Getting a mortgage in Germany as a non-resident: deposit, rates, fixing periods and costs

Germany is a stable, transparent market, but its banks lend to non-residents more cautiously than to locals. Our general guide to mortgages for non-residents covers the basics across countries; this one goes deeper on Germany. All figures below are indicative, drawn from 2026 lender and adviser sources, and change with the market and the individual bank.

How much German banks lend non-residents

• Residents with stable German employment can often borrow with a deposit of 10–20%. Non-residents are asked for much more.
• One 2026 guide reports about 30–40% down (maximum loan-to-value around 60–70%) for non-resident EU citizens, and 40–50% down (LTV around 50–60%) for non-EU non-residents. Treat these as typical ranges, not rules: each bank sets its own policy.
• Reportedly, a few mainstream banks and Sparkassen lend to non-resident EU buyers, and brokers such as Interhyp place many of these loans. Non-EU buyers without German income or residence find it much harder and usually need a deposit of about half the price.
• The overall loan term is commonly 25–35 years, but the interest rate is only guaranteed for the fixing period (see below).
• Banks assess income in the country where you earn it. Some apply a discount to foreign income because wages are harder to enforce abroad, so the loan you can raise may be smaller than your salary suggests.

Rates and fixing periods in 2026

German mortgages are mostly fixed-rate with a Zinsbindung, a period during which the rate cannot change. Typical fixing periods are 5, 10, 15 or 20 years, and after it ends you refinance (Anschlussfinanzierung) at whatever the market then offers. A 2026 guide puts ten-year fixed rates for residents at roughly 3.5–4.5% in mid-2026, and non-residents at roughly 30–80 basis points more, so about 3.8–5.3%. Rates move with the market, so ask a broker for a live quote.

• Sondertilgung is the right to make extra repayments each year without penalty. It is usually worth negotiating (a figure of 5–10% of the loan per year is commonly mentioned) and it must be written into the contract.
• Early repayment outside those allowances can trigger a compensation payment to the bank. German law (section 489 of the Civil Code) lets you terminate a loan with six months' notice after ten years from full disbursement, with no penalty, whatever the agreed fixing period.

Documents the bank will ask for

• Passport and German tax ID (Steuer-ID)
• Tax returns from your home country (commonly up to three years) and recent payslips, or accounts if you are self-employed
• Around six months of bank statements showing where the deposit comes from
• A credit report. German banks use SCHUFA, and for a foreign borrower they typically accept an equivalent report from your home country
• Property documents: the sales exposé, the land register extract (Grundbuchauszug) and the energy certificate (Energieausweis)

Foreign documents may need certified translation. Your own lawyer or broker can tell you what a specific bank will accept.

What you pay on top of the deposit

• Real estate transfer tax (Grunderwerbsteuer) is set by each federal state and runs from 3.5% to 6.5% of the price.
• Notary fees are reported at about 1.5% and the land registry at about 0.5%.
• Agent commission: since December 2020, when the seller hired the agent, the buyer can be charged at most half of the commission, and only once the seller has paid their share. Reported buyer shares are up to roughly 3.57% including VAT in many states.
• In total, buyers commonly budget about 10–13% of the price for purchase costs, on top of the deposit.
• Interest on a loan for your own home is generally not tax-deductible. Interest on a loan for a property you let out can generally be set against the rental income, subject to your tax position, so check with a German tax adviser.

Pitfalls to avoid

• Assuming resident terms. A non-resident deposit of 30–50% is realistic, so plan the whole budget around it.
• Ignoring the refinancing risk. If you fix for 10 years on a 30-year loan, the rate after year 10 depends on the market then.
• Skipping the Sondertilgung clause. If it is not in the contract at signing, you may not be able to add it later.
• Counting on your foreign income being recognised in full. Ask the bank how it treats your currency and employer before you commit to a purchase.
• Signing the purchase contract at the notary before financing is secured. Once signed, the obligation to buy is binding.

FAQ

Can a non-resident get a German mortgage? Yes, mostly EU buyers with a solid income, but on stricter terms than residents, and non-EU buyers find it much harder. How much deposit do I need? Plan on about 30–40% for EU non-residents and up to around half for non-EU buyers, plus roughly 10–13% for purchase costs. What is Zinsbindung? The period for which the interest rate is fixed. Do I need SCHUFA? You need a credit report, and a home-country equivalent is typically accepted for a foreigner. Can I repay early? Within the Sondertilgung allowance without penalty; beyond it a compensation payment may apply, and after ten years you have a statutory right to terminate with six months' notice.

How we help

We connect buyers with brokers and banks that lend to non-residents and structure the purchase around realistic financing. This is general information, not financial, tax or legal advice: rates, LTV limits and taxes change and differ by lender and federal state, so confirm current terms with a licensed broker and a German lawyer or notary before committing.