Down payment for a house in Germany: how much do you actually need?

Most people saving for a house in Germany focus on one number: the purchase price. But the total capital you need on the day you sign can be 30–40% higher than that figure. The gap comes from costs that sit outside the mortgage entirely, and banks expect you to cover them from your own savings. This article gives you the full breakdown of the down payment for a house in Germany, in euros, so you know exactly what to aim for.

How much is the down payment for a house in Germany?

In Germany, the standard down payment is 20% of the purchase price. On top of that, you'll need to cover Nebenkosten (ancillary purchase costs) of roughly 9–15%, which include property transfer tax, notary fees, land register fees and, if applicable, estate agent commission. These costs must come from your own funds. Banks will not finance them. In total, plan for 30–35% of the purchase price in available capital before you apply for a mortgage.

That 20% figure is a guideline, not a law. Some banks will lend with 10–15% equity, and a few will consider less. But the lower your equity, the higher the interest rate you'll pay, and the harder it is to get approved. The 20% mark is where most lenders offer competitive terms.

Eigenkapital vs. Anzahlung: why the terminology matters

Two German terms come up constantly, and they don't mean the same thing.

Eigenkapital (equity) is the total amount of your own capital that the bank needs you to have before it will lend. This includes everything: the portion of the purchase price you pay yourself, the Nebenkosten, and ideally a buffer on top.

Anzahlung (down payment or deposit) is the specific sum you transfer as part of the purchase, typically after the notarised contract is signed and the notary sends you the payment schedule. It's one component of your Eigenkapital.

In Germany, there's no separate "deposit on exchange" stage the way some other property markets work. The Notartermin (appointment at the notary) is the binding moment. Once the contract is signed and read aloud, you're committed. The notary will then coordinate payments according to a schedule, and the full purchase price (including any mortgage funds) is paid in one or more instalments.

The practical consequence: when a bank asks about your Eigenkapital, they want to see the total picture. When the notary sends you the payment instructions, you're dealing with the Anzahlung. Keep the two concepts separate in your planning.

The full picture: what your total capital needs to cover

The equity requirement for a mortgage in Germany has two distinct parts, and confusing them is where most buyers get tripped up.

Part one is the portion of the purchase price you pay yourself. If the bank finances 80%, you cover the remaining 20%. This part reduces the bank's risk and determines your loan-to-value ratio.

Part two is the Nebenkosten. These sit entirely outside the mortgage. No mainstream German lender will roll notary fees or property transfer tax into your loan. You pay them from savings, full stop.

Both parts must be in place before the bank says yes. Having 20% of the purchase price but no money for Nebenkosten means you don't have enough.

What the bank is actually looking at: Beleihungsauslauf (loan-to-value ratio)

German banks assess lending risk using the Beleihungsauslauf (loan-to-value ratio, or LTV). Most will lend up to 80% of the property's value, and some will stretch to 90% for strong applicants.

There's one catch that surprises buyers: the bank bases its LTV on its own internal valuation, the Beleihungswert, not on the price you agreed with the seller. The Beleihungswert is typically conservative. If you agreed to pay €400,000 but the bank values the property at €370,000, it will lend up to 80% of €370,000 (€296,000), not 80% of €400,000. That leaves you covering a bigger gap from your own pocket.

You can't influence the Beleihungswert directly, but you should know it exists. If you're stretching your budget, factor in the possibility that the bank's valuation comes in lower than the asking price.

Nebenkosten: the costs that must come entirely from your savings

Nebenkosten are the purchase costs that have nothing to do with the property's price. They go to the tax office, the notary, the land registry, and potentially the estate agent. Forgetting to budget for them is the single most common mistake buyers make.

Depending on the federal state and whether an agent is involved, Nebenkosten range from roughly 9% to 15% of the purchase price. On a €400,000 property, that's between €36,000 and €60,000 from your own savings, before you even think about the 20% equity the bank wants.

For a full explanation of how real estate financing works in Germany, see our guide to real estate financing.

Breaking down the Nebenkosten: what you'll pay on top of the purchase price

Every property purchase in Germany involves at least three mandatory costs. A fourth applies if an estate agent is involved.

