# How Do Mortgages Work in Germany? Rates by Lender (2026)

> German Baufinanzierung explained: Sollzins, Effektivzins and Zinsbindung, the PAngV representative example, and what ING, Commerzbank, DKB, Interhyp, Dr. Klein and Baufi24 quoted in August 2026.

By Jules de Bruin · URL: https://www.guide-germany.com/finance/mortgages

A German Baufinanzierung is quoted as a Sollzins and an Effektivzins held for a Zinsbindung, the agreed fixed period, most often ten years. Ten-year fixes sat in a **3.6 to 4.2%** effective corridor in August 2026. Only **ING** publishes a full representative example, at **4.38%** effective on EUR 300,000 over a 15-year fix at 85% loan to value. Most other lenders and every broker price on application, so treat their headline figures as averages or best cases, not offers.

## How Do German Mortgages Work?

Three numbers define a German mortgage offer. The **Sollzins** is the nominal interest rate. The [**Effektivzins**](/finance/loans) is the effective rate that carries the cost of the credit, and it is the only figure worth comparing between banks. The **Zinsbindung** is how long the rate is locked. Alongside them sits the initial repayment rate, the anfaengliche Tilgung, which sets how fast the balance falls. Where a lender publishes a representative example under the **Preisangabenverordnung**, all of these are stated together: ING's example is EUR 300,000 over a 15-year fix with 3% initial repayment, 85% loan to value on a property valued at EUR 352,941, at 4.27% Sollzins and 4.38% effective, status 17 August 2026.

## How Much Deposit Do You Need?

German lenders price on the **Beleihungsauslauf**, the loan as a share of the property value, and the published rates make the pattern plain. **Dr. Klein**'s best case of 3.71% assumes roughly 50 to 60% loan to value, a high income and at least 2% initial repayment. **Commerzbank** quotes its prime profile at 60 to 80%. **Baufi24**'s panel average of around 4.1% uses an 80% reference profile. **ING**'s representative example runs at 85%, and its own note is that a different deposit changes the rate. **DKB** will lend up to 100% loan to value, but with a rate premium for doing so.

## What Rate Will You Pay?

| Lender | Effective rate?effective rateEffektiver Jahreszins: the yearly cost of the credit with every fee included. The one number that makes two loans comparable, and the figure German lenders must advertise. | Nominal rate?nominal rateSollzinssatz: the bare interest rate before fees. Always lower than the effective rate, so never compare loans on it alone. | Fixed period?fixed periodSollzinsbindung: how long the rate is locked. When it ends you refinance the remaining balance at whatever rates are current, which is the main risk in a German mortgage. |
| --- | --- | --- | --- |
| [Dr. Klein](https://www.drklein.de/bauzinsen.html) | 3.71% | n/a | 10-year fixed |
| [ING](https://www.finanztip.de/baufinanzierung/bauzinsen/) | 4.38% | 4.27% | 15-year fixed, 3% initial repayment |
| [Commerzbank](https://www.finanztip.de/baufinanzierung/bauzinsen/) | priced on application | n/a | 10-year fixed |
| [Deutsche Bank](https://www.finanztip.de/baufinanzierung/bauzinsen/) | priced on application | n/a | 10-year fixed |
| [DKB](https://www.finanztip.de/baufinanzierung/bauzinsen/) | priced on application | n/a | 10-year fixed |
| [Interhyp](https://www.interhyp.de/zinsen/) | priced on application | n/a | 10-year fixed |
| [Baufi24](https://www.finanztip.de/baufinanzierung/bauzinsen/) | priced on application | n/a | 10-year fixed |
| [Huettig & Rompf](https://www.finanztip.de/baufinanzierung/bauzinsen/) | priced on application | n/a | bespoke, quoted per applicant |
| [Targobank and Santander](https://www.finanztip.de/baufinanzierung/bauzinsen/) | priced on application | n/a | quoted per applicant |
August 2026. German mortgage rates track the Pfandbrief market and move weekly. Commerzbank, Deutsche Bank, DKB, Interhyp, Baufi24, Huettig & Rompf, Targobank and Santander publish no stable representative example and quote each applicant individually.

Ten-year fixes sat inside a **3.6 to 4.2%** effective corridor through August 2026: **Interhyp**'s trend barometer averaged roughly 3.8% in July, **Baufi24**'s panel roughly 4.1% at 80% loan to value on 5 August, and **Dr. Klein** published a 3.71% top case on 3 August. **Commerzbank** starts around 3.9% effective for prime profiles with its representative example nearer 4.2 to 4.4%, and **DKB** sits at roughly 3.8 to 4.2% through its online calculator. For scale, the eurozone money-market reference rates averaged 2.855% on 12 months and 2.647% on 6 months in July 2026; those are eurozone-wide benchmarks, and German fixed rates follow the Pfandbrief market rather than them. Bauzinsen move weekly, so any quote is a snapshot of its date.

## Which Lenders Quote Only on Application?

Commerzbank, Deutsche Bank, DKB, Interhyp, Baufi24, Huettig & Rompf, Targobank and Santander publish no stable representative example and quote each applicant individually. That is not a warning sign in itself, it simply means there is no price to compare before you apply: **Deutsche Bank** runs an advisory process through its [branch network](/finance/commercial-banks), **Targobank** and **Santander** both price in branch, and the brokers quote whatever their partner banks return for your profile. Because those figures cannot be ranked, the practical move is to get ING's published example as your reference point and ask each of the others to beat it on the effective rate for the same loan amount, fixed period and deposit.

## Related Guides

[### Loans Overview.](/finance/loans)[### Loans Price Research Rate table.](/finance/loans-price-research)[### Personal Loans Consumer credit.](/finance/personal-loans)[### Open Bank Account Banking first.](/finance/open-bank-account)

## Frequently Asked Questions

### Should I go through a mortgage broker?

A broker compares banks it does not own: Interhyp works with over 800 partner banks, Huettig & Rompf with around 700 and in-person advice in Frankfurt, Dr. Klein with around 600 plus access to the Europace platform, and Baufi24 with around 400. In every case the mortgage contract is with a partner bank, not with the broker, and the rate a broker publishes is a market average or a top case rather than an offer to you.

### What is a Zinsbindung?

The Zinsbindung is the period for which your rate is contractually fixed. Ten years is the common shape across the lenders surveyed, and ING's published representative example runs to fifteen. It matters because Bauzinsen track the Pfandbrief market and move weekly: the fixed period is what stops your instalment moving with it.

### Why do published mortgage rates differ so much?

Because they measure different things. Dr. Klein's 3.71% on 3 August 2026 is a top case for a prime borrower at roughly 50 to 60% loan to value with at least 2% initial repayment. Interhyp's roughly 3.8% is a July 2026 trend-barometer average. Baufi24's roughly 4.1% on 5 August 2026 is a panel average at 80% loan to value. ING's 4.38% is a full representative example under the Preisangabenverordnung at 85% loan to value. Only the last of those is a quotable price.

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