How much equity do I need to buy property in Germany?

A common rule of thumb in Germany is that you should be able to cover all of your closing costs (Kaufnebenkosten) plus at least 20% of the property price out of your own pocket. Closing costs include property transfer tax, notary, land registry, and the broker fee if there is one — together usually around 10% to 15% of the price, depending on the federal state. So in practice, most banks expect you to bring close to 30% of the total project cost in cash before they will finance the rest.

Some banks will lend more if your situation is strong: stable German income, a clean SCHUFA, a permanent employment contract, and ideally a long residence horizon. But the higher your share of equity, the better the interest rate — and the more comfortable the monthly payment.

A few practical points for expats: equity does not have to sit on a German account, but the source of foreign funds needs to be properly documented (account statements, contracts, gift letters). Investments, mature savings plans and family gifts can all count, as long as the paper trail is clean. Pulling that documentation together usually takes around six months — longer if your equity is spread across several countries.