Loan for deposit and estate agent fees: How to finance your move cleverly
11/06/2025
6
Minutes
Katrin Straub
Managing Director at nextsure
You've found your new flat, but the deposit and estate agent's fees are stretching your budget? That doesn't have to be the end of your dream home. A loan for the deposit and estate agent's fees when moving provides immediate liquidity and preserves your savings for furnishing it.
The topic in brief and concise terms
A loan for a deposit and broker fees is often cheaper than an overdraft and preserves private savings.
The rental deposit is limited by law to three months’ net cold rent and may, under Section 551 of the German Civil Code (BGB), be paid in three instalments.
A rental deposit insurance policy is a cost-effective alternative to a cash deposit, where you only pay a small annual fee.
The moving cost trap: deposit and estate agent fees as a brake on liquidity
A move is associated with significant one-off costs, which are often underestimated. The rental deposit is one of the biggest items and is legally capped at a maximum of three net cold rents. For a cold rent of 900 euros, that already means 2,700 euros that must be lodged as security. Although the law allows payment in three instalments, many landlords demand the full amount before handing over the keys.
Additional estate agent fees may also apply, even though the “whoever commissions the agent pays” principle has applied since 2015. If the landlord instructs the estate agent, they pay them too. However, if you actively search through an estate agent, costs of up to two cold rents plus VAT can arise. For our example, that means an additional 2,142 euros. In total, the pure ancillary moving costs therefore amount to almost 5,000 euros, before the first moving box has even been packed. This sum often exceeds the short-term funds available to many households. Careful household budgeting before the move is therefore essential.
This initial financial hurdle can make the start of a new life more difficult and forces many people to resort to expensive overdraft facilities or to cash in savings that were intended for other purposes.
The instalment loan as a flexible solution for moving costs
A personal instalment loan is often the most economical way to bridge the gap for the deposit and estate agent fees. Unlike an overdraft, whose interest rates are often above ten per cent, instalment loans usually offer much more favourable terms. The effective annual interest rates for consumer loans often range between three and eight per cent, depending on creditworthiness. This keeps the financial burden manageable.
The advantages of such a loan are obvious:
Protecting your savings: Your reserves for emergencies or the new furnishings remain untouched.
Planning certainty: Fixed monthly instalments over an agreed term of, for example, 24 or 36 months make costs predictable.
Quick availability: After a positive assessment, the money is often in your account within 48 hours.
Flexible use: A loan for any purpose can also be used for renovations or new furniture.
A loan of 5,000 euros at four per cent interest and a 36-month term results in a monthly instalment of around 148 euros. The total cost of the loan comes to only around 328 euros. This is a manageable sum for the financial freedom gained. Such a quick loan for unforeseen expenses can significantly reduce moving stress.
But before you sign a contract, a close look at the alternatives and the legal details is crucial.
Expert tips: Explore alternatives to a cash deposit and save money
A loan is not always the only or best solution. There are alternatives that can also protect your liquidity. One of the most popular options is the rental deposit guarantee, often also referred to as rental deposit insurance. In this case, an insurer or a bank guarantees on your behalf instead of you having to lodge the deposit amount in cash. The costs for this are comparatively low.
Here is an overview of the most common alternatives:
Rental deposit insurance: You pay an annual fee of around four to five per cent of the deposit amount to an insurer. For a deposit of 2,700 euros, that would be around 122 euros per year. The big advantage: your money remains freely available.
Bank guarantee (bank aval): Similar to insurance, except that your house bank provides the guarantee. However, this can affect your credit line and is offered less frequently by banks.
Statutory instalment payments: Under Section 551 of the German Civil Code (BGB), you have the right to pay the cash deposit in three equal monthly instalments. The first instalment is due at the start of the tenancy. Many tenants are not aware of this right.
Our expert tip: Proactively speak to your new landlord about a rental deposit insurance. Many landlords accept this modern form of security because it is managed professionally and allows quick access in the event of a claim. You avoid the large one-off payment and only pay a small annual premium. That leaves more money for the nice things, such as furnishing your first home of your own.
The right choice depends on your financial situation and the landlord's willingness to cooperate. A careful review of the legal basis is essential.
Legal basics: What tenants need to know about deposits and commission
A solid knowledge of your own rights significantly strengthens your position as a tenant. For the rental deposit, section 551 of the German Civil Code (BGB) is the decisive legal basis. It clearly states that the security amount may not exceed three months’ net rent. It is also important to note: flat-rate service charges must not be included in the calculation.
