Do you dream of owning your own home, but the financing seems complex? Solid planning and knowledge of current conditions are crucial for a successful house purchase. This article shows you how to optimise your financing and avoid pitfalls.
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The topic briefly and concisely
A solid equity base of at least 20-30% of the purchase price, including additional costs, is crucial for favorable financing conditions.
Compare interest rates and terms from over 400 banks, as even small differences can mean savings of several thousand euros.
Take advantage of government subsidies like KfW programmes (e.g., up to 100,000 euros through the home ownership programme) to reduce the financial burden.
Purchasing a property is one of the most significant financial decisions in life. Given fluctuating interest rates and various financing options, many wonder: How can I best manage the financing for my house purchase? A thorough household budget, sufficient equity, and comparing loan conditions are essential. Government subsidies can further ease the financial burden. With the right strategy and informed knowledge, you can turn your dream of owning a home into reality. Find out here what you need to pay attention to.
Laying the Foundation: Equity and Budget Planning
Before taking concrete steps toward financing your home purchase, an honest assessment of your financial situation is essential. How much capital can you contribute? Experts recommend covering at least the incidental purchase costs, which can amount to up to 15% of the purchase price, from your own funds. A solid equity ratio of 20% to 30% of the total purchase price not only improves your negotiating position with banks but also reduces the financing risk and often the interest rate.
Create a detailed household budget to determine your disposable monthly budget for the loan payment. Banks often set a maximum of 35% of household net income for the monthly payment. Also include a buffer for unforeseen expenses or future life changes. A financing calculator can help you get an initial estimate of your options. This solid foundation is crucial for finding the right loan amount and installment size for your needs.
Understand and compare credit terms
The cost of home financing is primarily determined by the nominal interest rate. Currently, the top interest rates for home financing are between 3.09% and 3.93% (as of 04.06.2025). Even small differences in interest rates can save you several thousand euros over the term. Therefore, comparing offers from over 400 banks and lenders can be worthwhile.
Pay attention not only to the nominal interest rate but also to the effective interest rate, which already includes most of the additional loan costs. Other important conditions are the duration of the nominal interest rate fixation, the possibilities for special repayments, and changing the repayment rate. In times of generally stable or slightly decreasing interest rates, a shorter interest rate fixation of, for example, 10 to 12 years can be sensible, allowing you to react more flexibly to market developments after it expires. Professional financing advice can help you find the optimal offer for you.
Don't underestimate additional costs when buying a house
In addition to the purchase price, buying real estate involves various additional costs, which can often amount to 10% to 15% of the purchase price. Ideally, these should be covered by equity. The main additional costs include:
Property transfer tax: Depending on the federal state, this is between 3.5% and 6.5% of the purchase price. For example, in Bavaria and Saxony, it is 3.5%, while in North Rhine-Westphalia it is 6.5%.
Notary and land registry fees: Approximately 1.5% to 2% of the purchase price is incurred for notarising the purchase contract and the land registry entry.
Brokerage fees: If an estate agent is involved, their commission for the buyer can be up to 3.57% (incl. VAT) of the purchase price, depending on regional practices and agreements. Since 2020, the brokerage costs are often shared equally between the buyer and seller.
Additionally, costs for appraisers (approx. 500 to 1,500 euros), financing fees, as well as moving and renovation costs may arise. A precise listing and calculation of these items is essential for realistic financial planning. Knowing the required documents in detail can accelerate the process.
Utilise government subsidies as financial relief
The government supports the acquisition of home ownership through various support programmes that can make financing a house purchase easier. The Kreditanstalt für Wiederaufbau (KfW) is a key point of contact here. It provides low-interest loans and sometimes repayment grants for various projects. These include, for example:
KfW Home Ownership Programme (124): Up to 100,000 euros loan for the purchase or construction of owner-occupied residential property.
Climate-Friendly New Build (297, 298, 300): Subsidised loans for the construction or first acquisition of energy-efficient new builds, often focusing on families. The income thresholds for families were raised in 2024 for the "Home Ownership for Families" programme (300) to 90,000 euros gross annual income for a family with one child.
Senior-Friendly Renovations (159): Loans up to 50,000 euros for measures to reduce barriers.
Energy-Efficient Refurbishment (e.g. KfW 261): Loans and repayment grants for renovation measures leading to an efficiency house standard (up to 150,000 euros loan per residential unit).
Federal states and municipalities also offer their own support programmes. In addition, there is assistance for saving capital, such as the housing bonus or employee savings allowance. Early information about suitable funding sources and support options, for example via the ImmoGPT chat from Auctoa, can significantly reduce your financial burden.
Choose the right type of loan
For the financing of your house purchase, various loan models are available. The most common form is the annuity loan. Here, you pay consistent monthly instalments over an agreed fixed interest period (often 10-15 years), which consist of an interest and a repayment portion. With each instalment, the remaining debt decreases, causing the interest portion to decrease and the repayment portion to increase.
Another option is the full repayment loan, where the entire loan amount is completely repaid within the agreed term, so there is no need for subsequent financing. For security-oriented buyers, a savings-backed financing might also be attractive: you combine an advance loan with a savings contract, which later serves to repay the loan and often offers favourable interest rates for the remaining debt. The choice of the right type of loan depends heavily on your individual financial situation and risk tolerance. Advice from experts like Auctoa can help you find the optimal structure for your property financing.
