Apart from the purchase price itself, several closing costs need to be paid. These include notary and land registry fees, real estate transfer tax, and the real estate agent's commission, all of which can quickly amount to 10% of the purchase price. You'll also need to cover the cost of a professional appraiser and any scheduled renovations. You can't pay these so-called "closing costs relating to the purchase of real estate" (Erwerbsnebenkosten) through your property financing, which means that if you can't afford to cover them out of pocket, you'll need to take out an additional loan.

It doesn't matter how amazing a property is if you can't afford to buy it (right now). Before you start searching, you need to figure out how much money you can borrow. For a rough estimate, take your monthly household income after taxes and multiply it by between 130 and 140.

All sorts. The KfW Bank, the German federal government, the federal states, and municipalities all run subsidy programs that typically require you to meet certain conditions, like income thresholds, to qualify. For some of them, you also need to be planning to live in the apartment or house yourself. If you're buying real estate as an investment, exciting subsidy programs are available for modernization and restoration, especially if the property requires energy-related rehabilitation. The KfW Bank, for example, subsidizes the re-insulation of roofs and the replacement of heating systems. You can find all the promotional loans and subsidies from the KfW on their website. And all of the German federal government's programs are available on the BAFA website.

We know that financing real estate can be a real headache. Here at Urbyo, we've got professionals who understand the territory inside and out and who want to make your life a whole lot easier. They can compare offers from over 400 banks for you and guide you every step of the way. Give it a try.

Getting approved for financing with little to no equity isn't the easiest. The bank will want to look at a range of factors — the most important of which is your creditworthiness — to decide if you qualify. Your Schufa credit report absolutely must be positive, and you need to have a substantial and regular income. If you are self-employed and can't show that your level of incoming work is consistent, you'll have a harder time getting approved for a zero-down mortgage. However, each bank has different requirements. Here's how we check with lenders to find you financing.

In addition to covering the closing costs, you'll also need to put down roughly 20% of the purchase price yourself. That creates less risk for both you and the bank, and it also enables you to get better conditions on your loan: which means paying less interest.

Generally speaking, it's also possible to finance a real estate purchase if you have little to no equity available. But there are specific prerequisites that you have to meet for this to work, and it must be calculated appropriately.