Credit for Deposit and Broker: How to Finance Your Move Cleverly
11 Jun 2025
5
Minutes
Katrin Straub
CEO at nextsure
Found the new apartment, but the deposit and brokerage fees are breaking your budget? That doesn't have to be the end of your housing dream. A loan for the deposit and brokerage fees when moving provides immediate liquidity and preserves your savings for furnishing.
The topic in brief and concise terms
A loan for deposit and brokerage fees is often cheaper than an overdraft and preserves personal savings.
The rental deposit is legally limited to three net cold rents and, according to § 551 BGB, may be paid in three instalments.
A rental deposit insurance is a cost-effective alternative to a cash deposit, where you only pay a small annual fee.
The Cost Trap of Moving: Deposit and Brokerage Fees as a Brake on Liquidity
Moving involves significant one-off costs that are often underestimated. The rental deposit is one of the largest expenses and is legally capped at a maximum of three months' net rent. For a rent of 900 euros, this means a deposit of 2,700 euros is required as security. Although the law allows payment in three instalments, many landlords demand the full amount before handing over the keys.
Additionally, there may be estate agent fees, even though the 'Bestellerprinzip' has been in effect since 2015. If the landlord commissions the agent, they also pay for them. However, if you actively seek through an agent, costs of up to two months' rent plus VAT can arise. In our example, this means an additional 2,142 euros. In total, pure moving ancillary costs amount to almost 5,000 euros, even before the first moving box is packed. This amount often exceeds the short-term available funds of many households. Therefore, a well-thought-out household budget before moving is essential.
This initial financial hurdle can weigh heavily on starting a new life, forcing many to resort to expensive overdrafts or to dissolve savings intended for other purposes.
The installment loan as a flexible solution for moving costs
A personal loan is often the most economical way to bridge the gap of deposits and broker fees. Unlike overdraft accounts, which can have interest rates often exceeding ten per cent, personal loans usually offer noticeably 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:
Preservation of savings: Your emergency reserves or funds for new furnishings remain untouched.
Planning certainty: Regular monthly instalments over an agreed period, for example, 24 or 36 months, make the costs predictable.
Quick availability: Once approved, the money often reaches your account within 48 hours.
Free use: A loan with unrestricted use can be employed for renovations or new furniture.
A loan of 5,000 euros at four per cent interest over a term of 36 months results in a monthly instalment of approximately 148 euros. The total cost for the loan amounts to roughly only 328 euros. This is a manageable amount for the financial freedom gained. Such a quick loan for unforeseen expenses can significantly reduce moving stress.
However, before signing a contract, it is crucial to carefully examine alternatives and the legal details.
Expert Tips: Explore Alternatives to Cash Deposits and Save Costs
A loan isn't always the only or best solution. There are alternatives that can also preserve 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 the deposit on your behalf, instead of depositing the 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 about 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 (Bankaval): Similar to insurance, only it's your bank that provides the guarantee. However, this can affect your credit line and is less frequently offered by banks.
Legal Instalment Payment: According to § 551 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 unaware of this right.
Our Expert Tip: Proactively discuss rental deposit insurance with your new landlord. Many landlords accept this modern form of security as it is professionally managed and offers quick access in the event of a claim. You save the large one-off payment and only pay a small annual premium. This leaves more money for things you enjoy, like furnishing your first own apartment.
The right choice depends on your financial situation and the landlord's willingness to cooperate. A thorough review of the legal basis is essential.
Legal Foundations: What Tenants Need to Know About Deposits and Commissions
Extensive knowledge of your own rights significantly strengthens your position as a tenant. For the rental deposit, § 551 of the Civil Code (BGB) is the decisive legal basis. It clearly stipulates that the security amount must not exceed three net cold rents. Also important: Operating cost lump sums must not be included in the calculation.
As of the first of June 2015, the Housing Mediation Act (WoVermRG) applies to brokerage fees, which establishes the ordering principle. This means: Whoever commissions the broker also pays them. If a broker violates this and unlawfully demands a commission from you, you can reclaim it for up to three years. Watch out for hidden fees disguised as 'processing' or 'contract fees'; these are also impermissible.
Our expert tip: Insist on your right to pay the deposit in instalments. According to § 551 paragraph 2 BGB, an agreement that obligates you to pay the entire sum at once is invalid. You can always pay the deposit in three equal parts during the first three months of renting. A quickly applied-for online loan can be helpful, but knowing the legal situation might mean it's not necessary in full.
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 for a loan has been made, a structured approach ensures the best conditions. A typical personal loan for moving is usually not tied to a specific purpose and can therefore be used flexibly. The application process today is mostly done entirely digitally and often takes only a few minutes. The bank checks your creditworthiness, for which a regular income and a positive credit report are crucial.
Follow these five steps for a successful application:
Assess your needs: Calculate all costs – deposit, agent fees, moving company, renovation, and possibly a ten percent buffer for unforeseen expenses.
Compare offers: Use online comparison portals to check the interest rates and conditions of various banks. Pay attention to the effective annual interest rate.
Prepare documents: Have your ID card, the last three payslips, and your bank statements ready.
Submit the application: Fill out the online application. Thanks to digital identity verification (Video Ident) and digital signature, it often goes without paperwork.
Wait for the payout: After approval, the loan amount is often in your account within one to two working days.
A well-planned furniture loan can often be combined with the moving loan. This way, you finance everything from one source. A favourable renovation loan can also be part of the total sum.
Once the financing is in place, you can look forward to your new home with ease.
Request a personalised risk analysis now
Moving is more than just a change of location – it is an investment in your future. Financing deposits and brokerage fees should not be an obstacle. With the right planning, whether it be through a suitable loan or a smart alternative like rental deposit insurance, you can master this financial challenge confidently. Careful preparation not only protects your savings but also provides the security you need for a successful start.
Have your insurance situation reviewed for free and receive specific suggestions for optimisation.
More useful links
Gesetze im Internet provides Section 551 of the German Civil Code (BGB), which details the regulations on rental security (deposit).
Gesetze im Internet makes available Section 652 of the German Civil Code (BGB), which governs the brokerage commission claim.
Wikipedia offers a comprehensive article on the topic of rental security (deposit).
Deutsche Bundesbank publishes statistics on interest rates and yields of consumer loans (installment credits) for private households.
Statista provides a statistic on the average costs incurred when moving house.
Statistisches Bundesamt (Destatis) provides comprehensive information and statistics on housing.
Deutscher Mieterbund offers information and support for tenants in Germany.
FAQ
What are the requirements for a loan for the deposit?
The key requirements are being of legal age, having a residence 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 disbursed?
For online loans, the payout often occurs very quickly after a successful digital application review. Typically, you can expect the funds to be deposited into your account within one to three business days.
Can I deduct moving expenses from my taxes?
Yes, if you move due to work, you can deduct many expenses as job-related expenses, including brokerage fees for rental properties. If you move privately, you can claim costs for craftsmen or the moving 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 terminate the rental deposit insurance. For this, you need a release declaration from the landlord confirming that no claims are outstanding. The annual contributions paid will not be refunded.
Who pays the estate agent when renting an apartment?
In Germany, the principal of acquisition applies. This means that the person who commissions the estate agent must also pay them. In most cases, this is the landlord. Only if you explicitly commission an estate agent to find a flat, will you need to pay the commission.
What is the difference between a bail bond loan and a regular installment loan?
A deposit loan is essentially a standard installment loan advertised for a specific purpose. There are no technical differences; it is a loan with free use that you can use for the deposit, brokerage fees, furniture, or other moving-related expenses.
