How much deposit do you need to buy a home in Germany?
Separate buying costs, your deposit and a cash reserve. A transparent example helps you prepare the budget and questions for your lender.
Last updated: 18 September 2026
Contents
Three separate amounts—not one deposit percentage
Start with liquid savings that will be available when the purchase completes. Deduct a reserve for emergencies and planned expenses. Then budget for buying costs. The amount left can reduce the loan used to pay the seller. This separates cash you own from cash you can safely commit.
Approval also depends on income, existing debts, credit history and the property. The lender’s valuation can differ from the price you agree. More savings do not compensate automatically for a monthly payment that your household cannot sustain.
Example: €100,000 savings and a €400,000 property
Assume €20,000 is kept as a reserve, leaving €80,000 available. For the Saxony example in our buying-cost guide, transaction costs total €44,280. This leaves €35,720 towards the price and a purchase-price loan of €364,280. These are budgeting assumptions, not a lending offer or a recommended reserve for every household.
See the tax rate and each assumption behind the €44,280 costs
Calculate another version with a higher repair budget or lower available savings. If the monthly payment or cash requirement becomes unmanageable, revisit the purchase price rather than relying on future pay rises or an unconfirmed subsidy.
What to document for the lender
- Savings: account holder, balance and availability at completion.
- Investments: realistic sale proceeds, timing, taxes and market risk.
- Family support: distinguish an outright gift from a loan with repayments.
- Existing property: do not treat estimated equity as immediately available cash.
- Own labour: agree any recognised amount with the lender; it does not pay tax or notary invoices.
Low-deposit financing and funding
Borrowing the entire price, or the price plus transaction costs, increases debt and exposure if the property must be sold. Availability and pricing depend on the lender and case. Ask for a written breakdown rather than treating “100% financing” as a promise that every cost is covered.
KfW and regional programmes may be worth checking, but they have their own eligibility and application rules. Check the current programme and the required application timing before committing. Do not count an unapproved grant as available savings.
Frequently asked questions
Is a 20% deposit compulsory?
There is no universal lender policy requiring exactly 20%. Approval depends on affordability, the property valuation, available security and the lender’s criteria. A percentage alone cannot tell you whether a mortgage will be approved.
Do I have to use all my savings?
Not necessarily. A larger contribution reduces the loan, but leaving no reserve can make repairs or income changes difficult to manage. Decide on a reserve before calculating the amount available for the purchase.
Does a subsidised loan count as my own savings?
A subsidised loan is still debt, not cash savings. Account for its repayments and eligibility conditions separately. Ask the lender how it treats other funding and family support.
Sources and editorial scope
Source check and editorial revision: 18 September 2026. The linked German-language primary sources take precedence. Examples are illustrative, not offers. This guide provides general information, not individual financial, tax or legal advice. A lender must assess your specific circumstances.