Structures of Residential Property Finance 2019 in Germany

The Association of German Pfandbrief Banks (Verband deutscher Pfandbriefbanken) conducted a survey in 2019 of the structure of financing for owner-occupied houses and flats among member institutions that operate in this business field.

The survey therefore focused on the following questions:

  • How has home ownership financing changed in Germany?
  • What are the dynamics behind house prices and private household incomes?
  • Do the continuous price rises mean that residential property is increasingly being financed through loans?
  • What proportion of their income do property buyers have to spend in order to service their loan?
  • How high is the initial loan amortization and what fixed-interest periods are borrowers choosing?
  • What regional or income bracket-specific differences are there in home ownership financing?

The study has been carried out every two years, so this report also provides a very good overview of the changes in the individual indicators since the financial crisis. During this period, the prices for owner-occupied housing in relation to the disposable incomes of borrowers have risen significantly, with the result that the property price-income ratio has reached a level last seen in the 1990s.

The study "Structures of Residential Property Finance 2019" - Results of a survey conducted among the member institutions of the Association of German Pfandbrief Banks (vdp)" can be downloaded here.