How can a foreigner get a mortgage in Germany in 2026?

You can buy your own apartment or house in Germany even without German citizenship. However, obtaining a mortgage depends on your financial situation, immigration status, and the terms set by the specific bank. In 2026, buyers will need to consider not only interest rates but also significant additional costs that can substantially increase the budget for the purchase. We’ll explain which foreigners can qualify for a mortgage in Germany, how much financing costs, and how to prepare for a real estate purchase.

In the previous article, we reported on the most expensive cities in the world to live in in 2026, according to Numbeo.

Are you planning to buy real estate abroad? Before concluding a deal, it is important to consider not only the price per square meter, but also tax liabilities, restrictions for foreigners, title checks, and additional costs. Visit World's real estate lawyers will help you analyze the property, assess legal risks, and accompany you at all stages of the transaction: from the initial consultation to the signing of the contract. Get professional support and confidence in every step.

Can foreigners get a mortgage in Germany in 2026?

Foreigners have the right to purchase real estate in Germany and take out mortgages. German citizenship is not required for this. However, banks assess not only the applicant’s creditworthiness but also the stability of their residence in the country, their sources of income, and their prospects for long-term employment.

The conditions for obtaining a mortgage in Germany may vary depending on the borrower’s immigration status:

- EU citizens typically have a wider range of loan options, especially if they work and reside permanently in Germany.

- Holders of a permanent residence permit (Niederlassungserlaubnis) can expect more favorable treatment from banks due to their stable legal status.

- Foreign nationals with a temporary residence permit (Aufenthaltserlaubnis) can also obtain a mortgage, though the lender may require a larger down payment or additional financial guarantees.

- Non-residents of Germany face a limited selection of banks. Real estate financing for applicants with income from abroad often involves a case-by-case review and stricter conditions.

What requirements do banks impose on foreigners?

The key criterion remains the ability to make regular loan payments. When reviewing an application, banks typically check:

- Income and employment. A stable salary, a permanent employment contract, and a completed probationary period are considered advantages.

- SCHUFA credit history. Negative entries regarding late payments or outstanding debts can complicate the loan process.

- Personal savings. Banks assess the amount of the down payment and the availability of funds to cover associated costs.

- Financial obligations. Existing loans, regular expenses, child support, and other payments are taken into account.

- Immigration status. For citizens of non-EU countries, the type of residence permit and its validity period may be relevant.

To apply, you typically need a passport, proof of income, bank statements, employment documents, and information about real estate. Self-employed individuals may also need to provide tax returns and financial statements covering several years.

It is important to understand that mortgage terms for foreigners in Germany are not standardized across all banks. A rejection from one lender does not mean that financing is impossible. At the same time, even a high income does not guarantee approval if the bank considers the immigration status or source of income to be insufficiently stable.

Previously, we discussed the specifics of renting housing in Germany in 2026: prices per square meter by city.

What are the mortgage rates in Germany in 2026?

In October 2026, mortgage rates in Germany generally exceed 4% per annum. According to the mortgage broker Interhyp, the average benchmark for loans with a 10-year fixed rate is around 4.4–4.5%. By comparison, in September this figure stood at approximately 4.2%.

Specific terms depend on the size of the down payment, credit history, the borrower’s income, and the property’s value. The smaller the portion of the purchase financed by the bank, the more favorable the rate it can typically offer.

In October 2026, the effective annual rates for 10-year fixed-rate loans were:

- 4.22% – if the loan covers less than 70% of the property’s value

- 4.34% – for 80% financing

- 4.62% – if the loan-to-value ratio exceeds 90%

These figures are based on loan offers from October 5–11, 2026, and are not guaranteed rates for every borrower.

For what term can a mortgage rate be fixed?

In Germany, loans with fixed interest rates for 5, 10, 15, or 20 years are common. During this period, the agreed-upon interest rate remains unchanged, even if market conditions change.

At the same time, the fixed-rate period does not necessarily coincide with the loan’s full repayment term. For example, if a mortgage is for 30 years but the rate is fixed for 10 years, after this period ends, the borrower will usually have to negotiate new financing terms for the remaining balance.

That is why, when choosing a mortgage in Germany, it is important to consider not only the initial rate but also the possibility of it increasing in the future.

How much will the monthly mortgage payment be?

Suppose a buyer takes out a loan of 250,000 euros at a fixed rate of 4.4% per annum with an initial principal repayment of 2% per year.

In this case:

- Loan amount – 250,000 euros

- Interest rate – 4.4% per annum

- Initial principal repayment rate – 2% per year

- Estimated monthly payment – 1,333 euros

This is an approximate calculation based on the typical German annuity loan model. Over time, the interest portion of the payment decreases, while the principal repayment portion increases.

In addition, utility bills, insurance, property maintenance, and potential repairs must be added to the monthly payment. Therefore, the homeowner’s actual financial burden will be higher than the mortgage payment alone.

