Eigenkapital
Equity / Down Payment. The cash you contribute to a property purchase. German tax residents usually bring the purchase costs plus 10–20% of the price (80–90% loan-to-value); with a strong income profile banks finance up to the full price, and LDP's own client cases include 100% and 105.5% financing. Non-residents typically need 40–50% plus purchase costs.
Equity drives your interest rate: banks price loans in LTV bands, with visible discounts at 80%, 70% and 60% loan-to-value. Purchase costs (transfer tax, notary, agent) are normally not financed and come from equity.
Non-resident buyers face the biggest equity hurdle (typically 50–60% max LTV in LDP's own client cases). German tax residents, including Blue Card holders, access 80–90% as standard and up to 100% with a strong income profile.
Frequently asked questions
How much equity do I need to buy property in Germany?
German tax residents usually bring the purchase costs plus 10% to 20% of the price; with a strong income profile banks finance up to the full price, and LDP's own client cases include 100% and 105.5% financing. Non-residents typically need 40% to 50% plus the purchase costs, because their maximum loan-to-value is lower.
Why do non-residents need more equity than residents?
Banks price the risk of income and enforcement outside Germany. Non-resident buyers are typically capped at 50% to 60% loan-to-value in LDP's own client cases, while German tax residents reach 80% to 90% as standard and up to 100% with a strong income profile.
Do purchase costs count toward my equity?
They consume it. Transfer tax, notary and agent fees are normally not financed and come out of equity, so they must be added on top of the down payment when planning cash.
Does more equity get me a better interest rate?
Yes. Banks price in loan-to-value bands, with visible steps at 80%, 70% and 60%. Crossing one of those thresholds can matter more to the rate than shopping between lenders.