Mortgage application documents: what a German bank needs from buyers abroad

Worked example: budget for a non-resident mortgage at 60 % and 70 % loan-to-value

Worked examples with set assumptions, not an offer and not a commitment. Purchase price €400,000, lending value €380,000, property in North Rhine-Westphalia, calculated with the two steps of our rate band: 60 % and 70 % loan-to-value, 10 years fixed, 2.0 % repayment (Perini’s own bank survey, as at 5 October 2026).

More loan-to-value means less equity, but a higher rate on the whole loan. The side costs are not financed in either case — this difference is exactly why budgets burst.

What the foreign-currency haircut means: lenders recognise income in a foreign currency with a haircut of 10–25 %, and 50 % for a 100 % financing. Out of €6,000 gross, a 10–25 % haircut recognises €4,500 to €5,400 (€600 to €1,500 not recognised); a 50 % haircut recognises €3,000 (€3,000 not recognised). The lender budgets with the recognised figure, not the gross one.

Which 47 documents do you need, by residence and scenario?

The complete list follows by group, starting with identification and residence (5 documents) and tax status (4 documents). With a foreign nexus the pace is set by the document nobody thought of, such as the home-country credit report.

• Identification and residence (5 documents): ID card and passport, copies of all pages; Residence permit with expiry, for non-EU citizens; Current German registration certificate or proof of residence abroad; Germans abroad: German de-registration certificate plus proof of residence abroad; Employer letter if a visa extension is in prospect.
• Tax status (4 documents): Settled: limited (NRA) or unlimited tax liability? This single question decides half the document list; All tax documents — tax returns and tax assessments — from every country in which you are liable to tax; For limited liability: proof of country of residence, e.g. a residence certificate; Reference to the applicable double-taxation treaty, where relevant.
• Proof of income (7 documents): The last three payslips plus the prior-year December payslip; Employment contract, complete including bonus arrangements; Employer letter confirming employment not under notice; Salary-account statements for the last six months, without gaps; Tax assessments for the last two years — German and home-country; Self-employed: balance sheets, BWA and tax assessments over three years; For pension, parental or child benefit: the relevant award notice.
• Creditworthiness (2 documents): SCHUFA self-disclosure under Art. 15 GDPR, no more than one month old; Home-country credit report, e.g. Equifax in the USA or Experian in the UK.
• Equity (4 documents): Proof of equity via account or portfolio statements; Foreign holdings: translation and currency conversion; Gift declaration where the equity comes from family; KfW subsidy approval including repayment grant, if already issued.
• Income in a foreign currency (3 documents): The last twelve months of statements in the original currency; Current conversion table used for recognition; Hedging strategy, if the lender requires one.
• Residence in the USA or Canada (3 documents): W-2, 1099 and tax return for the last two years (USA); T4 and Notice of Assessment for the last two years (Canada); FATCA declaration for US persons.
• Residence in the United Kingdom (2 documents): P60 and P11D for the last two years; HMRC tax return and SA302.
• Residence in Switzerland or Liechtenstein (2 documents): Salary certificate for the last two years; Swiss tax return and withholding-tax certificate.
• Residence in the United Arab Emirates (2 documents): Employer salary certificate; Residence visa and Emirates ID.

For GmbH managing directors (3 documents):

• Shareholder list and commercial-register extract
• GmbH balance sheets for the last three years
• Director's service agreement

Once a property is selected (10 documents):

• Draft purchase contract — a draft is enough for the review
• Current land-register extract, no more than three months old
• Living-space calculation, energy certificate and current photos
• Floor plans and section with dimensions
• for houses also the enclosed-volume (cubature) calculation

• If let: the existing tenancy agreements
• Declaration of division, condominiums and multi-family houses only
• Building insurance policy for an existing property
• Building permit for new builds only, ground lease agreement for leasehold only
• New build or modernisation: construction contract and cost breakdown by trade
• Sales brochure or listing, if available

This list prepares a German mortgage with a foreign nexus. Whether a lender takes the case depends on the individual situation and varies widely between banks. Checklist as of 10 October 2026. For questions on double-taxation treaties, limited tax liability or visa law, consult a tax advisor or lawyer.

Why does the first bank reject — and how is it solved?

The most common reasons for rejection rarely lie with you, but in the bank's process. For each one there is a way through:

• Residence abroad (Reason): Uncertainty about the applicable law and extra effort. Solution: approach banks with established procedures for non-resident borrowers.
• Foreign-currency income (Reason): Francs, dollars, pounds trigger a blanket "no" at many banks. Solution: choose a bank with fair recognition of foreign currency.
• No SCHUFA history (Reason): Anyone who has lived abroad for a long time often has no history. Solution: prove creditworthiness via income, bank statements and assets; the bank accepts this.
• Temporary residence permit (Reason): A factor for some banks, not an exclusion. Solution: the right bank; established Blue-Card routes for skilled workers.
• Incomplete documents (Reason): Foreign documents, missing translations. Solution: submit everything complete from the outset and, where necessary, translated.
• Regulation & internal policies (Reason): Bank-internal country and process limits. Solution: deliberately select the bank whose policies fit the case.

Which personal requirements apply?

The property is in Germany, your income is provable and ideally stable, and your creditworthiness is clean.

✓ The property is located in Germany (secured by a land charge). ✓ Provable, ideally stable income — employed (preferably permanent) or self-employed with a proven earnings position. ✓ Clean creditworthiness; no burdensome open negative entries. ✓ Equity available — up to 40 % depending on the case, plus purchase costs (loan-to-value 60–100 %). ✓ With a temporary residence permit: keep prospects and income in view (not an exclusion). ✓ For couples it often helps if one person brings adequate German-language skills or German citizenship.

Personal documents: ✓ Valid passport or identity card (guide: still valid for at least 6 months). ✓ Proof of registration / proof of residence abroad. ✓ Residence permit / visa where applicable. ✓ For foreign documents: certified translations or explanations, if the bank requires them.

Which equity and property documents do you need?

Statements showing existing equity and the source of larger sums, plus the property description, photographs, floor plans and area calculation; for flats also the declaration of division.

✓ Bank statements / investment account statements showing existing equity. ✓ Proof of the source of larger sums (e.g. sale, gift).

Property documents:

✓ Property description, recent photographs. ✓ Floor plans and calculation of living/usable floor area. ✓ For flats: declaration of division (Teilungserklärung), minutes of the most recent owners’ meeting, budget plan. ✓ For existing properties: energy performance certificate (Energieausweis); for let properties: tenancy agreements / list of tenants. ✓ For new-build properties: draft building or sale contract, building specifications.

Country-specific information: ✓ Switzerland: Widest choice of banks for permanent employees; self-employed individuals with higher equity. Resident in Switzerland →; ✓ United Kingdom: Resident in the UK, income in any currency; restrictions apply to the self-employed. Resident in the UK →; ✓ USA/Canada & Asia: Non-EU — assessment more dependent on country and employer. Resident in the USA, Canada and Asia →; ✓ UAE/Dubai: Demonstrable income and equity are crucial. Residence in the UAE and Dubai →; ✓ EU (e.g. Austria, the Netherlands): Income in euros makes things easier, but residence abroad remains an issue for many banks. Residence in another EU country →.

What we do for non-residents: We select from over 650 institutions the few whose country-specific and procedural requirements cover your case, check and translate the self-disclosure form before submission, calculate the foreign currency conversion transparently, and assist with account opening, the notary appointment and the disbursement of funds. Advice and bank comparisons are free of charge; we are usually remunerated by the financing institution, and only if the financing goes ahead. We do not provide tax or legal advice.

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