Eigenkapital
Equity / Down Payment. The cash you contribute to a property purchase. German banks expect residents to cover at least the purchase costs (8–12%) plus 10–20% of the price; non-residents typically need 40–50%.
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 never financed and always come from equity.
Non-resident buyers face the biggest equity hurdle (typically 50–60% max LTV, June 2026 market convention). German tax residents, including Blue Card holders, access 80–90%, sometimes more for strong profiles.
Frequently asked questions
How much equity do I need to buy property in Germany?
German residents are generally expected to cover the purchase costs of 8% to 12% plus 10% to 20% of the price. Non-residents typically need 40% to 50%, 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 under mid-2026 market convention, while German tax residents reach 80% to 90%.
Do purchase costs count toward my equity?
They consume it. Transfer tax, notary and agent fees are never financed and always 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.