The short answer: a mortgage in Germany as an expat
The short answer
Default pick: a 10-year fixed annuity loan from a direct bank or broker. The Deutsche Bundesbank’s average effective rate for new housing loans with a 5–10 year fix was 3.81% in August 2026, and broker rates for a 10-year fix were about 4.1%–4.5% in October 2026 (Deutsche Bank 4.14%, Commerzbank 4.22%, ING 4.30%). Fallback: a mortgage broker (Dr. Klein, Interhyp) who compares 400+ lenders and finds the bank that accepts your profile. The numbers that matter: banks lend up to 80–85% of the price, so plan on 15–20% deposit plus about 10–15% purchase costs — and after ten years you can leave any fixed-rate loan without a penalty, whatever the contract says.
A German mortgage is not built like the loans many expats know from home. The monthly payment is set by two rates, not by the length of the loan; the interest rate is usually fixed for a period, not for the whole term; and after ten years the borrower may leave without a penalty. This guide covers what a Baufinanzierung costs in November 2026, how much deposit you need, and what banks check before they lend to an international buyer.
Every figure below is an illustrative figure or a published rate checked on 7 November 2026 — your own rate depends on your SCHUFA score, income, deposit and the property. Always verify the live offer with the lender before applying.
→ Best bank accounts in Germany — November 2026 Guide
Cost comparison: German mortgage rates in November 2026
| Fixed-rate period | Bundesbank avg (Aug 2026) | Broker 10-year range (Oct 2026) | Notes |
|---|---|---|---|
| Variable / up to 1 year | 4.40% | — | Most expensive right now |
| Over 1 to 5 years | 4.03% | More than 10 years at Dr. Klein | Short fix, repricing risk |
| Over 5 to 10 years | 3.81% | 4.1%–4.5% | The German standard |
| Over 10 years | 4.04% | FMH average 4.48% (20 Oct) | Long certainty, higher rate |
| All new housing loans | 4.01% | vs 3.71% a year earlier | Market average |
Deutsche Bundesbank MFI interest rate statistics, provisional figures for August 2026, published 1 October 2026. Broker figures: Dr. Klein and Interhyp (October 2026), FMH average for ten years 4.48% on 20 October 2026. Lender headline rates: Deutsche Bank 4.14%, Commerzbank 4.22%, ING Germany 4.30% for a 10-year fix (checked 6 November 2026).
The pattern surprises newcomers: a short fixed-rate period is not cheaper right now — at Dr. Klein, five years costs more than ten. The 10-year fix is the sweet spot, and the 10-year exit right makes it flexible too. Rates rose in 2026: after eight cuts in a row, the ECB raised its deposit rate twice, to 2.25% on 17 June and to 2.50% on 16 September, and the ten-year German government bond yield reached 3.69% on 28 September — the highest since 2011.
→ Free mortgage affordability calculator — how much can you borrow?
1. How the payment works — interest + repayment
The annuity loan (Annuitätendarlehen)
The standard German mortgage is an annuity loan: you pay the same amount every month, made up of interest and repayment, and the interest rate is fixed for an agreed period. The monthly payment does not change for as long as the rate is fixed. It is set by two rates: the interest rate (Sollzins) and the initial repayment rate (anfängliche Tilgung), the share of the debt repaid in the first year. A €400,000 loan at 4.3% with a 2% initial repayment rate costs €2,100 a month — in the first month about €1,430 of that goes on interest and only about €670 repays the loan. A typical loan repays only a quarter of the debt in ten years, which is why the repayment rate matters as much as the interest rate: at last year’s 3.4%, the same loan would have cost €1,800 a month instead of €2,100.
→ Free Netherlands Mortgage for Expats — November 2026 Guide
2. The 10-year exit right — your flexibility
Sonderkündigungsrecht after 10 years
German law gives every borrower a special termination right after ten years: you may leave a fixed-rate mortgage without a penalty, whatever the contract says. That makes the 10-year fix far more flexible than it looks — you get a decade of payment certainty and a free exit at the end of it. Before ten years, leaving early triggers a prepayment penalty (Vorfälligkeitsentschädigung) that can be large, so the fix period you choose should match how long you expect to stay.
