Real estate in Germany and the Netherlands

The amount of equity required to purchase an existing home depends on various factors, including the purchase price, financing terms, and the individual requirements of lenders. However, as a rule, equity of around 20% of the purchase price is recommended in order to obtain favorable financing.

The term of your home loan depends on various factors such as the amount of the monthly installment, the loan amount, and any special repayments. However, you can choose the term of the fixed interest rate yourself. In recent years, especially since the coronavirus pandemic, interest rates have risen steadily. We therefore recommend a shorter fixed interest rate term at this point in time.

The annuity should not exceed 35% of your net household income. This will give you enough leeway for other daily expenses and living costs.

The costs of financing a home are made up of various factors that you should take into account when planning your financing. These include:

• The purchase price of the property
• Incidental acquisition costs, such as real estate transfer tax, notary and land registry fees
• Financing costs, such as interest and fees for the loan
• Ancillary construction costs, such as building permits, setting up the construction site, and construction management
• Commitment interest incurred on undrawn loan amounts