Many international homebuyers are looking for assistance with loans and financing services. Settling the payment is one of the essential steps of buying a property and most clients decide to get a loan. Below you can find some common questions, every international homebuyer and investor asks us.
Can foreigners get a german mortgage?
Generally speaking, yes.
How much and to which terms depends on your desired property, your financing requirements and where you pay your taxes.
Is it better to get a mortgage from your ‘home country’ or from a bank in Germany?
Whilst it may be easier to get a mortgage in your home country, most banks will not finance a property that is located in another country and you will have to get financed through a German bank.
I want to get an idea about how much I can borrow – what information do I need?
- Required loan amount
- Any fees you are expecting to pay (Estate agent fees etc)
- Loan term
- Country of residence
What types of German Mortgages are there?
There are about as many different types of mortgage options as there are investors.
- Fixed Interest Annuity Loan
- Interest Only (Zinszahlungsdarlehen)
- Variable Rate Loan (Flexibles Darlehen)
- Building Society Loan (Bausparvertrag)
- Bank Home Ownership Programme – KfW (Kreditanstalt für Wiederaufbau)
What is a typical mortgage interest rate?
Germany currently offers very attractive loan terms. German mortgage rates are some of the lowest in the European Union with rates ranging between 1 – 4%.
The average lending rate reported by the Deutsche Bundesbank is 1.5%. The average rate for non-residents is between 2.4% and 3.9%.
How much finance can I expect?
German mortgage lenders will regularly finance up to 50% of the value of an apartment purchase and occasionally up to 70% on an investment apartment buildings to non-residents and up to 100% for residents.
Contact the finance solution provider
Get in touch with the finance solution provider if you are interested in their assistance or if you have any additional questions.
Berkshire Hathaway HomeServices does not endorse any of the products or vendors referenced on this material. Any mention of vendors, products or services is for informational purposes only.
