Arenja & Raj FinanzThe process at a glance
- 1Work out what you can actually afford
- 2Get a financing confirmation
- 3Find the property
- 4Make an offer
- 5The bank's formal approval
- 6The notary appointment
- 7Payment and the land registry
- 8Handover and afterwards
Before you start: what needs to be in place
Three things decide whether a German bank will talk to you, and none of them is the property. The first is documented income: an employment contract, your last three payslips and usually your last tax assessment. The second is equity in cash — enough to pay the purchase costs, which no bank finances. The third is a clean SCHUFA record, which is Germany's credit file and takes time to build after you arrive.
Your residence status matters too, but less than people fear. Germany places no restriction on who may own property; the constraint is financing, and it is a bank-by-bank question rather than a legal one.
Work out what you can actually afford
German banks do not lend a multiple of your salary. They work backwards from what you can repay each month, then subtract the purchase costs you have to fund yourself. The guideline most advisers use is that the mortgage payment should not exceed roughly 40 % of net household income, with any existing loan payments deducted first.
Do this before you look at listings, not after. Nothing wastes more time than falling for a flat and discovering that the purchase costs alone were beyond your savings.
Get a financing confirmation
A Finanzierungsbestätigung is a letter from a bank or broker stating that a purchase up to a certain amount is realistic for you. It is not a binding loan offer, and it costs nothing.
In competitive markets, estate agents will not arrange a second viewing without one. Sellers use it to filter out browsers. Getting it early is the single cheapest way to be taken seriously.
Find the property
Listings live on ImmobilienScout24, Immowelt and Kleinanzeigen, plus agents' own sites. Two documents are worth requesting before you spend a Saturday on viewings: the Energieausweis, which tells you what the building costs to heat, and for an apartment the Teilungserklärung and the last three years of owners' meeting minutes, which tell you what the building is arguing about and what repairs are coming.
For apartments, ask for the Hausgeld statement. It splits into costs you can pass to a tenant and costs you cannot — and the second group is what quietly eats your return if you ever let the flat out.
Make an offer
Offers in Germany are informal until the notary. There is no exchange of contracts, no deposit held in escrow at this stage, and no legal commitment on either side. Prices are negotiable to very different degrees depending on the city and how long the listing has been up.
Once seller and buyer agree, the seller's or buyer's notary is instructed to prepare a draft contract. This is also the moment to finalise your financing, because the bank needs the draft to complete its own valuation.
The bank's formal approval
Now the lender values the property itself, not just you. Expect requests for the floor plans, the land registry extract, the energy certificate and photographs. Where the bank's valuation comes in below the agreed price, it lends against its own figure, and the difference has to come from your own funds.
This is where an independent broker earns their fee: conditions on the same case routinely differ by more than a full percentage point between lenders, and some banks are structurally friendlier to foreign applicants than others.
The notary appointment
In Germany a property sale is only valid if a notary reads the contract aloud and both parties sign in front of them. The notary is neutral — they act for the transaction, not for either side — and their fee is part of your purchase costs.
You receive the draft contract at least 14 days before the appointment, a statutory cooling-off period intended to give you time to read it. Use it. If your German is not strong, bring an interpreter; the notary can also read the contract in English in some offices, but this must be arranged in advance.
Payment and the land registry
After signing, the notary arranges a priority notice (Auflassungsvormerkung) in the land register, which reserves the property for you. Only once that is entered and the seller's existing mortgages are cleared does the notary send you the payment instruction.
Your bank then pays out. Transfer tax is assessed shortly afterwards, and the tax office issues a clearance certificate (Unbedenklichkeitsbescheinigung) — without it, ownership cannot be registered. Final registration in the land register can take weeks to several months depending on the district.
Handover and afterwards
Keys change hands once payment has arrived, usually with a written handover protocol recording meter readings and the condition of the property.
Then the recurring items begin: property tax, building insurance, and for an apartment the monthly Hausgeld. Set a reminder for the end of your fixed interest period too — the best conditions for a follow-on loan are usually available well before the old one expires.
How long does it all take?
From accepted offer to notary appointment is typically four to eight weeks, most of it waiting on the bank and the notary's drafting. From the notary appointment to payment is another four to eight weeks. Realistically, budget three to four months from offer to keys, and longer if the property has an existing mortgage that needs clearing or the seller is an estate.
What the whole thing costs, in one place
People budget for the price and the deposit, then get surprised twice: once by the purchase costs, and again by the running costs that start the month you move in.
| Item | Typical amount on a €400,000 flat |
|---|---|
| Property transfer tax | €14,000 – €26,000 depending on the state |
| Notary and land registry | about €8,000 |
| Estate agent, if involved | about €14,300 |
| Total purchase costs | €22,000 – €48,000 |
| Ongoing: property tax, insurance, Hausgeld | monthly, varies by building |
None of the first three is financeable in the ordinary case. They are the reason a household with €30,000 saved and a €400,000 target sometimes has to look at €330,000 instead.
Five things that go wrong, and when
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Book a free callPick a time that suits youCommon questions
Can I buy property in Germany without a permanent residence permit?
Yes. Ownership is not tied to residence status or citizenship. The question is financing: banks assess how long your permit runs, how secure your employment is and what your payment history in Germany looks like. Some decline where the permit expires inside the fixed-rate period, others do not — which is why comparing across many lenders matters more for foreign applicants than for German ones.
Do I need a lawyer as well as a notary?
Usually not. The notary is legally neutral and responsible for making sure the contract is correct and both sides understand it. A lawyer becomes worthwhile where the situation is unusual: a divided property, an inheritance sale, unclear easements in the land register, or a new-build contract with a developer.
How much are the purchase costs?
Between roughly 7.5 % and 15 % of the price, depending on your federal state and whether an estate agent is involved. Transfer tax alone ranges from 3.5 % in Bavaria to 6.5 % in several states. Notary and land registry add about 2 %, and a buyer's share of agent commission is commonly 3.57 %.
Can I negotiate the price in Germany?
It depends heavily on the market. In sought-after parts of Hamburg, Munich or Berlin, popular flats sell close to asking. Elsewhere, and for properties that have been listed for months or need work, discounts of five to ten percent are common. Your negotiating position is far stronger with a financing confirmation in hand.
What happens if my financing falls through after the notary appointment?
The contract is binding from the moment it is signed. Withdrawing means paying the notary's fees and potentially damages to the seller. This is precisely why the financing should be settled — not merely discussed — before the appointment is booked.