How much can I borrow for a mortgage in Germany?

German banks typically lend up to 4–5 times your annual net income, but the actual number depends on your monthly repayment capacity, the interest rate you lock in and how much equity you bring to the table. If you're trying to figure out how much you can borrow for a mortgage in Germany, this article gives you the exact logic banks use, with real income examples, the key factors that affect your limit and practical next steps. The system works somewhat differently if you're an international buyer or expat, and those differences come up throughout, not just in a single section at the end.

How much can you realistically borrow? The short answer

German banks typically lend up to 4–5 times your annual net income, provided your total monthly loan repayment does not exceed roughly 35–40% of your Nettoeinkommen (net monthly income, after taxes and social contributions). Most banks also want a Beleihungsauslauf (loan-to-value ratio, or LTV) of no more than 80%, meaning you'll need at least 20% of the property's value as equity.

Where exactly you land in that range depends on five main factors:

• Your net monthly income and how stable it is
• Your existing debts (car loans, personal loans, other obligations)
• Your Schufa score (Germany's credit rating)
• Your employment type (permanent contract, fixed-term, freelance, civil servant)
• The amount of Eigenkapital (equity) you can put down

Each of these gets its own section below. But first, let's look at the two calculations that matter most.

The income-to-mortgage ratio German banks actually use

German banks don't start with a headline loan amount. They start with your monthly budget. The rule most banks apply: your total monthly mortgage repayment (interest plus principal) should not exceed 35–40% of your net monthly income.

Example calculation: If your net income is €3,500 per month, the bank will typically allow a maximum monthly repayment of around €1,225 (at 35%) to €1,400 (at 40%).

This number is more useful than the total loan amount because it's what you'll actually feel every month. A loan of €350,000 sounds abstract. A monthly payment of €1,300 is concrete. And it's the monthly figure the bank cares about when deciding whether to approve your application.

If you have existing debts, the bank subtracts those payments first. So if you're already paying €300 per month on a car loan, your available mortgage repayment capacity drops to €925–€1,100 in the example above.

For expats and international buyers, some banks apply the lower end of the range (closer to 35%) when income documentation comes from outside Germany or is paid in a foreign currency.

From monthly repayment to total loan: how the maths works

Once you know your maximum monthly repayment, you can work backwards to a loan amount. The calculation depends on two things: the interest rate and the loan term.

Example calculation: Say your maximum monthly repayment is €1,200. At a 3.5% interest rate with 2% initial repayment (Anfangstilgung), the combined annual rate is 5.5% of the outstanding loan. That monthly payment supports a loan of roughly €262,000.

At 3.0% interest with the same 2% initial repayment, the same €1,200 per month supports roughly €288,000.

The difference: about €26,000 in borrowing power, just from a 0.5 percentage point change in the interest rate. This is why rates matter so much, and why the section on current rates below is worth reading carefully.

Your actual terms depend on your creditworthiness, the loan-to-value ratio and the fixed-rate period you choose. These examples are for orientation only.

Mortgage affordability by salary: real examples

The table below shows approximate maximum loan amounts at different income levels. The assumptions: a 3.5% interest rate, 2% initial repayment, 20% Eigenkapital (equity), and no existing debts.

The "property budget" column adds your equity on top of the loan. But remember: Nebenkosten (additional purchase costs) of roughly 7–12% come on top of the property price and usually need to be paid from savings, not from the loan. A €400,000 property doesn't cost €400,000. It costs closer to €430,000–€448,000 once you include the tax, notary and any agent fees.

What changes the numbers:

• More equity raises your property budget without increasing the loan, and typically gets you a lower interest rate (because the LTV drops).
• A longer fixed-rate period (e.g. 15 or 20 years instead of 10) often comes with a slightly higher rate, which reduces your maximum loan.
• Existing debts reduce your available monthly repayment and, by extension, your maximum loan.

If your income is paid in a foreign currency, or you earn income outside the EU, some banks apply a haircut of 10–20% on that income when calculating your affordability. This isn't universal, but it's common enough to factor into your planning.

These figures are indicative examples as of August 2026. Individual bank assessments will vary based on your full financial profile.

