Do you dream of no longer paying rent and instead investing your money in your own property? Then, as a (new) Munich resident, you will need a larger budget: prices per square meter are often above €7,000 (as of 2025, depending on location and quality).

One advantage: Bavaria still has the lowest real estate transfer tax in Germany at 3.5%. When buying directly from a developer, there is often no brokerage commission.

Good to know: brokerage fees for purchase properties are now typically shared between buyer and seller. In total, they usually amount to around 7.14%, meaning approximately 3.57% per party (as of 2025).

And what about financing? The more equity you have, the better. As a rule of thumb, buyers should at least cover the additional purchase costs. In Bavaria, these typically amount to around 8–12% of the purchase price (including transfer tax, notary and land registry fees, and possibly agent fees).

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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 Bavaria a 3,5% land transfer tax. If a broker is also involved, there will be brokerage fees of up to 7.14 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: 1 000 €

Assumption:

- Interest rate: 2 %
- Repayment rate: 2 %

- Sundry costs: 12,14 %

From that follows...

Max. loan
1 000 € x 12 / (2 % + 2 %)
= 300 000 €

Max. purchase price
(50 000 € + 300 000 €) / 1,1214
= 312 110 €

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.

Securing the right financing is one of the key steps when buying property in Munich. With high purchase prices and a wide range of loan options, professional advice can make a significant difference.

Independent mortgage brokers and financial advisors compare offers from hundreds of banks and help buyers find a financing solution tailored to their individual needs. This includes choosing the right interest rate, repayment structure and fixed-rate period.

Especially for first-time buyers or international clients, the German financing system can seem complex. Financial advisors support the entire process – from budgeting and application to communication with lenders.

In many cases, professional advice not only saves time but also leads to better conditions. Comparing multiple offers is essential, as even small differences in interest rates can have a major impact over the lifetime of a loan.

Whether you work directly with a bank or with an independent advisor, careful planning and expert guidance are key to securing the best possible financing.

Baufi24
Independent provider comparing offers from more than 450 banks to secure fast loan approvals with minimal bureaucracy. Also offers support with property searches and valuations.
›› Advice line: Tel. 0800 8084000, www.baufi24.de

Dr. Klein
One of Germany’s largest financial service providers with over 60 years of experience in mortgages, insurance and personal loans, with advisors at around 200 locations.
›› Hansestr. 14, 23558 Lübeck, Advice line: 0800 8833880, www.drklein.de

Interhyp
Award-winning mortgage specialist with advisors at more than 100 locations and extensive expertise in property financing.
›› Advice line: 0800 200151515, www.interhyp.de

MLP
Independent financial advisor covering financing, insurance, retirement planning and wealth management, with around 1,900 advisors across Germany.
›› Alte Heerstr. 40, 69168 Wiesloch, Tel. 06222 3086000, www.mlp.de

New developments play a key role in Munich’s property market – both for owner-occupiers and investors. Given the consistently high demand and limited supply, newly built properties are often one of the few ways to access modern housing in the city.

In recent years, numerous new districts have been created or are still under development – from large-scale projects such as Freiham in the west to inner-city areas like the PaketPost site or Werksviertel. The range of properties extends from compact apartments to high-end condominiums in prime locations.

However, not every new development is automatically a typical ownership market: in many quarters, the focus is on rental housing, subsidised units or cooperative models. Buyers should therefore carefully check which projects actually offer units for sale on the open market.

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