Buying your first home in Germany starts with one question: how much do you need to have saved? The honest answer has two parts. There is the deposit itself, called Eigenkapital, and there are the purchase costs, called Kaufnebenkosten, which many first-time buyers underestimate.
This guide is general information, not financial or mortgage advice. For a decision about a specific loan, speak to a bank or an independent adviser.
The two parts of your upfront money
Your upfront cash has to cover two things:
- Deposit (Eigenkapital): the share of the purchase price you pay from your own savings. The rest is usually financed by a mortgage.
- Purchase costs (Kaufnebenkosten): taxes and fees that are paid on top of the price. Banks generally expect you to cover these from savings rather than borrow them.
A commonly cited rule of thumb is to bring around 20% of the purchase price as deposit. Lenders differ, and some will consider less. A smaller deposit usually means a larger loan, and that can affect the terms you are offered. Ask lenders what they require.
What are the purchase costs?
Several sources put total purchase costs at roughly 10 to 15% of the price. They break down like this:
- Real estate transfer tax (Grunderwerbsteuer): 3.5% to 6.5% of the price, depending on the federal state. Bavaria is at the low end at 3.5%. Brandenburg, North Rhine-Westphalia, Saarland and Schleswig-Holstein are at 6.5%.
- Notary and land registry fees (Notar- und Grundbuchkosten): about 1.5% to 2.0% of the price.
- Estate agent commission (Maklerprovision): up to 3.57% in total. The cost is normally shared between buyer and seller, and you pay nothing if the property is sold without an agent.
Rates change, so check the current rate for your state before you set a target.
A worked example
Take an illustrative purchase price of €400,000, with purchase costs of 10%, which is a modest assumption:
- Purchase costs: €40,000
- Deposit at 20%: €80,000
- Total upfront savings: €120,000
The same home with costs at 13% would need €132,000 upfront. This is why checking your state’s tax rate and the agent’s commission early matters. These numbers are an example only. Use your own target price and state.
Turning the total into a monthly target
A large figure feels easier once it becomes a monthly amount. Suppose you already have €20,000 and need €120,000 in five years:
- Subtract what you have: €120,000 − €20,000 = €100,000
- Divide by the months: €100,000 ÷ 60 = about €1,667 a month
If that is too much, the levers are a longer timeline, a lower target price or a smaller deposit. Try each and see what the monthly figure does.
Tips for first-time buyers
- Budget for the costs first. Treat the purchase costs as a separate savings pot so they don’t come as a surprise.
- Choose a target date. A date turns “someday” into a monthly plan.
- Track progress. Seeing the total grow keeps the habit going.
- Revisit the plan. Prices, rates and income change. Recalculate every few months.
Work out your own number
My Savings Plan is a free calculator and tracker. Enter your target price, what you have saved and your target date. You get a monthly and weekly savings figure, and you can track your progress toward your deposit.