What German banks look at when they assess you

The monthly repayment ratio is the starting point, but it's not the whole picture. Banks run a structured assessment that covers several areas. Knowing what they look at, and in what order, helps you prepare properly.

Your Schufa score — Germany's credit rating system

The Schufa is Germany's main credit rating agency. It tracks your credit history in Germany: loans, credit cards, mobile phone contracts, missed payments, and how many credit inquiries you've made recently. Banks use your Schufa score as a quick risk indicator.

The score runs from 0 to 100, with higher being better. Most banks want to see a score above 90 for a mortgage. Scores above 95 are considered very good. Anything below 85 will raise questions, and a score below 80 may make getting a mortgage difficult.

What can hurt your score:

• Missed or late payments (even small ones, like a phone bill)
• Multiple credit inquiries in a short period
• Unpaid debts that went to collections
• Having too many open credit lines

If you're new to Germany, you may have no Schufa record at all. This doesn't automatically disqualify you, but the bank can't assess your payment history the way it normally would. In practice, the bank will look more carefully at your income stability, employment contract and equity. Some banks are more comfortable with this than others, which is one reason working with a mortgage broker who knows which lenders serve international buyers can save you time.

Practical tip: You can request your Schufa record for free once a year at meineschufa.de (look for the "Datenkopie" option). Do this a few months before applying for a mortgage. If there are errors, you can dispute them, but corrections take time.

Employment type and income stability

German banks treat employment types very differently, and this is one area where the system can feel rigid.

Permanent employees with an unbefristeter Arbeitsvertrag (open-ended employment contract) are assessed most favourably. If you've passed your probation period (Probezeit, usually six months), you're in the strongest position.

Fixed-term contracts (befristeter Arbeitsvertrag) are trickier. Banks worry about what happens when the contract ends. If your contract has less than 12 months left, some banks won't lend at all. Others will, but at a lower maximum amount.

Freelancers and self-employed (Selbstständige) face the highest scrutiny. Banks typically want to see two to three years of tax assessments (Steuerbescheide) showing stable or growing income. Your income is usually averaged, and banks may discount your best year if it looks like an outlier.

Civil servants (Beamte) get the most favourable treatment of all, because their employment is effectively permanent and their income is guaranteed by the state.

If you're an expat on an employer-sponsored relocation, your situation may not fit neatly into these categories. Some banks treat your income as equivalent to a permanent employee's, provided you can show a multi-year contract. Others are less flexible. This is another case where a broker familiar with international profiles is genuinely useful.

How your existing debts affect the calculation

Every existing monthly debt obligation reduces the amount you can borrow. The bank subtracts your current obligations from your net income before applying the 35–40% rule.

Example calculation: Your net income is €5,000 per month. You're paying €400 per month on a car lease and €150 per month on a personal loan. The bank treats your "available" income as €4,450. At 35%, your maximum mortgage repayment would be €1,558, not the €1,750 you'd get without the debts. That difference reduces your maximum loan by roughly €42,000.

The bank will find these obligations regardless of whether you mention them. They show up in the Schufa and in the bank statements you'll need to provide. So list everything before you apply. If you can pay off a smaller loan before starting the mortgage process, it may meaningfully increase your borrowing power.

How much Eigenkapital do you need in Germany?

The standard expectation is 20–30% of the purchase price in Eigenkapital (equity or down payment). On top of that, you'll need enough savings to cover Nebenkosten (additional purchase costs), which typically run 7–12% of the purchase price. Those costs usually cannot be financed through the mortgage.

100% financing (borrowing the full purchase price) does exist, but it's rare and expensive. Banks charge significantly higher interest rates when the LTV exceeds 80%, because the loan is riskier for them. And even with 100% financing, you'll still need to cover Nebenkosten from savings, so the term "100% financing" is somewhat misleading. It's more like "100% of the property price, but not 100% of the total cost."

Crossing the 80% LTV threshold typically means a higher interest rate, sometimes by 0.3–0.5 percentage points. On a large loan over a long period, that adds up to tens of thousands of euros in extra interest.