• Grunderwerbsteuer (property transfer tax): 3.5%–6.5% of the purchase price, depending on the Bundesland (federal state). This is the single largest ancillary cost. It's paid to the tax office (Finanzamt), and the purchase cannot be completed in the land register until it's settled.

• Notarkosten (notary fees): roughly 1.0%–1.5% of the purchase price. Every property transaction in Germany must be notarised. The Notar (notary) drafts the contract, reads it aloud to both parties, and handles the legal transfer process. You cannot skip this step.

• Grundbucheintragung (land register entry fee): roughly 0.5% of the purchase price. The Grundbuch (land register) is the official government record of who owns a property and what charges exist on it. Your ownership is only legally complete once you're entered there.

• Maklerprovision (estate agent commission): 0%–3.57% for the buyer. Since a legal change in 2020, if the seller hired the agent, the seller must pay at least half the total commission. In many transactions, the buyer's share is 3.57% (including VAT). If you find the property without an agent, this cost drops to zero.

How Grunderwerbsteuer varies by state

The Grunderwerbsteuer rate is set by each Bundesland individually. The difference between the cheapest and most expensive states is significant: 3.5% vs. 6.5%, which on a €400,000 property means €14,000 vs. €26,000. That's a €12,000 difference for the same house.

As of 2026, the rates are:

Other states fall between 5.0% and 6.5%. Rates can change, so verify the current rate for your target state before you finalise your budget. A quick search for "Grunderwerbsteuer [state name] 2026" will give you the latest figure.

A realistic total: worked example at three price points

These examples assume a 20% down payment, a Grunderwerbsteuer rate of 6% (a common mid-range figure), notary and land register fees of 2%, and an estate agent commission of 3.57% on the buyer's side. Your actual Nebenkosten will vary.

Example 1: Apartment at €250,000

That's roughly 31.5% of the purchase price.

Example 2: House at €400,000

That's roughly 31.5% of the purchase price.

Example 3: Property at €600,000

That's roughly 31.5% of the purchase price.

If you buy in Bavaria (3.5% tax) without an agent, the Nebenkosten drop to about 6%, and total capital required falls to around 26%. If you buy in Brandenburg (6.5% tax) with an agent, total capital rises towards 32%. The range is real, and it matters.

These are illustrative examples. Your actual costs depend on your federal state, whether an agent is involved, and the specific property. Get a personalised calculation before committing.

What counts as Eigenkapital? (And what doesn't)

German banks care not just about how much equity you have, but where it comes from and how liquid it is. For buyers who've moved to Germany from another country, this part often involves more paperwork than expected.

Savings, investments and property you already own

The most straightforward form of Eigenkapital is cash in a bank account, whether German or foreign. Fixed-term deposits (Festgeld) and savings accounts count at face value.

Securities portfolios (shares, ETFs, bonds) also count, but most lenders apply a valuation haircut. They might count a stock portfolio at 60–80% of its current market value, because share prices can fall between the application date and the purchase date.

If you already own property, the existing equity in that property (current value minus remaining mortgage) can also count as Eigenkapital. Some buyers use this to secure a second property, though lenders will want an up-to-date valuation.

Can savings from your home country count?

Yes, overseas savings can count as Eigenkapital in Germany. But the bank will want documentation.

Expect to provide bank statements going back three to six months, showing the account balance and the origin of the funds. If the statements aren't in German or English, you may need certified translations. The key document lenders ask for is a Herkunftsnachweis (proof of origin): evidence that the money came from legitimate sources like salary, savings or a property sale.

If your savings are in a non-euro currency, the bank will look at the euro-equivalent and may apply a buffer for exchange rate fluctuation. If the pound or dollar weakens between your application and the purchase date, you could end up with less equity than planned. Build a margin of 5–10% into your currency conversion estimates.

Gifts from family and the Schenkung rules

Gifts from family members (a Schenkung) can count as Eigenkapital, and many buyers rely on them, especially for the Nebenkosten. Banks will accept gift money, but they'll want a written gift declaration (Schenkungserklärung) confirming that the money does not need to be repaid. If the bank suspects the gift is actually a loan, it won't count as equity.

