Question 1

What is German Tilgung and how does it work?

Accepted Answer

Tilgung is the German term for principal repayment. In Germany, mortgages typically specify both an interest rate (Zinssatz) and a Tilgung rate (initial repayment rate, usually 1-3%). The monthly payment is calculated as (Interest Rate + Tilgung Rate) × Loan Amount ÷ 12. For example, with 3.5% interest and 1% Tilgung on €300,000, your monthly payment is (4.5% × €300,000) ÷ 12 = €1,125. As you pay down the principal, more of your payment goes toward repayment rather than interest.

Question 2

What are typical closing costs for buying property in Europe?

Accepted Answer

Closing costs vary significantly by country: Germany (8-15% total: 6.5% transfer tax, 1% notary, 7% agent if used), France (7-13%: 7-8% notary fees, 5% agent), Spain (11-16%: 10% ITP/IVA, 0.5% notary, 5% agent), Netherlands (3-6%: 2% transfer tax, 1.5% notary, 1.5% agent), Italy (12-15%: 9% registration tax, 2% notary, 3% agent). Always budget for these substantial upfront costs beyond your down payment.

Question 3

How much should I put as a down payment for a European mortgage?

Accepted Answer

Most European banks require 10-20% down payment minimum. In Germany, 20-30% is typical for best rates. France often requires 10-20%. Spain and Italy typically need 20-30%. Netherlands can be as low as 10% for first-time buyers. Larger down payments (30-40%) get better interest rates and avoid additional mortgage insurance costs. As a rule, aim for at least 20% to access favorable terms.

Question 4

What is a good mortgage interest rate in Europe in 2026?

Accepted Answer

As of 2026, typical mortgage rates in Europe: Germany 3.0-4.5%, France 3.5-4.5%, Spain 3.5-5.0%, Netherlands 3.5-4.5%, Italy 4.0-5.5%. Rates depend on loan-to-value ratio, loan term, and your creditworthiness. German rates tend to be lowest due to stable economy. Fixed-rate periods in Europe are typically 5, 10, or 15 years, after which rates adjust. Compare offers from multiple banks.

Question 5

Should I choose a fixed or variable mortgage rate in Europe?

Accepted Answer

Fixed rates provide payment stability and protection against rate increases. In Germany, 10-15 year fixed rates are popular (Zinsbindung). France often offers 15-25 year fixed rates. Variable rates start lower but can increase. Given recent rate volatility, most European buyers prefer fixed rates for at least 10 years. Consider your financial stability, risk tolerance, and how long you plan to stay in the property.

Month	Payment	Principal	Interest	Balance
1	900,00 €	200,00 €	700,00 €	239.800,00 €
2	900,00 €	200,58 €	699,42 €	239.599,42 €
3	900,00 €	201,17 €	698,83 €	239.398,25 €
4	900,00 €	201,76 €	698,24 €	239.196,49 €
5	900,00 €	202,34 €	697,66 €	238.994,15 €
6	900,00 €	202,93 €	697,07 €	238.791,22 €
7	900,00 €	203,53 €	696,47 €	238.587,69 €
8	900,00 €	204,12 €	695,88 €	238.383,57 €
9	900,00 €	204,71 €	695,29 €	238.178,86 €
10	900,00 €	205,31 €	694,69 €	237.973,54 €
11	900,00 €	205,91 €	694,09 €	237.767,63 €
12	900,00 €	206,51 €	693,49 €	237.561,12 €

EU Mortgage Calculator 2026

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💰 Closing Costs Breakdown (Germany)

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