Non-residents · Loan-to-value

„As a non-resident you get 50 to 60 percent." — Not true.

That figure appears in almost every expat guide, and it stops people from even asking. In our own broking practice, up to 80 % of the purchase price is achievable — provided the bank's valuation matches the price.

The condition is the whole sentence

The bank lends against its valuation, not against what you pay. Where the two align, the arithmetic is simple. Where the valuation comes in lower, the loan shrinks — and the difference has to be found in cash, on top of the purchase costs.

Valuation = priceValuation 10 % below price
Purchase price€400,000€400,000
Bank valuation€400,000€360,000
Loan at 80 %€320,000€288,000
Cash needed for the price€80,000€112,000
Purchase costs (transfer tax, notary, registry, agent)on top, and generally not financeable

Simplified model calculation illustrating the mechanism. Not a statement about credit conditions; achievable loan-to-value depends on the property, the income, the country of residence and the lender.

Why the guidebook figure is not exactly wrong

It describes what happens when you approach the wrong bank. Most lenders apply an internal cap for non-residents, and it often does sit at 50 or 60 %. Some will not lend to non-residents at all. If your German bank quotes you a high equity requirement, you have learned what that bank does — not what the market does.

Finding the lenders that do not treat non-residents as an exception is the work. Which ones those are belongs in the conversation, not on a website.

Non-residents: the overview How long it takes Discuss your case