How much equity do I need for a flat?

Last updated: 12 October 2026 · under the rules from 1 January 2027 · Publisher: INTERNA · responsible: Marc A. Schnitzler, in mortgage financing since 2005

As a rule of thumb, at least enough of your own money (equity) to cover the additional buying costs. These are property transfer tax, notary, land register and estate agent, in North Rhine-Westphalia together about €12 for every €100 of the purchase price. For a flat costing €200,000 that is a good €24,000. Many banks do not finance this part. With the home-ownership pension (Eigenheimrente), from 2027 the state adds money while you save, if you are eligible: up to €540 a year per person for €150 a month.

Additional buying costs in North Rhine-Westphalia

Purchase price	Property transfer tax 6.5%	Notary and land register about 2%	Estate agent, usually 3.57%	Additional costs in total
€150,000	€9,750	€3,000	€5,355	€18,105
€200,000	€13,000	€4,000	€7,140	€24,140
€300,000	€19,500	€6,000	€10,710	€36,210

The property transfer tax (Grunderwerbsteuer) is the tax on the purchase. In other federal states the rate is different. The estate agent’s share only applies if an estate agent is involved. If you only want to borrow €90 of every €100 of the purchase price, for €200,000 you need about €44,100: the additional costs and €20,000 of the purchase price. Whether and on what terms a bank provides financing depends on your income and the flat.

What the state adds while you save

Who saves	Contribution per month	Time	own money	from the state	total
one person	€150	10 years	€18,000	€5,400	€23,400
two people	€150 each	5 years	€18,000	€5,400	€23,400

Calculated without interest and without contract costs, if each person is eligible. As a couple, after five years this covers almost all the additional costs of a flat costing €200,000. With children, up to €300 a year per child is added, more for families.

How the balance becomes equity

You can use the balance including the subsidies to buy or build the home you live in yourself, from €3,000 and if the contract terms provide for it. With it you pay, for example, property transfer tax, notary and estate agent, and your loan becomes smaller. If you do not buy, you can pause your payments into the contract, transfer it to another subsidised contract or receive the balance as a pension in old age.

What you use for your home is recorded by the central subsidy office (Zulagenstelle) in your home subsidy account (Wohnförderkonto). You only pay tax on this amount in old age, spread over the five years after your pension starts. Until then you live in the home yourself. If you sell earlier or move out for good, the remaining amount is taxed all at once, unless you buy a new home of your own within fixed deadlines. You keep the subsidies in both cases. Your advisor shows you the deadlines.

Later even more: the home savings loan

After the savings period, the building society (Bausparkasse) can also give you a loan, with an interest rate that is fixed from the start. How the home savings loan works.

How much subsidy does your household get? The subsidy calculator works out in one minute how much subsidy you can get. An advisor then checks with you whether everything fits your situation. This conversation is free of charge and in English.