Be aware that large gifts may trigger Schenkungsteuer (gift tax). The tax-free allowance depends on the relationship between giver and receiver: €400,000 from a parent to a child, €200,000 from a grandparent, and €20,000 from a non-relative, over a ten-year period. If the gift exceeds the allowance, the excess is taxed. Speak to a tax adviser (Steuerberater) before counting on a large family gift.

Does a KfW loan count as equity?

No. A KfW loan is still debt, and banks treat it as such. It doesn't replace the Eigenkapital the bank requires you to have.

That said, a KfW loan can still be useful. Because KfW programmes often carry lower interest rates or include a repayment bonus (Tilgungszuschuss), they can reduce the amount you need to borrow from a commercial bank. In some cases, this makes the overall financing more affordable and easier to approve.

For a full overview of the KfW Home Ownership Program and how it works, see our dedicated guide.

Can you buy with no down payment? 100% financing in Germany explained

100% financing (Vollfinanzierung) exists in Germany, but it's rare, expensive and comes with conditions that rule out most buyers.

In a Vollfinanzierung, the bank finances the entire purchase price. You still need to cover the Nebenkosten yourself, so the term "0% down payment" is misleading. Even with 100% financing, you're paying 9–15% of the purchase price from your own pocket. True zero-capital-required purchases are essentially unavailable.

When 100% financing is sometimes possible

A small number of banks will consider 100% financing for buyers who meet all of the following conditions:

• High, stable income: typically a permanent employment contract (unbefristeter Arbeitsvertrag) with a generous salary
• Clean Schufa record: no negative entries, no payment defaults
• Low-risk property: in a location with strong market fundamentals (a city centre apartment, not a rural property in a shrinking region)
• Low other debts: no significant car loans, consumer credit or existing mortgages

Even when all boxes are ticked, the interest rate will be meaningfully higher than for a buyer bringing 20% equity. The bank is taking on more risk, and it prices that risk into your monthly payment, for the entire life of the loan.

The risks of going in with minimal equity

Higher interest rates are the most obvious cost. On a €400,000 loan, even a 0.3–0.5 percentage point increase in the interest rate translates to tens of thousands of euros in additional interest over 15–20 years.

The less visible risk is negative equity. If property values fall, and they can, you may owe more than the property is worth. This becomes a real problem when your Zinsbindung (fixed interest rate period) expires and you need to refinance. A bank looking at a property worth less than the outstanding loan balance will offer worse terms, or may decline to refinance altogether.

Going in with minimal equity also leaves no financial cushion. Unexpected repair costs, a period of unemployment, or a delay in the purchase process can all create pressure that's easier to absorb when you have savings left over after closing.

How much should you save? Three scenarios with real numbers

Planning what to save is easier when you can see the numbers for properties in different price ranges and locations. These scenarios use a 20% down payment and location-specific Nebenkosten.

Scenario 1: €250,000 apartment in Leipzig (Saxony)
Grunderwerbsteuer in Saxony: 5.5%. No agent involved.

Scenario 2: €400,000 house in a mid-size city (Hesse)
Grunderwerbsteuer in Hesse: 6%. Agent involved, buyer pays 3.57%.

Scenario 3: €650,000 property in Munich (Bavaria)
Grunderwerbsteuer in Bavaria: 3.5%. Agent involved, buyer pays 3.57%.

Notice that Munich, despite having Germany's lowest property transfer tax rate, still requires the most capital in absolute terms because property prices are much higher.

Why your savings target should be higher than the minimum

Banks don't just check whether you have exactly enough money for the down payment and Nebenkosten. They also look at what's left over.

A buyer who spends every last cent on closing costs and has nothing remaining is a higher risk in the bank's eyes. If the washing machine breaks or a job change delays a salary payment, there's no buffer. Most lenders want to see that you'll still have some liquidity after the purchase, typically the equivalent of three months' net income.

Aiming for the minimum plus a three-month buffer gives you a stronger application and personal financial security. It also protects you if the Notartermin is delayed, which happens more often than you'd expect, or if exchange rate movements reduce the euro value of foreign savings.

Mortgage requirements in Germany: what lenders check beyond the down payment

Having enough equity is necessary, but it's only one part of the bank's decision. The mortgage application process involves a full assessment of your financial situation.

