Glossary
Eigenkapital
Equity / Down Payment. The cash you contribute to a property purchase. German banks expect residents to cover at least the purchase costs (8–12%) plus 10–20% of the price; non-residents typically need 40–50%.
Equity drives your interest rate: banks price loans in LTV bands, with visible discounts at 80%, 70% and 60% loan-to-value. Purchase costs (transfer tax, notary, agent) are never financed and always come from equity.
Non-resident buyers face the biggest equity hurdle (typically 50–60% max LTV, June 2026 market convention). German tax residents — including Blue Card holders — access 80–90%, sometimes more for strong profiles.