,5-2 % of the purchasing price. The cost is lower, the higher the purchase price is, and the higher the mortgage amount. To be more precise:\u003C\u002Fp>\n\u003Cp>The fee for the purchase is about 1,1 % for a house of 200.000 Euro and declines to about 0,9 % for a house of 1 million Euro.\u003C\u002Fp>\n\u003Cp>The fee for the mortgage passing and registration is about 0,6 % for a mortgage of 200.000 euros and declines to about 0,5 % for one of 1 million euros.\u003C\u002Fp>\n\u003Cp>Adding a second mortgage component (e.g., a KFW loan of 50.000 euros) will add about 200 Euros to the cost. \u003C\u002Fp>\n\u003Cp>Among other things, the notary will take care of drafting the purchasing contract, entering the buyer in the land registration, and generally taking care of all communication with the German tax office.\u003Cbr>\u003Cbr>Keep in mind that a notary will charge you for just drafting the purchase contract, even if you don't end up buying the property.\u003C\u002Fp>\n\u003Cp>This fee estimate includes the cost of registration in the land registry.\u003C\u002Fp>\n\u003Cp>\u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fnotary-fees-calculator-germany.ia\">Use our notary fees calculator\u003C\u002Fa> to find out the detailed cost of the notary and land registry fees for your property purchase.\u003C\u002Fp>\n\u003Cp> \u003C\u002Fp>",{"seoTitle":332,"seoDescription":333,"seoKeywords":179,"seoImage":179,"slug":334,"subheadline":335,"id":179,"word":332,"tags":336,"content":337,"preview":179,"introduction":179},"Notary & Notarization","In Germany, only notarized real estate contracts are legally binding. A notary acts as a neutral intermediary between the contracting parties.","notary","Notar & Beurkundung",[],"\u003Cp>Since in Germany, only \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fthe-notary-process-in-germany.afb\">notarized purchase contracts\u003C\u002Fa> for real estate or land are legally binding, a notary is needed. The notary in Germany requires all documents to be in German; hence, you will be required to be present with a German-speaking representative, and their identity will be recorded as a witness. The notary serves as a neutral intermediary between the contracting parties, certifies the purchase contract of the property, and arranges the request for the land charge at the land registry.\u003C\u002Fp>",{"seoTitle":339,"seoDescription":340,"seoKeywords":179,"seoImage":179,"slug":341,"subheadline":342,"id":179,"word":343,"tags":344,"content":345,"preview":179,"introduction":179},"Property Transfer Tax Explained","This Real Estate Property Transfer Tax depends on the region of Germany the property is purchased. It’s between 3.5% and 6.5% of the purchase price. ","property-transfer-tax","Grunderwerbsteuer","Real Estate Property Transfer Tax",[],"\u003Cp>This Property Transfer tax is paid on the transfer of the property. The tax amount will vary depending on which region of Germany the property is purchased. It’s between 3,5% and 6,5% of the purchase price. Only after the tax office has confirmed that the property transfer tax has been paid will the buyer be entered as the new \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fbenefits-investment-property-germany.add\">property owner \u003C\u002Fa>in the German land registration (Grundbuch) (last updated: Aug 5th, 2025).\u003C\u002Fp>\n\u003Ctable border=\"1\" cellpadding=\"0\" cellspacing=\"0\" dir=\"ltr\" xmlns=\"http:\u002F\u002Fwww.w3.org\u002F1999\u002Fxhtml\">\n\t\u003Ccolgroup>\n\t\t\u003Ccol width=\"197\">\n\t\t\u003Ccol width=\"80\">\n\t\u003C\u002Fcolgroup>\n\t\u003Ctbody>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Bundesland"}\">Bundesland\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Tax Rate"}\">Tax Rate\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Baden-Württemberg"}\">Baden-Württemberg\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"5,0 %"}\">5,0 %\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Bayern"}\">Bayern\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"3,5 %"}\">3,5 %\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Berlin"}\">Berlin\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"6,0 %"}\">6,0 %\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Brandenburg"}\">Brandenburg\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"6,5 %"}\">6,5 %\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Bremen"}\">Bremen\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"5,0 %"}\">5,0 %\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Hamburg"}\">Hamburg\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"4,5 %"}\">5,5 %\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Hessen"}\">Hessen\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"6,0 %"}\">6,0 %\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Mecklenburg-Vorpommern"}\">Mecklenburg-Vorpommern\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"5,0 %"}\">6,0 %\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Niedersachsen"}\">Niedersachsen\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"5,0 %"}\">5,0 %\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Nordrhein-Westfalen"}\">Nordrhein-Westfalen\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"6,5 %"}\">6,5 %\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Rheinland-Pfalz"}\">Rheinland-Pfalz\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"5,0 %"}\">5,0 %\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Saarland"}\">Saarland\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"6,5 %"}\">6,5 %\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Sachsen"}\">Sachsen\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"3,5 %"}\">5,5 %\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Sachsen-Anhalt"}\">Sachsen-Anhalt\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"5,0 %"}\">5,0 %\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Schleswig-Holstein"}\">Schleswig-Holstein\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"6,5 %"}\">6,5 %\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Thüringen"}\">Thüringen\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"6,5 %"}\">5,0 %\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\u003C\u002Ftbody>\n\u003C\u002Ftable>\n\u003Cp>\u003C\u002Fp>",{"seoTitle":347,"seoDescription":348,"seoKeywords":179,"seoImage":179,"slug":349,"subheadline":350,"id":179,"word":347,"tags":351,"content":352,"preview":179,"introduction":179},"Schufa Score","SCHUFA is a credit rating agency which determines your creditworthiness and score. ","schufa","SCHUFA",[],"\u003Cp>\u003Ca href=\"https:\u002F\u002Fwww.schufa.de\">SCHUFA\u003C\u002Fa> is a credit rating agency that rates you with a credit score as an indication of your creditworthiness. Many banks will check your creditworthiness using your credit score at SCHUFA.\u003C\u002Fp>\n\u003Cp>SCHUFA does not divulge its credit-scoring method. But you can be assured that they check whether you pay all your bills on time. Also, outstanding installment loan balances (personal loans, auto loans, student loans) are not a good thing, as are too many credit cards.\u003C\u002Fp>\n\u003Cp>You may want to obtain (paid) access to the data SCHUFA maintains for you (through meineSCHUFA kompakt if you have time for them to mail it to you) so you can check for any errors.\u003C\u002Fp>\n\u003Cp>Read more about the topic SCHUFA and why it is important in our blog article "\u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fcreditworthiness-schufa-mortgage.afb\">What’s the role of SCHUFA in getting a mortgage?\u003C\u002Fa>".\u003C\u002Fp>",{"seoTitle":354,"seoDescription":355,"seoKeywords":179,"seoImage":179,"slug":356,"subheadline":356,"id":179,"word":354,"tags":357,"content":358,"preview":179,"introduction":179},"Self Declaration","The Selbstauskunft contains all personal details, income, liabilities, and assets, giving banks an important basis for their credit decision.","Selbstauskunft",[],"\u003Cp>Many banks use the self-declaration, which is provided to the borrower when making the loan request, for giving a first offer. In addition to the personal details, it also contains all data on income as well as existing liabilities and assets. As a borrower, you can get an overview of your current situation, and banks receive an important basis for the credit decision. \u003C\u002Fp>",{"seoTitle":360,"seoDescription":361,"seoKeywords":179,"seoImage":179,"slug":362,"subheadline":362,"id":179,"word":363,"tags":364,"content":365,"preview":179,"introduction":179},"Tilgung: Understanding German Mortgage Repayment","Learn the Tilgung definition and how repayment rates work in Germany. Explore options from 1% to 6% and tips to pay off your mortgage faster.","Tilgung","Repayment rate",[],"\u003Cp>The repayment rate, or Tilgung, is the annual percentage of the \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fmortgage-in-germany.afb\">mortgage\u003C\u002Fa> that is being repaid. So if the Tilgung is 1 %, and the mortgage balance is 100.000 €, the repayment is 1.000 € per year or about 84 Euros per month. In practice, the Tilgung refers to the initial repayment rate.\u003C\u002Fp>\n\u003Cp>In other countries, the repayment convention is very different. There, you choose an end year for the mortgage (usually 30 years, but sometimes other periods are used). The bank then automatically picks a “Tilgung” that ensures full repayment at the end of the period. \u003C\u002Fp>\n\u003Cp>In Germany, \u003Cb>you can select a Tilgung from as low as 1 % to as high as 6 %\u003C\u002Fb> or even higher, and often at increments of 0,5 %. Therefore, you have more choices, but it is important to understand this choice. \u003C\u002Fp>\n\u003Cp>\u003Cb>TIP:\u003C\u002Fb> As a rule of thumb, a 3 % Tilgung repays your mortgage in about 30 years. A 2 % Tilgung repays the mortgage in about 40–45 years. \u003C\u002Fp>\n\u003Cp>The precise speed of repaying your mortgage in full depends on \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fcurrent-interest-rates-germany-2025.afb\">how high the interest rate is\u003C\u002Fa>. This is a little complex. The reason is that with a higher interest rate, a reduction in the balance saves you more money and, hence, given a fixed monthly payment, allows you to repay quickly.