Precautions for buying a home loan in Germany

Prices vary from city to city in Germany. Some local houses can go up to 70, 80 square meters and 200,000 euros.


The most important thing to buy a house in Munich is fast. After looking at a house, I have to find a bank loan within a few weeks. Therefore, the consideration of buying a house can also be said to be a loan consideration.




There is no limit to buying a house in Germany. The main limitation is the ability to repay your loan. Of course, rich people do not need loans. The bank assesses how much you can borrow based on your income. You can also show your domestic and international account deposits to the bank to prove your down payment ability. The lower the down payment, the lower the interest rate, but it doesn't cost too much. The 40% down payment can lower the interest rate under the same conditions. The interest rate for buying a home loan in Germany is low, between one and two. The specific interest varies from bank to bank.

The loan policies of various banks are also different. For example, do you have a long-term status or do you have a permanent work contract? I have filtered out about 99% of the banks without long-term status. Fortunately, I am a permanent work contract.




To develop a repayment plan, you can decide how much you want to repay each month, which directly affects your return within a few years. Germany's repayment period is generally set to be longer, and 20 or 30 years is common. You can choose a time rate that varies from 5 to 20 years. The longer the basic selection time, the higher the interest rate will be. For example, if you choose the interest rate unchanged within 5 years, the interest rate is 1.37%; if the interest rate remains unchanged within 10 years, the interest rate may become 1.71%. After this period, the remaining amount needs to be re-established based on the interest rate benchmark for that year.


The monthly repayment amount can be freely regulated by itself. It is usually recommended to pay 2% of the principal for one year, which can be as low as 1.5%. If there is no upper limit, there should be no upper limit. You can choose up to 10% special repayment each year, that is, if you are rich for a certain period of time, you can save more money, but this percentage is different from each bank. Usually 5%, I have seen a bank is 10%.




For the bank, 20% is enough for the bank. If you buy a house here, if you do not pass the intermediary, then there will be about 7 percent tax and handling fee for the house price. If you buy a house through an intermediary, it is about 10%. So 20% means that the bank hopes that you can pay the fees and taxes yourself and provide 10% of the price. But if you are assessed to have a strong ability to repay, you can also borrow in full.




Talking about loans with banks is a very energy-intensive task. Because the efficiency of banks here is relatively low, people's work attitude is relatively loose, and the housing market in Munich is in short supply. Therefore, it will take a long time to compare them everywhere. There is a kind of bank intermediary, he can compare the various programs for you. If you want to accept the bank commission, you will not affect the lender. However, the problem here is that the scheme provided by the bank intermediary may be different from the scheme directly provided by the bank, so it is still necessary to think more about it.