Comparing mortgage offers in Germany: the terms that decide the cost

The rate gets the attention. The terms around it decide what the loan costs you over the years.

What to know

1. See where rates are

   Home loans fixed for over 5 and up to 10 years, the usual 10-year loan among them, averaged 3.91 % in September 2026 (provisional).

   Fixed for	Sep 2026	A year before
   Variable, or up to 1 year	4.51 %	4.16 % (+0.35)
   Over 1, up to 5 years	4.03 %	3.58 % (+0.45)
   Over 5, up to 10 years	3.91 %	3.60 % (+0.31)
   Over 10 years	4.13 %	3.79 % (+0.34)

   Since then, the yield on mortgage Pfandbriefe, which leads these averages, has fallen by 0.17 points (to 3.77 % on 2 November), so offers today may sit a little below it.

   Averages of the new home loans actually signed in Germany, weighted by size and without fees, so advertised offers usually sit a little above them. Your own rate turns on your figures, such as how much you borrow against the value. Source: Deutsche Bundesbank.

   Our rates tracker, month by month →

2. Know the terms that set the cost

   Fixed-rate period (Zinsbindung). Commonly 10 or 15 years.

   How long the rate is fixed; 5 to 20 or more are available. Longer means more certainty, usually at a slightly higher rate. If the rate is fixed for longer than ten years, you can still end the loan ten years after it's fully paid out, with six months' notice and no early repayment charge (§ 489 BGB).

   Initial repayment (Tilgung). The more you repay, the less is left when the rate ends.

   And the less a higher rate then costs you. Lenders like a loan paid off by retirement: the mortgage calculator shows the age it's paid off at, if you give the older buyer's age.

   Special repayments (Sondertilgung). Paying off extra without a charge, often up to 5 % a year.

   Worth asking for even if you don't plan to use it.

   Changing the repayment (Tilgungssatzwechsel). Raising or lowering it during the fixed period.

   An option some lenders give, for when life changes.

   Commitment fees (Bereitstellungszinsen). Interest on money not yet paid out.

   They start after a free period, and matter most for new builds paid in stages.

   The effective rate (Effektivzins). The one to compare between lenders.

   It includes costs the nominal rate leaves out.

   How much you borrow against the value. The closer to it, the higher the rate.

   The value here is the lender's own, cautious one (Beleihungswert), often below the price: checking the price.

   Selling early (Vorfälligkeitsentschädigung). The lender can charge for the interest it loses.

   If you sell during the fixed-rate period, you can end the loan early, but the lender can charge a fee for it (§ 490(2) BGB).

3. Check for KfW funding

   The state development bank lends for some purchases, for example energy-efficient homes, and a financing expert can combine it with a bank loan. Apply through your bank before you sign at the notary: KfW doesn't fund a project that has already started, and signing counts as starting it. Here are the KfW loans buyers can use.

4. Compare your offers

   Copy the terms from up to three offers and see the monthly payment, what's still owed when the rate ends, and the interest and fees side by side.

   Compare your offers ↑

5. Hold a binding offer before the notary

   Sign the loan and the purchase close together, with the loan offer binding before the appointment: why the order matters.

What lenders check if you're not German: getting a mortgage in Germany as a foreigner.

Primary sources checked on 26 October 2026: the statutes and official pages linked above.