Your first step to a German home: Hypofriend's mortgage calculator

Are you an expat dreaming of owning a home in Germany but feeling overwhelmed by the mortgage process? You’re not alone. German mortgages can be challenging, especially with unfamiliar terms, complex regulations, and additional costs. The language barriers and unique mortgage structures can make the process even more daunting for expats. But that’s where Hypofriend’s mortgage calculator comes in.

With Hypofriend's tools, you can make confident, well-informed decisions about your future in Germany.

Whether you’re just starting to explore your options or are ready to take the next step, Hypofriend’s smart mortgage calculator can help you understand the journey. Hypofriend gives you the insights and tools you need to make confident decisions for your home-buying process and financial planning.

Let’s look at how this calculator tool can turn your homeownership dreams into reality.

Why Hypofriend’s calculator is your solution

Exploring German mortgages as an expat can be tricky, especially with unique terms like “Tilgung” (repayment) and "Zinsbindung" (fixed interest period) that might differ from what you're used to in other countries. Here's how Hypofriend’s calculator makes it easy for you:

• Personalised results: Input your unique financial situation for tailored advice.
• Multilingual support: Choose from English or German - no translation headaches!
• Expert insights: Benefit from Hypofriend’s deep understanding of German mortgage rules and personalised advice.

Understanding “Tilgung” and “Zinsbindung” in Germany

Two key components of the German mortgage system are "Tilgung" (repayment) and "Zinsbindung" (fixed interest period), which differ from mortgage structures in other countries.

Tilgung (repayment)

In Germany, you can choose your repayment rate. It can sometimes be as low as 1%, but 2 or 3% is more typical. If you pick a low repayment rate, it takes longer to pay off your mortgage. This contrasts with nearly all other countries, like the US, which require the loan to be repaid in 30 years. There, you have no choice. But in Germany, you need to be advised on what is best. The calculator allows you to simulate the results.

If you have alternatives for your money, like ETFs, or you want to invest in a second home, a low repayment rate is typically advisable. Most of the time, a lower repayment rate does not worsen your interest rate, but that is not the case for all banks. France offers similar fixed-rate options but is less flexible, while Spain and the UK rely more on variable-rate mortgages, making repayments less predictable.

Zinsbindung (fixed interest period)

In Germany, you can choose nearly any fixed interest rate period, but the most competitive rates are for five, 10, or 15 years, after which refinancing is required. In most other countries, you can choose a variable rate, which is cheaper but more variable and therefore much riskier. In Germany, such variable rates are very costly, and even the five-year rate is relatively expensive, so very few people go for these short terms of fixing their fixed rate.

When choosing your fixed rate term, you should bear in mind that if you leave your house earlier or want to refinance your mortgage earlier, you may be subject to penalties. In the US, you would not pay such penalties. In the Netherlands, you would. What makes the penalties unique and hard to calculate in Germany is that they are smaller if your mortgage allows you special early repayment (usually 5% per year). There is no penalty after 10 years!

Many people opt for a 10-year fixed-rate period, but there are circumstances where the small additional cost for a longer fixation makes a lot of sense. Hypofriends' calculator is very special as it allows you to see different interest rate scenarios and then visualise and calculate the impact on your mortgage cost!

Simple steps to mortgage clarity

Ready to take control of your home-buying journey? Using Hypofriend’s mortgage calculator is easy. Here’s how it works:

1. Enter your details: Start by providing key information, such as the purchase price, your income, savings, the property location, and your preferences, such as monthly payment and fixed interest period.
2. Hit calculate: Instantly receive insights into your borrowing capacity, repayment plan, and monthly payments. The calculator also shows how different fixed interest periods and rates affect your loan and how your equity and loan will cover additional costs. You can also explore different interest rate scenarios to see how they impact your overall repayment.
3. Adjust your preferences: Fine-tune factors such as the loan amount, down payment, and repayment term. The calculator updates the results in real-time, showing how changes affect your monthly payments and overall borrowing potential.
4. Get personalised offers: Once you’re satisfied with your results, you can request a tailored financing proposal by clicking the “Request Offer” button. This step provides detailed, personalised mortgage advice based on your situation.

Beyond the numbers: Real value for expats

Hypofriend’s calculator doesn't just crunch numbers - it empowers you with transparent insights:

• Transparent breakdown: See all costs involved, including expenses like real estate commission and property transfer tax.
• Interest rate impact: Understand how different fixed interest periods ("Zinsbindung") and scenarios affect your monthly payments and overall mortgage cost.
• Down payment insights: Discover how adjusting your down payment affects your mortgage terms, such as reducing monthly payments or shortening the loan period.

Expert support when you need It

While the mortgage calculator is an invaluable tool, for the real deals, you need to talk to an expert. Special factors like your residency status affect the offers, as well as environmentally friendly housing with special rates, and special government funding programmes.

Also, Hypofriend cannot summarise all 750 banks in their calculator - they have access to more banks than all the big brokers. That’s where Hypofriend’s team of experienced bilingual advisors comes in.

Hypofriend has custom-built software that shows you all the decisions and their impact on your finances. It also has criteria such as interest rate outlook, risk assessments, and return calculations that help you make the best decision. Their advisors take a holistic approach, evaluating your entire financial picture to provide personalised mortgage advice tailored to expats.

The founders

Founders Pavel Jurasek (CTO), Nick Mulder (CEO) and Dr Chris Mulder (CFO) developed Hypofriend’s unique approach to personalised mortgage advice and are dedicated to making sure expats have a smooth, transparent experience. 

Ready to make your German property dream a reality?

IReady to make your German property dream a reality? If German mortgages have felt overwhelming, Hypofriend’s free, easy-to-use mortgage calculator offers a clear overview of your options. Whether you’re just starting or ready to move forward, the tool shows how much you can borrow, your monthly payments, and how different rates and terms impact your mortgage.

For a more personalised approach, Hypofriend’s expert advisors are available for free consultations. With access to over 750 banks, they provide tailored advice to help you make the best financial decisions for your situation.