Learn more about the cost of living in Germany in 2026 by following the link.

How much money do you need to get a mortgage in Germany?

Buying real estate in Germany requires significantly more savings than just the down payment.

In addition to their own share of the property’s cost, the buyer must pay taxes, notary fees, and registration fees. Overall, additional costs associated with buying real estate in Germany can amount to approximately 5–12% of the property’s value, depending on the federal state and whether a real estate agent is involved.

What down payment is required for a mortgage?

German banks often recommend having personal funds amounting to 20–30% of the property’s value, as well as a separate budget for associated expenses. This is not a legal requirement; however, a larger down payment typically allows you to secure a more favorable interest rate and reduce monthly payments.

Some banks offer financing of up to 100% of the property’s value, but such loans involve a stricter creditworthiness check. It may be more difficult for foreigners with a temporary residence permit to obtain this type of financing.

What additional costs can a buyer expect?

When applying for a mortgage in Germany in 2026, the following fees must be taken into account:

- Real estate transfer tax (Grunderwerbsteuer) – ranging from 3.5% to 6.5%, depending on the federal state. The lowest rate applies in Bavaria, and the highest in Brandenburg and North Rhine-Westphalia.

- Notary fees and land registry costs (Notar- und Grundbuchkosten)—approximately 1.5–2% of the property’s value.

- Real estate agent’s commission (Maklerprovision)—often around 3.57% of the property’s value for the buyer, if the total commission is 7.14% and is split equally. The actual amount depends on the contract.

- Additional expenses—technical inspection of the property, property appraisal, moving costs, and possible repairs.

Property purchase tax rates are set at the state level. The rules for allocating the real estate agent’s commission for buyers of apartments and single-family homes are also explained by the German Consumer Protection Center (Verbraucherzentrale).

Example of cost calculation for a €300,000 apartment

Let’s consider the purchase of an apartment in Berlin costing €300,000 with a 20% down payment.

- Apartment price – 300,000 euros

- Down payment (20%) – 60,000 euros

- Mortgage loan amount – 240,000 euros

- Real estate transfer tax (6%) – 18,000 euros

- Notary and registration fees (approximately 2%) – 6,000 euros

- Real estate agent’s commission (3.57%) – 10,710 euros

Estimated personal funds required for the purchase: 94,710 €

€60,000 down payment + €34,710 in associated costs

Thus, to purchase an apartment for €300,000, the buyer in this example would need to have nearly €95,000 in personal savings. This amount does not include potential renovation costs, furniture, or a financial reserve.

It’s important to note that banks typically expect associated costs to be covered with personal funds. Therefore, before applying for a mortgage, it’s advisable to calculate the total budget for the real estate purchase rather than relying solely on the listed price.

In our previous article, we discussed the best cities in Germany for expats to live in 2026.

How can a foreigner get a mortgage in Germany?

The process of obtaining a mortgage in Germany usually takes anywhere from a few weeks to several months, depending on the completeness of the documents, the speed of application processing, and the specifics of the deal. Foreign buyers should check the banks’ requirements in advance, as not all lenders work with non-residents or holders of temporary residence permits.

Key steps in applying for a mortgage:

1. Assess your financial capacity. Determine your available budget, the amount of your savings, and a comfortable monthly payment. Take into account the associated costs of purchasing real estate and set aside a reserve for unforeseen expenses.

2. Comparing bank offers. Contact several lenders or a mortgage broker (Baufinanzierungsvermittler). Compare not only interest rates but also the fixed-rate period, the option for early repayment, and refinancing terms.

3. Preparing documents. Banks typically request a passport, a residence permit, proof of income for the last three months, bank statements, and employment documents. You may also need to provide tax returns and information about your personal savings.

4. Selecting a property and submitting an application. After selecting an apartment or house, you provide the lender with information about the property, including its value, technical specifications, and title documents. The bank appraises the property and makes a decision regarding financing.

5. Signing the contracts. Once the loan is approved, the parties draw up the necessary documents. A real estate purchase agreement in Germany must be notarized.

6. Payment and property registration. After the conditions specified in the contract are met, the notary notifies the parties that payment is due. To secure the loan, the bank typically requires the registration of a land charge (Grundschuld). The final transfer of ownership is formalized by entering the buyer’s name in the land registry.

An important detail: Do not sign a notarized real estate purchase agreement without proper confirmation of financing. If the bank denies the loan after the agreement is concluded, the buyer may face serious financial consequences.

According to guidelines from the German Federal Chamber of Notaries, the buyer is generally required to transfer funds only after receiving the appropriate notification from the notary and fulfilling the necessary conditions to safeguard the transaction.

It is also worth checking whether special loan programs offered by the state-owned development bank KfW are available. Some programs provide support for the purchase or energy-efficient renovation of housing, but the availability of financing depends on the property’s characteristics and the applicant’s compliance with established requirements.