As regards estate agent fees, the Tenancy Mediation Act (WoVermRG), which enshrines the client-pays principle, has applied since 1 June 2015. That means: whoever commissions the estate agent also pays them. If an estate agent breaches this and unlawfully demands a commission from you, you can reclaim it for up to three years. Be alert to hidden charges disguised as “processing” or “contract” fees; these are also impermissible.
Our expert tip: insist on your right to pay the deposit in instalments. Under section 551(2) of the BGB, an agreement obliging you to pay the entire sum at once is invalid. You can always pay the deposit in three equal instalments at the start of the first three rental months. A quickly arranged online loan can certainly help, but with knowledge of the legal position, you may not even need the full amount.
With this knowledge, you can now plan the next practical steps to finance your move.
Step by step to a relocation loan: A practical guide
Once the decision to take out a loan has been made, a structured approach secures the best terms. A typical personal loan for a move is usually not tied to a specific purpose and can therefore be used flexibly. The application process today is usually fully digital and often takes only a few minutes. The bank checks your creditworthiness, for which regular income and a positive Schufa report are crucial.
Follow these five steps for a successful application:
Determine your needs: Calculate all costs – deposit, estate agent, removal company, renovation and, if necessary, a ten per cent buffer for unforeseen expenses.
Compare offers: Use online comparison portals to check the interest rates and terms of different banks. Pay attention to the APR.
Prepare documents: Have your identity card, the last three payslips and your bank statements ready.
Submit the application: Complete the online application. Thanks to digital identity verification (video identification) and digital signature, this often requires no paperwork.
Wait for the payout: After approval, the loan amount is often in your account within just one to two working days.
A well-planned furniture loan can often be combined with the moving loan. This way, you finance everything from a single source. A low-cost renovation loan can also be part of the overall sum.
Once the financing is in place, you can look forward to your new home with peace of mind.
Request your individual risk analysis now
Moving house is more than just a change of location – it is an investment in your future. Financing the deposit and estate agent fees should not be an obstacle. With the right planning, whether through a suitable loan or a smart alternative such as rent deposit insurance, you can master this financial challenge with confidence. Careful preparation not only protects your savings, but also gives you the reassurance you need for a successful start.
Have your insurance situation checked free of charge and receive concrete suggestions for improvement.
More useful links
Laws on the Internet provides Section 551 of the German Civil Code (BGB), which sets out the rules on rental security deposits (security deposits) in detail.
Laws on the Internet provides Section 652 of the German Civil Code (BGB), which governs brokers’ entitlement to commission.
Wikipedia offers a comprehensive article on rental security deposits (security deposits).
Deutsche Bundesbank publishes statistics on interest rates and yields on consumer loans (instalment loans) for private households.
Statista offers statistics on the level of average expenses incurred when moving house.
Federal Statistical Office (Destatis) provides comprehensive information and statistics on housing.
German Tenants' Association offers information and support for tenants in Germany.
FAQ
What requirements are there for a loan for the deposit?
The main requirements are being of legal age, an address and a current account in Germany, a regular income from permanent employment (at least six months), and sufficiently good creditworthiness (Schufa score).
How quickly is a relocation loan paid out?
For online loans, disbursement often takes place very quickly after successful digital application review. In general, you can expect the funds to be credited to your account within one to three working days.
Can I deduct moving expenses from my taxes?
Yes, if you move for work, you can claim many costs, including estate agent fees for rental properties, as work-related expenses. If you move privately, you can claim costs for tradespeople or the removals company as household-related services, which can also reduce your tax burden.
What happens to the rental deposit insurance at the end of the tenancy?
At the end of the tenancy, you cancel the rental deposit insurance. For this, you need a release declaration from the landlord confirming that no claims remain. The annual premiums paid are not refunded.
Who pays the letting agent for a rental flat?
In Germany, the buyer pays the agent’s fee. This means that the person who instructed the estate agent must also pay them. In most cases, that is the landlord. You only have to pay the commission if you explicitly commission an estate agent to search for a flat on your behalf.
What is the difference between a deposit loan and a standard instalment loan?
A rental deposit loan is essentially a standard instalment loan that is advertised for a specific purpose. There are no technical differences; it is an unrestricted-purpose loan that you can use for the deposit, agency fees, furniture or other expenses related to the move.