\u003C\u002Fp>\n\u003Cp>\u003Cb>TIP:\u003C\u002Fb> Our advice is to focus on the remaining loan balance as a simple way to understand the speed of repayment. \u003C\u002Fp>\n\u003Cp>Finally, keep in mind that only a few banks offer a very low Tilgung. A Tilgung of 1 %  may come with a higher interest rate, and not all people qualify for such a low Tilgung.\u003C\u002Fp>",{"seoTitle":367,"seoDescription":368,"seoKeywords":179,"seoImage":179,"slug":369,"subheadline":370,"id":179,"word":371,"tags":372,"content":373,"preview":179,"introduction":179},"Required Mortgage Documents Explained","The following list shows you which documents you need to apply for a mortgage in Germany.","Unterlagen","Notwendige Unterlagen","Required Mortgage Documents",[],"\u003Cp>Personal Documents\u003C\u002Fp>\n\u003Ctable border=\"1\" cellpadding=\"0\" cellspacing=\"0\" dir=\"ltr\" xmlns=\"http:\u002F\u002Fwww.w3.org\u002F1999\u002Fxhtml\">\n\t\u003Ccolgroup>\n\t\t\u003Ccol>\n\t\t\u003Ccol>\n\t\u003C\u002Fcolgroup>\n\t\u003Ctbody>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Identity Card & Certificate Of Registration (Ausweis & Meldebscheinigung)"}\">Identity Card & Certificate Of Registration (Ausweis & Meldebscheinigung)\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"To legitimize yourself you need valid identity documents. If you don't have a German ID card, you'll need to provide your passport along with a registration certificate stating your current address. You can obtian a valid registration certificate at your local Bürgeramt at any time."}\">To legitimize yourself you need valid identity documents. If you don't have a German ID card, you'll need to provide your passport along with a registration certificate stating your current address. You can obtain a valid registration certificate at your local Bürgeramt at any time.\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Payslips (Gehaltsabrechnungen)"}\">Payslips (Gehaltsabrechnungen)\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"A payslip is a receipt which the employee receives when he is paid. It includes billing details, such as income tax, social security contributions, as well as the type and amount of supplements."}\">A payslip is a receipt which the employee receives when receiving their salary. It includes billing details, such as income tax, social security contributions, as well as the type and amount of supplements.\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Income Tax Assesment (Einkommensteuer bescheid)"}\">Income Tax Assesment (Einkommensteuer bescheid)\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Taxpayers usually get their annual income tax assesment by mail from their local tax office and, if you prefer, you can also get it electronically. Among other things, it includes information about existing real estate assets and income from self-employment."}\">Taxpayers usually get their annual income tax assessment by mail from their local tax office and, if you prefer, you can also get it electronically. Among other things, it includes information about existing real estate assets and income from self-employment.\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Proof of Equity (Eigenkapital Nachweis)"}\">Proof of Equity (Eigenkapital Nachweis)\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"The higher the equity, the lower the risk for the bank and the better the conditions for you. Equity includes personal savings, but also assets such as life insurance payments and debt-free real estate."}\">The higher the equity, the lower the risk for the bank and the better the conditions for you. Equity includes personal savings, but also assets such as stocks, a life insurance and other real estate.\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\u003C\u002Ftbody>\n\u003C\u002Ftable>\n\u003Cp>\u003C\u002Fp>\n\u003Cp>Property Documents\u003C\u002Fp>\n\u003Ctable border=\"1\" cellpadding=\"0\" cellspacing=\"0\" dir=\"ltr\" xmlns=\"http:\u002F\u002Fwww.w3.org\u002F1999\u002Fxhtml\">\n\t\u003Ccolgroup>\n\t\t\u003Ccol>\n\t\t\u003Ccol>\n\t\u003C\u002Fcolgroup>\n\t\u003Ctbody>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Floor Plan (Grundriss)"}\">Floor Plan (Grundriss)\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"A floor plan is a true-to-scale, two-dimensional drawing that represents the relationship between spaces and is part of the exposé."}\">A floor plan is a true-to-scale, two-dimensional drawing that represents the relationship between spaces and is part of the exposé.