EU citizens, permanent residents, and non-EU buyers

If you're an EU citizen or hold a permanent residence permit (Niederlassungserlaubnis), most German banks will treat your application the same as a German national's. The process and requirements are identical.

Non-EU buyers on a temporary residence permit (Aufenthaltserlaubnis) face more scrutiny. Banks want reassurance that you'll stay in Germany long enough to repay the loan. They'll look at the type of permit, the likelihood of renewal, and your employment stability. It's not impossible to get a mortgage on a temporary permit, but fewer banks will consider it, and you may need to provide more documentation or accept slightly less favourable terms.

Income, employment type, and Schufa

German lenders evaluate three main factors beyond your equity:

Income stability. A permanent employment contract (unbefristeter Arbeitsvertrag) is the gold standard. If you're still in a probationary period (Probezeit), most banks will wait. Selbstständige (self-employed) buyers can get mortgages, but they'll need to provide two to three years of tax returns and business accounts. Your salary typically needs to be paid into a German bank account.

Employment history. Lenders prefer to see at least six to twelve months in your current role. Frequent job changes aren't disqualifying, but they weaken the application.

Schufa record. The Schufa (Germany's credit bureau) tracks your payment history on loans, phone contracts, and other obligations. If you're new to Germany, you may have no Schufa record at all. That's different from having a bad one, but it means the bank has less data to work with. Some lenders compensate by requiring a longer employment track record or more equity. You can request your free annual Schufa report (Schufa-Datenkopie) to check what's on file before you apply.

Do you need to show the down payment before or after finding a property?

Before. In practice, you'll want a Finanzierungsbestätigung (financing confirmation) from a bank or mortgage broker before you start making serious offers. This is a preliminary statement saying the bank is willing to lend you a certain amount, subject to a property valuation.

To get this confirmation, the bank will ask for recent bank statements proving your equity exists. You can't simply promise the money will appear later. If your savings are abroad, start gathering statements and translations well before you begin property viewings. Showing up to a viewing without financing confirmation puts you at a disadvantage, especially in competitive markets where sellers choose between multiple interested buyers.

Common mistakes expats make with down payments in Germany

These are real-world problems that come up repeatedly, and each one is avoidable with a bit of advance planning.

Counting only the purchase price, not the Nebenkosten. If you budget €80,000 for a 20% down payment on a €400,000 property and forget about the Nebenkosten, you're short by €40,000 or more. Always calculate your total capital requirement, not just the equity portion.

Assuming overseas savings will be accepted without documentation. They can count, but the Herkunftsnachweis (proof of origin) process takes time. Start collecting bank statements and organising translations months before you need them.

Ignoring exchange rate risk. If your savings are in pounds, dollars, or another non-euro currency, the euro value on the day you transfer may be lower than when you last checked. Build in a 5–10% buffer and consider converting funds early if the rate is favourable.

Treating the KfW loan as equity. It's debt, and banks classify it as such. A KfW loan can reduce your commercial borrowing, but it doesn't replace the Eigenkapital the bank requires.

Not having a liquidity buffer. Using every euro for the down payment and Nebenkosten leaves you financially exposed. If the Notartermin is delayed, if unexpected costs arise, or if an appliance in your new home needs replacing on day one, you need cash available.

Underestimating how long bank processes take. Getting a Finanzierungsbestätigung (financing confirmation letter) can take days to weeks, depending on the lender and the complexity of your situation. Arriving at a viewing without one makes you a weaker buyer in the seller's eyes. Start the conversation with a bank or broker early, ideally before you begin your property search.

For broader context on what homeownership in Germany involves, our homeownership basics guide walks you through the full process. And if you're still weighing whether buying makes sense for your situation, our buy vs. rent comparison can help you decide.

The down payment for a house in Germany is larger than most people initially expect, but it's a predictable number once you know what goes into it. Start with 20% of your target purchase price, add the Nebenkosten for your federal state, include a three-month buffer, and you have a realistic savings target. The earlier you start gathering documentation, especially if your savings are abroad, the smoother the process will be when you find the right property.

As of August 2026. This article provides general information and does not constitute financial, tax or legal advice. For your specific situation, consult a mortgage adviser, notary or tax professional. Legal conditions and tax rates can change.