BecomeHHGermany is Europe's stability play: strong tenant demand, conservative lending and meticulous title records (the Grundbuch). Berlin, Munich and Hamburg lead prices; yields are modest (~3.8%) but dependable.
Foreigners buy without restriction. The notar-led process is rigorous — nothing is binding until the notarised contract is signed, after which the transfer tax (Grunderwerbsteuer, 3.5–6.5% by state) and fees apply.
Market overview
German mortgages favour long fixed periods (10+ years) with rates near 4.15–4.50% in late 2026; note that early repayment during a fixed period triggers a bank-calculated Vorfälligkeitsentschädigung. Agent commission (~3.5%) is normally split buyer/seller since the 2020 reform. Budget total buying costs around 8–12%.
Popular locations:
Mortgage rates in Germany (October 2026)
| Bank | Rate | Max LTV | Website |
|---|---|---|---|
| 🏆 Deutsche Bank | 4.14% | 80% | www.deutsche-bank.de/pk.html |
| Commerzbank | 4.22% | 80% | www.commerzbank.de/privatkunden/immobilienkredite/baufinanzierung/ |
| ING Germany | 4.30% | 85% | www.ing.de/baufinanzierung/ |
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True cost of buying & owning
If you rent it out: Progressive 14–45% (+ solidarity surcharge) on net rent. Non-residents get no tax-free allowance, so tax starts from the first euro of profit. Compare all countries →
Get your exact numbers with the Hidden Buying Costs and Annual Ownership Costs calculators.
Step-by-step buying process
- 1Arrange financing (Finanzierungszusage)
- 2Find property (ImmoScout24)
- 3Notary drafts purchase contract
- 4Sign contract at notary (Notartermin)
- 5Pay Grunderwerbsteuer (transfer tax)
- 6Entry in Grundbuch (land register)
- 7Pay purchase price
- 8Receive keys (Übergabe)