Learn more about taxation specifics for foreigners in Germany in 2026 by following the link.

Mortgage or Renting in Germany: Which Is More Advantageous?

The choice between renting and buying real estate depends on housing costs, income, and your plans for living in Germany. Buying an apartment with a mortgage allows you to gradually build equity, but requires a significant initial investment. Renting, on the other hand, offers greater flexibility and does not entail long-term financial obligations.

According to Stiftung Warentest, residential real estate prices in Germany rose by an average of 2.5% in the first quarter of 2026 compared to the same period the previous year. At the same time, rent under new leases between early 2025 and early 2026 increased by approximately 3%.

When is it more advantageous to buy a home?

A mortgage in Germany can be a sensible solution for foreigners who plan to stay in the country for many years, have a stable income, and sufficient initial capital. This is especially true if the monthly costs of the loan and property maintenance are comparable to the rent for a similar home.

However, property owners are personally responsible for the costs of repairs, insurance, property tax, and maintenance. For apartments in multi-unit buildings, there is also a regular “Hausgeld” payment, which covers the upkeep of common areas, building management, and other expenses.

When is renting the better option?

Renting is worth considering for foreigners who haven’t yet decided on a city to live in, plan to change jobs, or don’t have sufficient savings.

It can also be more financially advantageous in cities where real estate purchase prices significantly exceed rental costs. Furthermore, a renter does not risk losing money due to a drop in the apartment’s market value or the need to sell it urgently.

For an objective comparison, you need to consider more than just the rent and the monthly mortgage payment. It is important to compare total costs over the same period, the remaining loan balance, potential changes in housing prices, and the income that savings invested instead of the down payment could generate.

The Stiftung Warentest Buy vs. Rent Calculator can help you perform this calculation for a specific situation. It allows you to compare several scenarios, taking into account trends in real estate prices, rental rates, and capital accumulation.

In our previous article, we discussed how to start a business in Germany: a detailed guide for foreigners.

What should you consider before buying a home in Germany?

Even a favorable interest rate doesn’t guarantee that buying real estate will be financially sound. Older homes may require costly repairs, while low-priced apartments can have significant maintenance costs. Therefore, before taking out a mortgage in Germany, it’s important to check the property’s condition, the relevant documents, and your future financial obligations.

You should pay particular attention to the following aspects:

- The home’s energy efficiency. Check the Energieausweis energy certificate, which contains information on energy consumption and heating specifications. Energy efficiency classes range from A+ to H. A home with a low rating may require modernization and incur significant heating costs.

- Technical condition of the property. Find out the age of the heating system and the condition of the roof, facade, electrical wiring, and windows. For older buildings, it is advisable to commission an independent technical inspection.

- Monthly Hausgeld fees. Apartment owners pay these fees to cover the maintenance of common areas, building management, and the creation of a repair reserve fund. The amount of the payment depends on the building’s characteristics and the homeowners’ association’s budget.

- Planned repairs. Before buying an apartment, check the minutes of the homeowners’ meetings (Eigentümerversammlung). They may contain decisions regarding roof replacement, facade repairs, or other costly work. If the accumulated reserve is insufficient, homeowners may be required to make additional contributions (Sonderumlage).

- Legal restrictions. Check the entries in the land registry (Grundbuch), third-party rights, encumbrances, and specific features of the land parcel. Properties on leased land (Erbbaurecht) require special attention.

- Mortgage agreement terms. Pay attention to the possibility of making additional loan payments (Sondertilgung), changing the repayment schedule, and potential costs in the event of early termination of the loan.

The seller is required to provide the prospective buyer with an energy performance certificate no later than the property inspection, if such a requirement applies to the property. This document helps assess the property’s energy efficiency, although it does not in itself guarantee the specific amount of future utility bills.

Apartment owners should also review the financial documents of the homeowners’ association. Meeting minutes may reveal issues with the building’s technical condition and planned repair work that will require additional funds.

Buying a home in another country is not only an investment but also a serious legal procedure. Mistakes in documents, unaccounted taxes or restrictions for foreigners can lead to financial losses. Consultation with a real estate lawyer from Visit World will help you to safely complete the transaction, check the seller and avoid hidden risks. Contact the experts to make your real estate purchase abroad as transparent and secure as possible.

We remind you! The Cypriot parliament is considering draft laws that could significantly change the conditions for buying real estate for citizens of countries outside the European Union. The initiatives include quantitative limits on properties, geographical bans and transparency requirements for transactions. Read more about the proposed restrictions, foreign purchases statistics and how to prepare for possible changes in the Cyprus real estate market.

Products from Visit World for a comfortable trip:

Travel guide for 200 countries;

Legal advice from a local specialist on visa and migration issues;

Travel insurance around the world (please select the country of interest and citizenship to receive services);

Medical insurance all over the world.

We monitor the accuracy and relevance of our information, so if you notice any errors or inconsistencies, please contact our hotline.