What counts as equity — and what doesn't

Banks want to see genuinely liquid or near-liquid assets:

• Cash savings in bank accounts
• Investments (securities, funds) that can be liquidated
• An existing property you own, either as equity or as additional collateral
• A Bausparvertrag (a German building savings contract) that has reached its allocation phase

What typically does not count:

• Pension entitlements you can't access yet
• Money that has been promised but not yet received (an expected inheritance, for example)
• Assets that are locked up or illiquid

Gifts from family members can count as equity, but banks will want documentation. At a minimum, expect to provide a written statement from the family member confirming the gift and proof that the money has arrived in your account. Some banks also want a declaration that the gift does not need to be repaid.

Nebenkosten: the costs that eat into your budget before you start

Nebenkosten (additional purchase costs) are the expenses on top of the property price that most buyers underestimate. They include:

• Grunderwerbsteuer (property transfer tax): 3.5–6.5% of the purchase price, depending on the federal state. Bavaria charges 3.5%, while states like North Rhine-Westphalia, Schleswig-Holstein and Brandenburg charge 6.5%.
• Notary and land register fees: roughly 1.5–2% of the purchase price. These cover the Notar (notary) who handles the purchase contract and the entry in the Grundbuch (land register).
• Estate agent commission (Maklerprovision): up to 3.57% from the buyer's side in some federal states, though since 2020, the buyer's share can never exceed the seller's share.

In total, expect to pay 7–12% of the purchase price in Nebenkosten.

Example: On a €400,000 property, Nebenkosten could range from €28,000 to €48,000. This money needs to come from your savings, in addition to your down payment. So if you're putting down 20% equity (€80,000) and Nebenkosten are 10% (€40,000), you need €120,000 in savings before you borrow a single euro.

For a full breakdown of what you'll pay on top of the purchase price, see our guide to real estate financing in Germany.

How current mortgage rates affect how much you can borrow

Interest rates have a direct, large impact on your maximum loan, and this connection is often overlooked. The logic is simple: when rates rise, the same monthly repayment buys a smaller loan.

Example calculation: Assume your maximum monthly repayment is €1,200.

The difference between a 3.0% and a 4.0% rate is roughly €48,000 in borrowing power, from the same monthly payment. In a rising rate environment, this means your budget can shrink quickly.

German mortgages typically come with a Zinsbindung (fixed-rate period) of 5, 10, 15 or 20 years. During this period, your rate stays the same regardless of what happens in the broader market. After the fixed period ends, you refinance at whatever rates are available then. A longer Zinsbindung gives you more certainty but usually comes with a slightly higher initial rate.

As of August 2026, rates for a 10-year fixed period are in the range of roughly 3–4% for borrowers with good credit and 20% or more equity. But rates change frequently, and your personal rate depends on your LTV, credit profile and the bank you choose. Get a personal quote before planning around any specific number.

Your actual rate depends on your individual situation. The figures above are for orientation.

Can you get a mortgage in Germany as a foreigner or expat?

Yes. Foreigners can and do get mortgages in Germany. There's no legal restriction that prevents non-Germans from buying property or taking out a mortgage. But the practical reality varies depending on your residency status, how long you've been in Germany and where your income comes from.

EU citizens with a right of residence in Germany face very few additional barriers compared to German nationals. If you have a stable income and a reasonable Schufa history, you're assessed much the same way.

Non-EU citizens face more scrutiny, but they're not excluded. The key question for the bank is risk: how confident can they be that you'll stay in Germany and keep earning? A permanent residence permit (Niederlassungserlaubnis) helps significantly. A work visa tied to a specific employer is assessed more cautiously, particularly if it's up for renewal soon.

Some German banks simply don't lend to non-residents or buyers without a German address. Others actively serve international clients. This fragmentation is one reason many expat buyers work with a mortgage broker rather than approaching banks directly.

What documentation you'll need as an international buyer

The documentation requirements are similar to those for German buyers, with a few additions. Expect to provide:

• Gehaltsabrechnungen (payslips): usually the last three months
• Steuerbescheide (tax assessments): one to two years, or the equivalent from your home country
• Bank statements: the last three to six months, showing savings and regular income
• Employment contract (Arbeitsvertrag): the bank will check whether it's permanent or fixed-term
• Passport or ID card
• Meldebescheinigung (proof of registered address in Germany): obtained from your local Bürgeramt (citizens' office)
• Schufa consent: the bank will request your Schufa report directly, but you'll need to sign a consent form

If your documents are in a language other than German or English, the bank will usually require certified translations. This adds cost and time, so start the process early if your employment contract or tax documents are in another language. Some banks are stricter about this than others.

