Germany: Use the free mortgage calculator to check repayment options
Types of mortgages in Germany
The mortgage most suited to an expat depends on income, lifestyle, and personal circumstances. These are the main types of mortgages available in Germany.
Annuity mortgage
This is the most common type of mortgage in Germany. With an annuity mortgage, you pay a fixed amount each month over the term of the loan. This includes both the interest and the principal (the amount you borrowed). The amount of interest you pay each month decreases as the principal balance decreases, so your monthly payments stay the same.
End-of-term mortgage
With an end-of-term mortgage, you only pay interest on the loan during the term. The principal is then repaid in a lump sum at the end of the term.
Interest-only mortgage
With an interest-only mortgage, you only pay interest on the loan for the first few years. You then start to repay the principal. This type of mortgage can be useful if you are expecting your income to increase in the future.
Variable-rate mortgage
With a variable-rate mortgage, the interest rate you pay is linked to a benchmark rate, such as the Euribor. This means that your monthly payments can fluctuate depending on market conditions.
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