French pilot with variable pay: German mortgage for a €455,000 flat in Munich
“Unfortunately your base salary is not enough.” When the pilot heard this sentence, he had to smile. This is a non-resident mortgage case: the financing comes from a German bank.
How was a pilot's flight-hour pay counted in full for a €455,000 flat in Munich?
The first bank counted almost only the base salary, which was less than half of the pilot's actual annual income. We presented the income development of recent years to show that flight-hour pay, long-haul allowances and bonuses were a permanent part of the income. The financing bank assessed the stability of the entire income structure and gave its commitment.
Who was the buyer?
A pilot who had flown for a large European airline for more than fifteen years; his base salary was less than half of his actual annual income.
For more than fifteen years he had flown for a large European airline. His income consisted of a base salary, flight-hour pay, allowances for long-haul flights and various bonus payments.
For him this pay model was completely normal.
For the first bank, evidently not.
There, almost exclusively the base salary was taken into account.
The result: The financing was rejected.
The pilot lived with his family in the French Alsace.
Professionally he travelled across several European countries and planned to buy a high-quality flat in Munich.
The flat was to be let long-term and later possibly made available to his son during his studies.
The key figures:
- Purchase price: 612,000 euros
- Equity: 212,000 euros
- Financing required: 455,000 euros
The financing was planned conservatively.
The monthly rental income was to cover a considerable part of the loan instalment.
Why is variable income often assessed incorrectly?
Because many banks work with standardised income models: a fixed salary is easy to assess, while bonuses, commissions, shift allowances and flight-hour pay are treated very differently.
A fixed monthly salary is easy to assess.
Variable income components, by contrast, are treated very differently.
These include, for example:
- bonus payments
- commissions
- shift allowances
- flight-hour pay
- on-call duties
- profit sharing
Some banks count this income in full.
Others only in part.
Some not at all.
This is precisely what creates considerable differences in financeability.
What did the economic reality look like?
The variable pay had been earned regularly for many years, the average annual income was stable, and the pilot had high liquidity reserves.
The variable pay was by no means random.
It had been earned regularly for many years.
The average annual income was stable.
In addition, the pilot had:
- high liquidity reserves
- debt-free investments
- long-term employment
- excellent creditworthiness
The property was convincing too.
The location was sustainably lettable.
Demand consistently high.
How was the income presented?
Instead of submitting only the latest payslips, the income development of the past years was presented in a comprehensible way.
This made it clear that the variable components were not an exception.
They were a permanent part of the actual income.
It was exactly this classification that was decisive for the financing bank.
It was not just the basic salary that counted, but the whole structure: After a full review of the income development, approval was given.
The bank did not assess only the basic salary.
It looked at the long-term stability of the entire income structure.
The financing could be implemented as planned.
What other pilots can learn from this: Pilots often belong to the occupational groups with several income components.
This regularly leads to misunderstandings at banks.
Not every bank assesses variable income components in the same way.
Anyone who documents their income development transparently and selects financing partners in a targeted way improves their chances of financing considerably.
How was it financed?
After a full review of the income development: the bank looked at the long-term stability of the entire income structure, not at the base salary alone.
The financing could be implemented as planned.
This case shows that not every high income automatically leads to a financing commitment.
What is decisive, rather, is how banks assess variable pay components.
Anyone who presents the particulars of their income structure clearly and selects a financing partner with the relevant experience creates the best conditions for a successful property financing in Germany.
Frequently asked questions
Can pilots finance property in Germany?
Yes. Many banks handle such financings.
Are flight allowances taken into account?
Depending on the bank, variable income components can be counted in full or in part.
Does the income have to be earned exclusively in euros?
No. What is decisive is the comprehensible overall economic situation.
Is variable income fundamentally problematic?
No. It must, however, be documented in a comprehensible way.
Can investment properties be financed too?
Yes. Let properties in particular are often part of the long-term asset planning of internationally active professionals.
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.
