Buyers are rarely able to fully afford buying a property out of their own pockets. Therefore, most people in Germany decide to take on a loan. The conditions of the loan you can get vary based on different factors. For example, the more equity capital you own, the lower the interest you have to pay on the loan will be. However, interest also varies based on the loans duration, value of the property and repayment instalment.

To be able to find out how long it will take to pay back the requested amount of money, it is advisable to set up a financing plan. That way you can also estimate how realistic the loan amount is. Remember to also take into account the additional expenses involved when loaning money. It may be worth getting offers from different providers to compare costs and conditions. Most banks offer extensive consultation on this subject, also with regards to the different kinds of loans you can get and which ones fit your needs best.

Next to banks, insurance companies and building societies also offer loans for buying a new home. Additionally, there are funding opportunities for real estate buyers in place that should be considered as a possible supplement to a loan. The “Kreditanstalt für Wiederaufbau” (KfW), for example, offers low-interest loans.