How to buy a house in Germany

The property prices in Germany depends on the location of the property (for example living environment and view), the features of the land and of the building (for example the size, the number of rooms and the type of the house). About fifty percent of the people who rent an apartment want to buy a house, but the costs for a one or two-family house in Germany are on average two thousand five hundred to three thousand euros per square meter. Many people cannot afford that.

To get a mortgage in Germany they must be at least eighteen years old and have equity of at least twenty percent of the mortgage value. Many legal regulations concerning the purchase of a house can be found in the Civil Code.

People who want a mortgage must submit various documents to the bank to prove their creditworthiness. For example, the bank requires the last three salary statements, the last income tax assessment, current pension information and the proof of further loans.
Self-employed persons must provide additional evidence, for example an extract from the commercial register and a balance sheet and profit calculation.
Documents must also be submitted for the property, for example the purchase contract, the construction plan, various area calculations and an estimate of construction costs. In addition, a calculation of ancillary living costs, an extract from the construction load list and a copy of the building insurance can be requested.

After making arrangements with the bank about the mortgage, you must go to the notary. At the notary the change of ownership is sealed by the signing of the purchase contract. This means that the change of ownership then also has the legal validity. In addition, a notarization for the purchase contract and an entry in the land register is made at the notary.

For the purchase of a house you also have to calculate with many costs. First, the purchase price and all additional costs for a house must be paid. Additionally, there are the costs of the land transfer tax, which depending on the federal state, amount to approximately three to six percent of the purchase price. There will be expect costs for the notary of about two percent of the purchase price.

After payment of all costs, the purchase is considered completed and the change of ownership becomes valid.


My name is Xenia, I am from Germany and I am an intern at the Irish Mortgage Brokers.

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