→ Free France PTZ Zero-Interest Loan — November 2026 Guide
3. What banks check for expats
Expat checks
Banks lend up to 80–85% of the price — Deutsche Bank up to 80%, ING up to 85% — so plan on a 15–20% deposit plus the purchase costs: transfer tax (Grunderwerbsteuer, 3.5%–6.5% depending on the state), notary and land registry at about 2%, and a broker fee of up to 3.57% if you use one. On a €400,000 home, the cash needed is roughly €100,000–€140,000. Banks check your SCHUFA file, your employment contract (permanent beats fixed-term), and your income — EUR income is preferred, and foreign income or income in another currency is harder to get counted. A mortgage broker such as Dr. Klein or Interhyp compares 400+ lenders and finds the bank whose criteria fit your profile.
→ Best bank accounts in Germany — November 2026 Guide
How to apply: five steps
- Check your SCHUFA file. Since 17 March 2026 SCHUFA shows a score on a 100 to 999 point scale — get yours before any bank sees it, and fix errors first.
- Save the deposit and costs. Roughly 25–35% of the price in cash: 15–20% deposit plus 10–15% purchase costs.
- Get a broker comparison. Dr. Klein or Interhyp compare 400+ lenders; the broker’s 10-year rate was 4.1–4.5% in October 2026.
- Fix the period and the repayment rate. Ten years fixed is the standard; set the initial repayment at 2% minimum, higher if you can afford it.
- Sign with the notary. The purchase is only binding once the notary contract is signed — the bank’s offer comes first, the notary second.
→ Free mortgage affordability calculator — how much can you borrow?
Scenario framework: which route fits you?
- Settled expat, good SCHUFA, 20% deposit. 10-year fixed annuity loan — about 4.1–4.5% in October 2026, €2,100 a month on €400,000 at 4.3% with 2% repayment, free exit after ten years.
- First-time buyer, thin file. Mortgage broker — Dr. Klein or Interhyp find the lender whose criteria fit your profile instead of the one with the lowest headline rate.
- Short stay (under 5 years). Rent, or a 5-year fix — the purchase costs of 10–15% take years to earn back, and an early exit triggers a penalty.
- High earner, large deposit. 15-year fix — lock the rate longer while rates are high, with the 10-year exit right as your safety valve.
→ Free Netherlands Mortgage for Expats — November 2026 Guide
How we compared: the methodology
How we compared
Rates checked: Deutsche Bundesbank MFI interest rate statistics for August 2026 (5–10 year fix 3.81%, over 10 years 4.04%, all new loans 4.01%), Dr. Klein and Interhyp broker rates for October 2026, and lender headline rates for Deutsche Bank, Commerzbank and ING (6 November 2026). Criteria and weights: effective rate (40%), deposit and cost requirements (25%), expat acceptance (20%), flexibility and the 10-year exit (15%). Scores are the editorial judgment of the ExpatMoneyEU Research Team — not financial advice. All rate figures are illustrative figures; verify the live offer with the lender before applying.
For expats, the deposit requirement weighs almost as heavily as the rate: the cheapest mortgage in Germany is worthless without roughly a quarter of the price in cash. That is why the guide leads with the cash requirement, not the rate table.
→ Best bank accounts in Germany — November 2026 Guide
What to watch in 2027
Dr. Klein expects the ten-year rate to stay between 4% and 4.5% until the end of the year, and the ECB decides on rates again on 29 October — the deposit rate is already at 2.50% after two rises in 2026. Fixed mortgage rates follow the ten-year German government bond yield even more closely than the ECB rate, and that yield reached 3.69% on 28 September, the highest since 2011. If you are buying in 2027, the rate will matter less than the deposit: save the cash, build the SCHUFA file, and let the broker find the lender.
→ Best bank accounts in Germany — November 2026 Guide
Sources
- Deutsche Bundesbank — MFI interest rate statistics, August 2026 (5–10 year fix 3.81%, over 10 years 4.04%, variable/up to 1 year 4.40%, all new housing loans 4.01%).
- Dr. Klein / Interhyp — broker 10-year fixed rates 4.1–4.5%, October 2026; FMH average 4.48% on 20 October 2026.
- Deutsche Bank 4.14%, Commerzbank 4.22%, ING Germany 4.30% — 10-year fixed headline rates, checked 6 November 2026.
- European Central Bank — deposit rate raised to 2.25% on 17 June 2026 and 2.50% on 16 September 2026.
- German Civil Code (BGB § 489) — special termination right after 10 years without penalty.
Your next step
Compare the live offer, check your eligibility, then apply — the best rate is the one you check today:
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