How much mortgage can I afford in Germany as an expat?

Short answer: How much mortgage you can afford in Germany depends on your net income, household expenses, existing liabilities, equity and financing terms. For expats, residency status, employment history and SCHUFA can also influence the final amount a bank is willing to lend.

How German banks calculate mortgage affordability: Banks prepare a household budget calculation (Haushaltsrechnung) comparing your reliable monthly income with living costs, existing loan payments and other regular expenses. The amount remaining helps determine which monthly mortgage payment and loan amount are realistic.

Income and expenses: A stable net income supports your borrowing capacity, but salary alone is not enough. Lenders also consider household size, employment type, recurring expenses, current debts and whether income comes from bonuses, self-employment or another country.

Equity and deposit: More equity (Eigenkapital) can increase your realistic purchase budget and improve financing conditions. It reduces the loan-to-value ratio (Beleihungsauslauf) and therefore the lender's risk. You should also keep enough cash available for additional purchase costs rather than using all your savings as the deposit.

Interest rate and repayment: Higher mortgage rates increase the monthly payment and normally reduce how much you can borrow. The initial repayment rate, fixed-interest period and loan term also affect affordability and the remaining debt.

Expat-specific factors: Banks may also review your residence permit, length of employment in Germany, SCHUFA profile and the currency of any foreign income. Because lenders assess these factors differently, two banks may offer very different maximum mortgage amounts for the same applicant.

Use our Affordability Calculator to estimate an indicative maximum loan from your preferred monthly payment. The result is a planning figure, not a binding mortgage approval.

Key takeaways:

• Banks assess net income, household expenses, liabilities and monthly payment capacity.
• More equity can increase your property budget and improve financing conditions.
• Interest rates, repayment, SCHUFA and residency status affect borrowing capacity.
• A mortgage calculator provides orientation, while the lender makes the final decision.

For guidance on affordability, documents and lender requirements, explore our Financing and Loans hub for expats.