Long-term Planning: Strategically determine fixed interest rate and repayment
The duration of the fixed interest rate period is an important decision when financing your house purchase. In times of low interest rates, a long fixed interest rate period of 15, 20, or more years can be sensible to secure favourable conditions in the long term. Currently, with moderate interest rates of around 3-4%, many borrowers choose a fixed interest rate period of between 10 and 12 years. This offers a compromise between planning security and flexibility for a potential follow-up financing under potentially changed market conditions.
The initial repayment rate significantly influences the total term of your loan. A higher repayment rate (e.g., 2-3% p.a. or more) leads to faster debt freedom and lower total interest costs. A lower initial repayment rate of, for example, 1% does reduce the monthly burden, but it extends the term and increases interest costs. Weigh your monthly financial capacity against the desire for faster debt relief. The option of free special repayments, often 5% of the loan amount per year, offers additional flexibility. Consider also using equity in the land purchase to reduce the loan amount right from the start.
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A solid financing plan when buying a house also takes unforeseen events into account. What happens if your income decreases due to unemployment, illness, or an accident? A term life insurance policy can ensure that your dependents can continue to pay the instalments or pay off the loan in the event of death. The insurance sum should cover at least the amount of the remaining debt.
A disability insurance is also an important component to be able to pay the monthly instalments even in the event of a prolonged loss of earnings. Additionally, check if your mortgage includes options like the ability to change the repayment rate to temporarily reduce the instalment during financial difficulties. A reserve of 3-6 months' salary in a savings account for unforeseen repairs or house expenses is also recommended. An accurate property financing plan and awareness of potential risks in property loans are also part of comprehensive planning.
Conclusion: With foresight and expertise to successful home financing
Was ist wichtiger: niedriger Zinssatz oder hohe Tilgung?
Beides ist wichtig. Ein niedriger Zinssatz reduziert die Gesamtkosten. Eine höhere Tilgung verkürzt die Laufzeit und senkt ebenfalls die Zinskosten. Die optimale Balance hängt von Ihrer finanziellen Situation und Risikobereitschaft ab. Eine Rate sollte 35% des Nettoeinkommens nicht übersteigen.
Wie lange sollte die Zinsbindung sein?
In Niedrigzinsphasen sind lange Zinsbindungen (15+ Jahre) attraktiv. Bei moderaten Zinsen (aktuell ca. 3-4%) wählen viele 10-12 Jahre für einen Kompromiss aus Sicherheit und Flexibilität.
Kann ich ohne Eigenkapital ein Haus finanzieren?
Eine Finanzierung ohne Eigenkapital (Vollfinanzierung) ist theoretisch möglich, aber risikoreicher und führt zu deutlich höheren Zinsen und Raten. Die meisten Banken fordern Eigenkapital zumindest für die Nebenkosten.
Welche Rolle spielt die SCHUFA bei der Hausfinanzierung?
Die SCHUFA-Auskunft ist ein wichtiger Faktor für die Bank zur Einschätzung Ihrer Kreditwürdigkeit (Bonität). Ein guter SCHUFA-Score kann zu besseren Zinskonditionen führen.
Was passiert, wenn ich die Raten nicht mehr zahlen kann?
Sprechen Sie sofort mit Ihrer Bank, um Lösungen wie eine Stundung oder Anpassung der Raten zu finden. Versicherungen wie eine Risikolebens- oder Berufsunfähigkeitsversicherung können hier präventiv helfen.
Wie kann Auctoa mir bei der Hausfinanzierung helfen?
Auctoa bietet KI-gestützte Immobilienbewertungen, die Ihnen eine realistische Einschätzung des Objektwerts liefern. Dies ist eine wichtige Grundlage für Ihre Finanzierungsgespräche. Unser ImmoGPT-Chat kann zudem erste Fragen zur Finanzierung beantworten.
Additional useful links
The Federal Statistical Office offers comprehensive data on construction prices and the property price index in Germany.
The Bundesbank provides statistics on interest rates for housing loans to private households.
The KfW provides information about support programmes for the construction of owner-occupied housing for private individuals.
The Consumer Centre offers expert knowledge and practical tips on construction and property financing.
In the Residential Property Market Indicator System of the Bundesbank, you will find detailed interest rates for housing loans in Germany.
The Federal Ministry of Justice provides information on online access to land register information.
The Bundesbank analyses the price development of residential properties and the rental market.
FAQ
What is more important: a low interest rate or high repayment?
Both are important. A low interest rate reduces the overall costs. A higher repayment shortens the term and also reduces interest costs. The optimal balance depends on your financial situation and risk tolerance. A rate should not exceed 35% of your net income.
How long should the fixed interest rate period be?
During periods of low interest rates, long-term rate locks (15+ years) are attractive. With moderate interest rates (currently around 3-4%), many choose 10-12 years for a compromise between security and flexibility.
Can I finance a house without equity?
Financing without equity (full financing) is theoretically possible, but riskier and results in significantly higher interest rates and repayments. Most banks require equity at least for the ancillary costs.
What role does SCHUFA play in home financing?
The SCHUFA report is an important factor for the bank in assessing your creditworthiness. A good SCHUFA score can lead to better interest rate conditions.
What happens if I can no longer pay the instalments?
Speak to your bank immediately to find solutions like deferral or adjustment of instalments. Insurances such as term life insurance or disability insurance can help preventively here.
How can Auctoa help me with home financing?
Auctoa offers AI-powered real estate assessments that provide you with a realistic estimation of the property's value. This serves as a crucial foundation for your financing discussions. Our ImmoGPT chat can also answer initial questions about financing.
