1. household costs 
The bank checks that the finance can be paid back taking into account living, ancillary and other costs. For the costs, the banks usually work with flat rates. Regardless of the bank’s check, you should also determine for yourself what you can afford.

2. Own capital
A contribution from your own capital and other assets (life insurance, other real estate, etc.) and grants can significantly improve financing terms.

3. Extra costs
In addition to the purchase price, there are other costs, such as 1.5% notary fees and in Berlin a 6% land transfer tax. If a broker is also involved, there will be brokerage fees of up to 3.57 percent.

4. Your budget
Everything covered? It’s time to calculate your budget. Your capital must cover at least the purchase costs. If you still have capital, you can use it to reduce interest rates on your overall loan. The better the ratio of loan amount to the purchase price, the cheaper the interest. You can estimate your maximum possible loan as follows: (desired monthly rate x 12) / (interest rate + repayment rate).

budget calculation example: 

Own capital: 50 000 €
Desired monthly rate for interest and repayment: 1 500 €

Assumption:

- Interest rate: 2,5 %
- Repayment rate: 2 %

- Sundry costs: 11,07 %

From that follows...

Max. loan
1 500 € x 12 / (2 % + 2,5 %)
= 400 000 €

Max. purchase price
(50 000 € + 400 000 €) / 1,1107 
= 405 150 €

5. Getting finance  
Germany’s high number of banks – some 400 in all – works in favor of customers. Besides the actual loan amount many other things are relevant when you create a finance plan. These can quickly add up to several thousand euros plus or minus. Independent financial advisers will create an individual financing plan and compare the conditions offered by the many banks.