German Mortgage

We are pleased to announce that we can offer up to 70% mortgages against German Residential property (maximum € 1 million). An additional scheme for a 75% mortgage (maximum € 700,000) is shortly to follow to be announced.  (*see notes below)

These loans are available for both the Employed & Self-Employed.

Typical Mortgage Scheme:

For all schemes there is a minimum loan of € 40,000, maximum € 1,000,000, available in Euros only.  The minimum term is 3 years and the maximum term of the loan is 30 years. Current interest rates as at 15th January 2008 are from approx 5.70% on a Variable Rate basis. 

The lending banks will require standard documents for the loan, and by depositing your rental income from the property into a bank account from the same institution that you obtain the mortgage loan makes for a hands-free approach to making your mortgage payments.

Obtaining financing for your Germany Property can be done either with a mortgage banks or indeed many other banks and financial institute.

If you are a non-resident of Germany and do not receive any income in Germany it is possible (under certain circumstances) to obtain up to 60% of the purchase price.

If obtaining a mortgage is essential for you to proceed with a property purchase in Germany, it is vital that you confirm that a bank is willing to grant you a mortgage before any contract of purchase is signed. If you find a property you really want to buy, you can sometimes sign a reservation agreement which will reserve the property for a specific period of time, normally sufficient for you to arrange the necessary financing. However, the only binding document for real estate investing in Germany is the purchase deed.

Documents Needed for Loan
In order to obtain financing for your Germany Property, all financial institutions require specific information about you and your financial background in order to determine answers to the following questions:

Who are You?

You will require:

Two proofs of identification certified at German Consulate or at a bank agency (passport, driving licence, etc.)

Two documents proving your home address (electricity bill, phone bill, etc.)

Completed loan application (sent by us)

Completed insurance form (sent by us)

What is Your Financial Situation?

The lending bank will require documentation illustrating your credit worthiness.

• These are likely to be:
• Letter of recommendation from your bank
• Income tax returns for last three years
• Last three months bank statements
• Verification of actual assets (i.e. real estate, stock, etc.)
• A list of outstanding loans which show:
  - Starting & final dates
  - Initial amount borrowed and outstanding balance
  - Annual repayment

Verification of Employment

If You Are Company Employed you will need:

• - Confirmation letter from your employer
• - Last three salary slips, bonus statement, etc.
• - If other source of income, proof of it

If You Are Self Employed:

• - Last three years accounts
• - Letter from your accountant, certifying your income
  - Any documents that certify that you own the business
  - Proof of any other source of income

If this is a Joint Purchase in Married Names **

Marriage Certificate

Notes

* Please note, that there are only full status mortgage facilities currently available for applicants, who are living and working in either UK or Ireland (and appear on that Country’s Electoral Roll) or a non-German National living and working in Germany.

** A completed set of documens must be sent by both husband and wife if you are purchasing together.

Life International will be pleased to help you find appropriate financing you’re your Germany Property.

Call or email for more information:  mortgages@life-international.co.uk