German Mortgages Explained

How high should my income be to get a mortgage in Germany?

In Germany, the second most important criteria, after savings, is your income and creditworthiness. Lenders are more likely to extend a loan when your disposable income, the amount leftover after all your costs are paid each month, is higher. To calculate your disposable income, they will do a so-called income/outcome calculation, which will take your monthly incomes, from salary or other sources (like children benefits) and deduct the recurring costs like health insurance. In general, lenders will use this to calculate how comfortably you can pay your mortgage payments every month. Often lenders use about 40% of your monthly income as the limit for your monthly mortgage payments. For example, if you earn 3,000€ net per month, the maximum monthly payments would be 1,200€.

But critical is what you are willing to spend on your mortgage. Lenders can often accommodate a convincing story, and our advisors can help to find you the bank that is willing to do so.

While lenders have independent criteria, it is quite common that the minimum monthly net income is 1,100€. To calculate how much you can afford and what monthly mortgage payments would be, try the free calculator.