\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Land Register Map (Flurkarte)"}\">Land Register Map (Flurkarte)\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"The plat is an official proof of the official existence and location of a property. You can apply for it at the responsible \\"Landschaftskataster\\" and it typically costs between about 12 € and 50 €."}\">The map is official proof of the existence and location of a property. You can apply for it at the responsible \"Landschaftskataster\" and it typically costs between 12 € and 50 €.\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Building Description (Baubeschreibung)"}\">Building Description (Baubeschreibung)\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"The building description is an integral part of the building contract and defines which services the property developer hands over to you and at which price. It should be very detailed because only the service that is contractually agreed upon must be provided."}\">The building description is an integral part of the building contract and defines which services the property developer hands over to you and at which price. It should be very detailed because only the service that is contractually agreed upon must be provided.\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Land Register Extract (Grundbuchauszug)"}\">Land Register Extract (Grundbuchauszug)\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"The land register extract is an expression of a land register sheet. In the land register, the ownership of land is noted, the rights and burdens, such as land charges recorded. It is obtained from the competent district court."}\">The land register extract is an expression of a land register sheet. In the land register, the ownership of land is noted, the rights and burdens, such as land charges recorded. It is obtained from the competent district court.\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Living Space Calculation (Wohnflächenberechnung)"}\">Living Space Calculation (Wohnflächenberechnung)\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"The actual floor space does not match the living space, because certain areas are deducted. Living space in an apartment or a house, according to law, consists of living room, bedroom and children's room, kitchens, dining room, hallways, bathrooms and storage rooms. An appraiser measures the area, which takes up to two hours and costs between 160 and 250 euros."}\">The actual floor space does not match the living space, because certain areas are deducted. Living space in an apartment or a house, according to law, consists of living room, bedroom and children's room, kitchens, dining room, hallways, bathrooms and storage rooms. An appraiser measures the area, which typically takes less then two hours and costs between 160 and 250 euros.\u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\t\u003Ctr>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"Declaration Of Division (Teilungserklärung)"}\">Declaration Of Division (Teilungserklärung)\u003C\u002Ftd>\n\t\t\t\u003Ctd data-sheets-value=\"{"1":2,"2":"In the declaration of division the ownership of multi-family houses is regulated. The property of the community belongs to all owners and may also be used by them, for example the staircase. The declaration of division is deposited with the Land Registry Office, because the registration of the property is based on the declaration of division. "}\">In the declaration of division the ownership of multi-family houses is defined. The common areas  belong to all owners and may also be used by them, for example the staircase. The declaration of division is deposited with the Land Registry Office, because the registration of the property is based on the declaration of division. \u003C\u002Ftd>\n\t\t\u003C\u002Ftr>\n\t\u003C\u002Ftbody>\n\u003C\u002Ftable>\n\u003Cp>\u003C\u002Fp>",{"seoTitle":375,"seoDescription":376,"seoKeywords":179,"seoImage":179,"slug":377,"subheadline":378,"id":179,"word":375,"tags":379,"content":380,"preview":179,"introduction":179},"Full-Repayment Loan","A Full-Repayment loan has a fixed interest rate over the entire term, where the mortgage is completely paid back by the end of the fixation period.","Volltilgung","Volltilgerdarlehen",[],"\u003Cp>A Full-Repayment loan is a loan with a fixed interest rate over the entire term, where the mortgage is completely paid back by the end of the fixed interest period. This means the annual repayment rate (Tilgung) is often higher, at least 3 %. This brings a higher certainty, as you will not have any remaining loan balance to refinance at the end of your fixed interest period.