{"id":6304,"date":"2025-02-11T11:52:11","date_gmt":"2025-02-11T10:52:11","guid":{"rendered":"http:\/\/localhost:8888\/latour-finance\/?p=6304"},"modified":"2025-05-07T00:05:06","modified_gmt":"2025-05-06T22:05:06","slug":"mortgages-in-germany-5-differences-from-france","status":"publish","type":"post","link":"https:\/\/latour-finances.de\/en\/2025\/02\/mortgages-in-germany-5-differences-from-france\/","title":{"rendered":"Mortgages in Germany: 5 differences from France"},"content":{"rendered":"
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Are you thinking of taking out a home loan in Germany, but have no idea how to get one? Can't understand the loan simulations offered on real estate websites? It's perfectly normal: mortgages in Germany don't work quite like they do in France. Whether you're looking to invest in rental property, become a homeowner in Germany or buy land, a house or an apartment on the other side of the Rhine, discover the 5 differences between mortgages in Germany and in France!<\/h4>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t<\/div>\n\t<\/div> \n<\/div><\/div>\n\t\t
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1. The rate can be variable<\/h2>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n
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The first major difference to be aware of is the very common practice of a\u00a0variable borrowing rate<\/b>. This means that, over the total term of the loan, you can define the length of time for which you want a certain rate to apply. This practice exists in France, but is very rare, and unlike France, there is no maximum ceiling on rate increases.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

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Short-term rates<\/h3>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n
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For example, you can sign your first 10-year mortgage with a fixed rate. The advantage? Because you're \u00abonly\u00bb committing yourself for 10 years, the rate offered is generally very attractive. The downside? You'll have to negotiate a new home loan with a new rate, in 10 years' time, for the remaining years to be repaid, with no guarantee as to the state of the market at that time. You therefore take the\u00a0risk<\/b>\u00a0to see your rate rise and therefore\u00a0your deadlines increase<\/b>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

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Long-term rates<\/h3>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n
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You prefer to play the\u00a0safety<\/b>\u00a0? In this case, you can set a fixed rate for a longer period, or even for your entire mortgage, as in France. The advantage? You know your monthly payments from the outset and\u00a0control your real estate budget<\/b>. The downside? Security comes at a price! The rates offered will be higher and your monthly payments will be higher, but stable.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

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Good to know: in Germany, the loan term is generally 10, 15 or 20 years. The rate varies according to various criteria: amount of down payment, type of property, fixed-rate term, etc.<\/p>\n<\/div>\n

Speaking of rates, you may be wondering whether you should wait until rates fall to buy? We discuss this question in detail in our article Mortgages in Germany: should you wait for rates to fall? - Expat Finance<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t<\/div>\n\t<\/div> \n<\/div><\/div>\n\t\t

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2. Renegotiation is virtually impossible<\/h2>\n<\/div>\n
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Unlike in France, where it's common to renegotiate a mortgage to obtain a more attractive rate, reduce repayment times or change the amount of your mortgage payments, it's not possible to redefine a mortgage in Germany. You must therefore\u00a0think carefully about the conditions<\/b>\u00a0of your loan before you sign. As part of this process, I'll help you take out a long-term mortgage that's tailor-made for you, taking into account\u00a02 criteria<\/b>\u00a0:<\/p>\n

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  • Safety<\/b>. This is the fixed-rate period to choose (see first point). The longer the fixed-rate period you choose, the more you control your budget over the long term, but the rate is generally higher.<\/li>\n
  • Flexibility<\/b>.\u00a0Short maturities<\/b>, possibility of\u00a0early repayment<\/b>,\u00a0low intake<\/b>\u00a0You need to decide in advance how flexible you want your loan to be. Unlike in France, early repayment of a fixed-rate loan is expensive and subject to very specific conditions. Flexibility, however, is a criterion not to be overlooked, as it allows you to make decisions and carry out new projects without this preventing you from repaying your loan: baby project, resignation, investment, etc.<\/li>\n<\/ul>\n

    I can also help you choose the\u00a0contribution amount<\/b>, You'll need to take into account your personal situation: age, assets, type of property, etc. Based on all these criteria, a loan rate will be defined.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

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    Are you wondering how long you should take out a mortgage, and what kind of downpayment you'll need? In my video, you'll learn about the three variables that help define a mortgage in Germany, so you can get a loan that's tailored to your personal, professional and financial situation.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n\t<\/div>\n<\/div>\n\n\n\n\n\t\t\t<\/div> \n\t\t<\/div>\n\t<\/div> \n<\/div><\/div>\n\t\t

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