Non-resident mortgage: fixed-term contract, permanent group, €620,000 near Stuttgart
“A fixed-term employment contract is fundamentally difficult for us.” The Japanese engineer heard this statement at the very first appointment. This is a non-resident mortgage case — financed from Germany, not against it.
Why did the first bank reject the fixed-term contract near Stuttgart, and how was it solved?
The German employment contract was limited to five years, and the first bank focused almost exclusively on this fixed term. We explained that only the assignment to Germany was fixed-term, while permanent employment with the Japanese parent group continued. The bank received the group contract, assignment agreement, income statements, employer confirmation and proof of equity, and gave its commitment.
The right house was found quickly
Yet he had just received the news he had worked towards for years.
His employer — a world-leading automotive supplier — was transferring him to Germany as head of development.
Together with his wife and their two children he was to move to Baden-Württemberg for an initial five years.
The family did not want to live in rented accommodation.
They wanted to arrive.
And buy a home.
After several viewings the family decided on a detached house in the Stuttgart area.
The location was ideal.
The international school was only a few minutes away.
The new workplace was quickly reachable too.
The key figures:
Purchase price: 845,000 euros; Equity: 285,000 euros; Financing required: 620,000 euros.
For the family the decision was made.
For the bank, not yet.
Why the fixed term suddenly mattered more than the income
The engineer had been with the same company for seventeen years.
His career had progressed steadily.
The transfer to Germany was part of a long-term international development programme.
Even so, the first bank focused almost exclusively on one point.
The German employment contract was limited to five years.
Hardly any further documents were reviewed.
The financing was rejected.
What the bank had not seen
The actual employment contract did not end after five years.
Only the assignment to Germany did.
The permanent employment with the Japanese parent group continued independently of it.
In addition, the employer covered:
relocation costs; international health insurance; school fees for the children; housing cost subsidies.
This information had not been available to the bank at all at first.
The analysis: Before a renewed financing enquiry, the entire professional situation was worked through.
It became clear:
The engineer had worked for the same group for almost two decades.
The income development was stable.
The equity was fully available.
The family also had considerable reserves.
The monthly household budget left sufficient room too.
The fixed term itself represented no economic risk.
The solution
Instead of submitting only the German assignment contract, all the contractual documents were fully explained.
The bank received:
the parent group's employment contract; the assignment agreement; income statements; employer confirmation; an asset overview; proof of equity.
Only then could the overall economic situation be fully assessed.
The financing: After the review was completed, the financing commitment followed.
Only three weeks later the family signed the purchase contract.
Today the children live in Germany permanently.
The engineer still works for the same group — his assignment has since even been extended.
What international specialists can learn from this
Fixed-term assignments are often assessed as a risk too hastily.
Yet classic fixed-term contracts differ considerably from international group assignments.
Anyone who fully explains their professional situation often improves their financing prospects considerably.
Fixed-term contracts are not all assessed in the same way: This case shows that not every fixed term is to be assessed the same way.
International assignments follow different rules from classic fixed-term contracts.
Anyone who documents their professional situation comprehensibly and works with a financing partner that knows international employment models can successfully acquire a home in Germany even during a fixed-term assignment.
Frequently asked questions
Can assigned employees finance home ownership in Germany?
Yes. Many banks handle such financings.
Is a fixed-term assignment contract automatically an exclusion criterion?
No. What is decisive is the entire contractual employment situation.
Are international employment contracts taken into account?
Yes. The requirement is comprehensible documentation.
Can a home be bought during an assignment too?
Yes. International specialists in particular often deliberately decide against renting permanently.
Which documents are particularly important?
Besides income statements, the employment contract, assignment agreement and employer confirmations often play a central role.
A similar situation? Let’s talk.
Every case with an overseas link is its own. In a free initial call we will tell you honestly what is feasible and which bank fits.
Anonymised individual case, not a guaranteeable statement for other projects · advice free · commission, as a rule, paid by the bank · §34i GewO · not legal or tax advice · no financing commitment; conditions depend on creditworthiness, lending value and bank
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Editorially responsible: Olga Nikushkina — owner, §34i GewO (German mortgage brokerage), adviser register D-W-132-ZUCB-95. Specialised in German property financing with an international dimension: non-residents, foreign-currency income, cross-border workers, expats. Siegfried Perini is entered in the German intermediary register under this licence as a person directly involved in brokerage and advice (§ 11a GewO), active in real estate since 1992. Not legal or tax advice.