The documentation process can feel overwhelming, particularly if you're dealing with paperwork from two countries simultaneously. It's a genuinely complex part of buying property as an international buyer, and it's worth setting aside time to get everything organised before you approach a bank.

EU vs. non-EU residents: what changes

EU citizens with a permanent right of residence or a job in Germany are treated very similarly to German nationals. Your income documentation is accepted at face value, and your employment status is assessed using the same categories (permanent, fixed-term, self-employed).

Non-EU citizens with a residence permit tied to employment face more uncertainty in the bank's eyes. The bank will consider:

• How long the residence permit is valid
• Whether renewal is likely (a strong employer and a critical role help)
• Whether your income is paid in euros or a foreign currency (foreign currency income may be discounted by 10–20%)
• Whether you have a Schufa history or not

Non-residents applying from abroad have the most restricted options. Most mainstream German banks won't lend in this scenario. You'd typically need to work with a specialist broker or a bank that caters specifically to international buyers. Expect a higher equity requirement (often 40–50%) and a higher interest rate.

If your situation doesn't fit a standard category, a broker who works with international clients regularly can tell you which banks are realistic options before you spend time on applications that won't go anywhere.

Getting a Finanzierungsbestätigung — your mortgage pre-approval

A Finanzierungsbestätigung (mortgage pre-approval certificate) is a written confirmation from a bank or lender stating that they are, in principle, willing to finance your purchase up to a certain amount. It's not a binding loan offer, but it carries real weight.

In Germany, sellers and estate agents routinely expect to see a Finanzierungsbestätigung before taking your offer seriously, particularly in competitive markets. Without one, your offer may simply be set aside in favour of a buyer who can demonstrate financing.

There are two types:

• A soft pre-approval is quick (sometimes within 24–48 hours) and based largely on self-reported information about your income and savings. It's useful for signalling seriousness to a seller, but the bank has not verified your documents yet.
• A formal pre-approval involves the bank reviewing your actual documentation: payslips, tax assessments, bank statements, Schufa report. It takes longer (typically one to two weeks) but carries more weight because the bank has done its due diligence.

Getting a formal pre-approval does trigger a Schufa-Anfrage (credit inquiry), which shows up on your record. One inquiry for a mortgage is normal and won't hurt your score. But applying to many banks in a short period can leave multiple inquiries, which may raise questions. This is another reason some buyers use a broker: the broker submits to one or two suitable lenders rather than casting a wide net.

When to get one: Ideally, before you start viewing properties seriously. Knowing your approved budget means you can make credible, fast offers when you find the right place.

Use our mortgage calculator to check your numbers

You've seen how German banks calculate your borrowing limit. Now put your own numbers in. The Justhome mortgage calculator takes your income, equity, existing debts and preferred loan term and gives you a personalised estimate of what you could borrow and what your monthly repayment would look like.

It won't replace a formal bank assessment, but it gives you a solid starting point so you know your range before you approach a lender. You can adjust the inputs to see how different equity levels, interest rates or repayment rates change the picture.

What to do once you know your budget

You've worked through the numbers. You have a rough idea of what you can borrow and what kind of property that translates into. The next steps:

1. Get your documents together. Payslips, tax assessments, bank statements, employment contract, ID. If anything needs translation, start that now.
2. Check your Schufa. Request your free annual report at meineschufa.de. If there are errors or old entries that should have been removed, dispute them before you apply.
3. Get a Finanzierungsbestätigung. Approach a bank or broker for a pre-approval so you can make credible offers.
4. Start your property search with a real budget. Your budget is your maximum loan plus your equity, minus Nebenkosten. That last part is the number most people forget.
5. Come back to confirm financing once you have a specific property. The bank will issue a formal loan offer once you have a concrete purchase price and property details.

Once you're ready to move forward, our guide on buying a house in Germany walks you through the full process step by step.