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Mortgage
KrediteErwachsene
A loan secured by a property. Typical terms: 15–30 years. If you default, the bank may sell the property.
A mortgage (Hypothek) is a loan secured by a property. You buy a house for €400,000, put in €80,000 of equity and the bank lends you €320,000. In return, the property is entered in the land register as security.
Typical terms in Germany (2026): interest rate 3.0–4.0%, repayment 2–3%, fixed-rate period 10–15 years. With €320,000 at 3.5% interest and 2% repayment: monthly instalment approx. €1,467.
A mortgage is the most common "good" loan – because the property rises in value in the long run and you live in it.
Did you know? The word “mortgage” comes from Old French and means “dead pledge” – the German word “Hypothek” comes from Greek and means “pledge”: the property is the security for the loan.
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