Apartment Deposit
Financing
Facing a 2,000-3,000 deposit requirement? You dont have to lock away your savings. Finance your Kaution or use deposit guarantee insurance instead.
Compare Personal Loan Options for Deposit
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Deposit Financing Options
Option 1: Personal Loan
Take a small personal loan to cover the deposit. Pay in installments over 12-24 months.
- Amount: 1,500 - 5,000 typical
- APR: 3-7%
- Term: 12-36 months
- Deposit return: You own it, get it back when you move
Option 2: Deposit Guarantee
Mietkautionsburgschaft: An insurance company guarantees your deposit. You pay a monthly fee instead.
- Cost: ~4-5% of deposit per year
- Example: ~5/month for 3,000 deposit
- Setup: Usually quick approval
- Landlord: Must accept (not guaranteed)
Landlord Acceptance
Deposit guarantee (Burgschaft) requires landlord agreement. Not all landlords accept it. If your landlord insists on cash deposit, a personal loan is your only financing option.
German Deposit Rules (Kaution)
Legal Maximum
By German law, the deposit (Mietkaution) cannot exceed 3 months cold rent(Kaltmiete, excluding utilities).
Example: 800 cold rent = Maximum 2,400 deposit
Payment Options
You can legally pay the deposit in 3 installments (one with each of the first 3 rent payments). However, most landlords prefer full upfront payment.
Deposit Return
The landlord must return your deposit after you move out, minus any justified deductions for damages or unpaid rent. Typically within 3-6 months.
Separate Account
Landlords must keep your deposit in a separate savings account (Mietkautionskonto) and return it with interest when you leave.
Deposit Loan FAQ
Can I get a loan specifically for the deposit?
Banks dont have special deposit loans. You take a regular personal loan (Ratenkredit) and use it for the deposit. The purpose is up to you.
Which is cheaper: loan or guarantee?
For short stays (1-2 years), deposit guarantee is often cheaper. For long stays, a loan (where you eventually own the deposit) usually makes more financial sense.
What if my landlord refuses the guarantee?
Landlords have the right to insist on cash deposit. In this case, your only option is to pay cash (either from savings or via a personal loan).