Compare Mortgages in Germany

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24 live offers compared from 15 providers, from 3.50% anfänglich. Updated daily.

What is Mortgages in Germany?

A mortgage in Germany, known as a Baufinanzierung or Immobilienfinanzierung, is a long-term loan secured against property that lets you buy or build a home. Compared with some other countries, the German market is conservative and stability-oriented: borrowers typically fix their interest rate for many years and commit to a steady repayment plan.

The defining features are the Sollzinsbindung, the period for which the interest rate is fixed, and the Tilgung, the annual repayment rate that gradually pays down the loan. Because Germans often buy later and put down sizeable deposits, loan-to-value ratios tend to be lower than in more credit-driven markets.

How the German market works

Financing is arranged directly with banks or through brokers. Interhyp is the best-known broker platform, comparing conditions across hundreds of lenders, while banks such as Commerzbank, Deutsche Bank, the Sparkassen, DKB, ING Germany, Bank of Scotland Deutschland and regional cooperatives like Berliner Volksbank lend on their own books.

Lenders assess the property's Beleihungswert (mortgage lending value) and set terms by loan-to-value: the more equity you bring, the better the rate. Fixed-rate periods commonly run 5, 10, 15 or 20 years. After 10 years, German law gives borrowers a right to repay with limited notice regardless of the agreed fixation. A Bausparvertrag (building-savings contract) is often used alongside a mortgage to lock in future rates or fund repayment.

Benefits

Long rate certainty — Fixing the Sollzins for 10 or 20 years protects your monthly payment from interest-rate swings.

Structured repayment — A defined Tilgung means the balance falls predictably, and many lenders allow you to adjust the repayment rate.

Lower rates with more equity — Bringing a larger deposit reduces the LTV and typically unlocks better conditions.

Statutory early-exit right — After 10 years you can repay the loan with six months' notice, even within a longer fixation.

How to choose

Begin with your total budget, remembering the Kaufnebenkosten (purchase side costs): Grunderwerbsteuer (real-estate transfer tax, which varies by federal state), notary and land-registry fees, and any agent commission. These often add well over 10 percent to the purchase price and usually cannot be financed.

Then weigh the fixed-rate period against your plans and rate expectations, and choose a Tilgung high enough to clear the debt in a sensible timeframe. Compare the effective annual rate (effektiver Jahreszins) rather than the headline rate, check flexibility such as special repayments (Sondertilgungen), and consider whether a broker like Interhyp or a direct bank offer suits you better.

Leading providers in Germany

Interhyp acts as a broker, sourcing conditions from many banks rather than lending itself. Direct lenders include Commerzbank, Deutsche Bank, DKB and ING Germany among the nationals, the regional Sparkassen and cooperative banks such as Berliner Volksbank, and Bank of Scotland Deutschland. This page compares offers across these providers, with loan amounts commonly reaching €200,000 and above for typical purchases.

What it costs

Mortgage rates move with capital markets. At recent levels, fixed rates around 3.5 percent have been representative for standard fixations, though the exact rate depends on the fixation length, your LTV, income and the property. On a €200,000 loan, the monthly payment combines interest and Tilgung, so a higher repayment rate raises the monthly cost but shortens the term and cuts total interest. Always model the remaining balance at the end of the fixation, since most loans are not fully repaid within the first fixed period.

Protections and regulation

Mortgage lending is regulated under German and EU consumer-credit rules, with BaFin supervising the banks. Lenders must run a creditworthiness assessment, and Schufa data feeds into that check. Borrowers receive a standardised information sheet (ESIS) and a 14-day withdrawal right on the loan agreement. The statutory 10-year termination right under the Civil Code is an important protection against being locked into an outdated rate.

Common questions

How much deposit do I need? Many lenders expect you to cover the purchase side costs from savings and ideally some of the price too; more equity means a lower LTV and a better rate.

What happens after the fixed period ends? You refinance the remaining balance (Anschlussfinanzierung) at then-current rates, which is why the Restschuld at fixation-end matters.

Can I overpay? Many contracts allow annual Sondertilgungen up to an agreed limit without penalty; confirm the terms before signing.

Mortgages in Germany — FAQ