\u003C\u002Fp>",{"seoTitle":382,"seoDescription":383,"seoKeywords":179,"seoImage":179,"slug":384,"subheadline":385,"id":179,"word":382,"tags":386,"content":387,"preview":179,"introduction":179},"Prepayment Penalty","In case of an early repayment of a mortgage in Germany, e.g. before expiry of the contractually agreed fixed interest period, the borrower will be charged by the lender.","Vorfaelligkeitsentschaedigung","Vorfälligkeitsentschädigung",[],"\u003Cp>In case of premature cancellation, that is, before the expiry of the contractually agreed fixed interest period, the borrower will be charged for the difference the bank earns on the mortgage and what it earns if it reinvests the money. Make no mistake: what the bank earns is typically much higher (1-1,5 %) than what they get if they invest in government bonds. This difference reflects their risk markup and compensation for cost. So, the penalty can be considerable if you leave your home well before the fixed interest period runs out. \u003C\u002Fp>\n\u003Cp>After 10 years, the borrower can cancel the existing loan with a 6-month notice without paying this fee.\u003C\u002Fp>\n\u003Cp>The penalty is also reduced when \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fcurrent-interest-rates-germany-2025.afb\">market interest rates\u003C\u002Fa> have increased beyond when you concluded your mortgage. The penalty can go up if market interest rates decline. The risk of a high penalty in the future if you conclude a mortgage now is lower these days because interest rates are near historic lows. \u003C\u002Fp>\n\u003Cp>if you are thinking about a premature cancellation, you may consider ways of refinancing. You can read up on that \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Frefinancing-your-german-mortgage.afb\">here in our article\u003C\u002Fa> .\u003C\u002Fp>\n\u003Cp> \u003C\u002Fp>",{"seoTitle":389,"seoDescription":390,"seoKeywords":179,"seoImage":179,"slug":391,"subheadline":391,"id":179,"word":389,"tags":392,"content":393,"preview":179,"introduction":179},"Fixed Interest Period","It’s the period of your mortgage's fixed interest rate. In Germany, the default length for a mortgage is 10 years.","Zinsbindungsfrist",[],"\u003Cp>The Fixed Interest Period refers to how long \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fhow-to-find-the-best-mortgage-interest-rates.afb\">your mortgage's interest rate\u003C\u002Fa> is fixed. In Germany, the most frequently used fixed interest period for a mortgage is 10 years. This means that the interest rate does not change for 10 years.  \u003C\u002Fp>\n\u003Cp>In general, a longer fixed period will mean greater security and a higher interest rate. A shorter fixed period will mean a lower interest rate but a higher interest rate risk. However, this is not always the case. A complicating factor is that if you leave before the 10 years are over, you may be subject to paying the bank the lost interest payments as a penalty, the so-called “Vorfälligkeitsentschädigung”. \u003C\u002Fp>\n\u003Cp>While intermittent maturities are available, in Germany, banks offer the best prices for rates that are fixed for 5, 10, 15, 20, and 30 years.\u003C\u002Fp>\n\u003Cp>TIP: Rates for 10-year mortgages are relatively attractive in Germany because banks make substantive fixed costs and want to recoup them during the loan period. Therefore, shorter fixed interest tends to be relatively expensive compared to other countries. Longer rates (over 10 years) rates tend to be more expensive than in other countries, as customers have the right to cancel their mortgage after 10 years. Banks recoup the potential costs for this by charging more for longer mortgages.\u003C\u002Fp>\n\u003Cp>Use the optimal mortgage tool to see what the best fixed rate period is for you. We take all factors into account, like the interest rate, interest rate projections, risk of early departure and penalty, etc.\u003C\u002Fp>",{"seoTitle":395,"seoDescription":396,"seoKeywords":179,"seoImage":179,"slug":397,"subheadline":397,"id":179,"word":395,"tags":398,"content":399,"preview":179,"introduction":179},"Interest Only Loan","In an interest only loan, only the interest portion is repaid over a fixed period.","Zinszahlungsdarlehen",[],"\u003Cp>In an interest-only loan, only the interest portion is repaid over a fixed period. So the repayments are quite low at the beginning. But, of course, the full amount of the loan outstanding is still due for repayment at the end of the term. If you take this type of loan for a long-term mortgage, then it is highly recommended to make sure that you have other savings, such as \u003Ca href=\"https:\u002F\u002Fpensionfriend.de\u002Fen\">life insurance\u003C\u002Fa>, that can cover the outstanding loan at the end of the term.\u2028 Since the interest payments can be tax-deductible for \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fbenefits-investment-property-germany.add\">investors\u003C\u002Fa>, this type of loan is usually of interest to investment buyers. Not many banks in Germany offer interest-only loans, and if they do, they often compare them with a \u003Ca href=\"https:\u002F\u002Fhypofriend.de\u002Fen\u002Fbausparvertrag-for-refinancing.add\">Bausparvertrag\u003C\u002Fa>.\u003C\u002Fp>",1785510330306]