Advices

ADVICE #106

How to receive mortgage in Germany?

In Germany there are several kinds of loans to buy real estate: mortgage (differing in detail from classic), building fund and endowment insurance concurrently with the payment of interest on the loan. The key difference between the German mortgages - the transfer of ownership of housing to the borrower only after full payment of the loan. This, however, does not prevent, if necessary, to sell the pledged credit accommodations under the obligation to repay the Bank the remaining amount. The other two options are more long time and constantly living in Germany people.

Foreigners can obtain the credit in some banks amounting to 50% of the cost of housing (in rare cases up to 60%, with the higher share of own funds, the greater the likelihood of obtaining credit. In addition, banks prefer to make loans under the apartments and houses that are planned to lease; if the foreigner expects himself to live in an apartment bought by the Bank can be much more rigorous in the evaluation of such credit.

Greatly increases the chance for a loan long-term cooperation with the Bank, such as the presence of a foreigner in the Bank current account with current operations, which demonstrate the availability of necessary funds for the payment of the loan. The client is a foreigner from the street with a strange income in another country has very little chance of getting a mortgage. The costs of obtaining and processing the loan, and the purchase of real estate (including commissions, taxes and fees) can be up to 10% of its value.

The documents submitted to the Bank depends on the specific rules of the Bank, but in General traditional: proof of identity of the borrower (passport, residence permit, if available), proof of sufficient income (account statements, salary slips, etc.), confirmation of availability of capital for the down payment and the documents on housing. The decision on issuance of credit is accepted in the period from two weeks to two months.

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