You want to invest in Germany and need finance or want to raise a loan?
Mortgages Application for resident foreign investors

As per 01.01.2012 you need a minimum of 60.000€ own funds to apply!
Which German banks offer mortgages to resident foreign investors?
Which building society is prepared to arrange a loan for buy-to-let properties?
Is it a good idea to join a rental pool only because they offer finance through their in-house bank?
How good are pre-arranged mortgages - do they really exist for the German market?

Question: I am non-resident and I want to buy a property with a mortgage. Is this possible ?
Answer: Yes, we can mortgages with banks which are prepared to offer up to 60% of property value - but if you are non-resident and if you want a nice property at a good price, then forget the mortgage.
Why? Well, because Berlin properties are cheap and mortgages are only needed if you pay more than you should.
I.e. If am selling a property which would fetch 90.000€ but I put the price at 120.000€ to give it a try, and someone comes along to pay 120.000€, then the seller is happy to wait until you have "pottered" with your mortgage.
But if he agrees to sell for 90.000€ then he wants the money quick and will not be waiting for your banks - which can take months!

So: if you want to purchase some of your discounted properties, you must have the cash.

Question: I have the funds to purchase without mortgage, would you still recommend to apply for a mortgage loan?
Answer: Definitely not. If you have funds you are able to act much quicker. Good properties move extremely quick - you willnot have time to arrange for a mortgage. Also, being able to apply for a mortgage does not imply that you will finally get approved. You might lose valuable time pottering with mortgage loans and risk losing the property.

Question: If I buy without a mortgage, my cashflow is not so good. I want a mortgage to improve my cashflow in order to buy several properties and achieve higher yields.
Answer: That´s no problem. You buy your first properties without a mortgage at the discounted price of 90.000€. Once you are registered owner and have your first rental income, you visit the banks and apply for a mortgage over your exisiting German properties to raise finance.


MORTGAGE LOAN ENQUIRY
ONLY FOR RESIDENT INVESTORS WHO LIVE IN GERMANY
YOU NEED MINIMUM 60.000€ OWN FUNDS TO APPLY !!!
Your Firstname & Lastname:
Your Email:
Your Country:
Your Enquiry:
YOU NEED MNINIMUM 50.000€ OWN FUNDS TO APPLY and you MUST be RESIDENT in Germany - we do not offer this service to non-residents.
  Important Privacy Notice:
German Real Estate financing can be done either with mortgage banks or with any usual bank or financing institute. Financing of up to 50% can be granted on selected properties. Financing for the purchase of groups of properties under 80,000 euros (for example, two flats for 35,000 each) is also possible. In order to obtain financing, all financial institutions require specific information about you and your financial background in order to determine whether you are considered low risk mortgagee.

When applying for a mortgage loan, please bear in mind:
Banks want minimum risk and maximum security. Chasing up a potential default on a single apartment from an overseas investor isn´t what bank are keen on. The judicial costs incurred in a foreclosure would be excessive for the banks, especially with low-priced properties. Banks do not want your property, they want your money and that you vigorously respect payments. No bank wants to chase a mortgage defaulter for a few thousand euros.
Getting finance as a non-resident investor in Germany has been difficult, but we have experienced more lax rules and a very positive response from banks lately.
If a German national bought a buy-to-let investment property in Spain, Austria, Italy or the United Kingdom, local banks would also adopt more conservative lending rules. And the same applies to non-resident investors in Germany. Saying this, several of your clients have been approved for mortgage loans by German banks.

Here is some expert advice which has helped some non-resident investor arrange for a mortgage loan:
1) buy good quality low-cost properties (under market value) with your own funds (no mortgage application)
2) if you can afford several, buy several, and pay cash with your own capital (again without mortgage loan)
3) build up a steady rental flow for a few months
4) then approach the bank to raise finance on all properties

We know of an investor who paid 1000€ per m², then months later approached the bank and got 1050€ per m² because the bank estimated that the property was worth 1500€ / m² and was prepared to grant a 70% loan.
Needless to say, your financial status and your rental income must satisfy the bank´s requirements.

PS: We do NOT give legal advice. We just put you in touch with banks who offer loans. We are not intermediaries or mortgage brokers.

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