How Much House Can You Afford in Germany?
Enter your net household income and available equity to get a realistic property budget: including the residency-status financing limits that most calculators ignore.
Book a free screening callUses the German banking rule of thumb that housing costs should stay within ~40% of net income, a 4.3% rate (10y fixed, taken from our rate table, refreshed every two weeks), 2% Tilgung and ~10% purchase costs paid from equity. LTV bands by residency reflect market convention, confirmed August 2026; the 85% Blue Card setting is a cautious value inside the resident band of 80 to 90%. Non-resident means living outside Germany; buyers living outside the EU: the banks our broker partner FM Zinswerk works with do not finance this group, and LDP does not take on these purchases. Illustrative estimate: actual terms depend on the property, your profile and the lender. Not financial or tax advice.
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How this calculator works
German banks apply two independent limits, and your budget is the lower of them. The income limit: your total housing payment should stay within roughly 40% of net household income (after existing loan obligations). The equity limit: purchase costs of ~10% are normally not financed, and banks cap the loan at a maximum loan-to-value that depends on your residency status.
Residency drives LTV in practice (market convention, confirmed August 2026): German tax residents, including EU Blue Card holders with German employment, get 80–90% as standard and up to 100% with a strong income profile (this calculator uses 90% for residents and a more cautious 85% for the Blue Card setting), while non-residents buying from abroad are typically capped at 50–60%: meaning roughly half the purchase price in cash.
This is a screening estimate. Banks also weigh employment history, sector, probation periods, self-employment and existing property. A pre-approval (Finanzierungsbestätigung) is the reliable way to fix your budget before viewing properties.
Frequently asked questions
How much income do I need to buy a €400,000 apartment?
At today's rate on this page (4.3% + 2% Tilgung) a €320,000 loan (80% LTV) costs about €1,680/month. Under the 40% rule you'd want roughly €4,200+ net household income, plus ~€120,000 equity for the down payment and purchase costs.
Do EU Blue Card holders get the same mortgages as Germans?
Nearly. With German employment and residence, most banks treat Blue Card holders like residents: 80–90% LTV and standard rates. The gap only opens for non-resident applications from abroad.
Why does the calculator subtract 10% for purchase costs?
Transfer tax (3.5–6.5% by Bundesland), notary and land registry (~2%) and agent commission (typically ~3.57% buyer's share) total 8–12% (5.5–8.5% without an agent, as on an LDP purchase). For a standard profile German banks do not finance these, so they reduce the equity available for your down payment.
Is the 40% rule a legal limit?
No: it's the market's affordability convention. Banks stress-test your household budget line by line; high incomes can stretch slightly above 40%, low incomes should stay below.