Investment property loan in Germany: finance buying and holding
Whether a single income property or a growing portfolio: as an investor you need capital that grows with you — at acquisition, in the holding phase and at refinancing. We structure your finance bank-independently and extract terms a single bank rarely offers. Under §34c GewO. Commercial property finance in Germany runs on different criteria than residential lending — cash flow first.
How much will a bank lend on an investment property loan for an existing property?
For an existing property the loan covers around 64.2 percent of value on average, according to the BF quarterly barometer for the second quarter of 2026. The second question is whether the property services its own debt, which banks answer with the debt service coverage ratio. Each lender applies its own assumptions.
Investment property loan in Germany: How is it sized?
An investment property loan in Germany is sized on the property's rental income and value — not on the purchase price alone.
Which three situations do we finance?
The three situations are the purchase of individual properties, the bundled financing of several properties as a portfolio, and the release of capital from existing properties as a loan secured by a land charge.
- What matters in acquisition and portfolio financing? The focus is not on your credit rating but on the property and its income — the sustainably achievable rental income and the property value, not just the purchase price. Banks calculate with their own valuation approaches, which are often below the purchase price. Loan brokerage under Section 34c of the German Trade Regulation Act (GewO).
- Financing several properties together? Often yes, and often with advantages: portfolio financing can improve terms and simplify processing. Whether it makes sense depends on the properties, values and strategy.
- Releasing capital from your portfolio? A valuable portfolio that is as free of debt as possible can be turned into liquidity through refinancing as a loan secured by a land charge — without selling. This is a loan, not an equity investment; equity-like components (mezzanine) are arranged through licensed partners.
How much does a bank finance when buying property for investors? When buying property for investors, a bank finances on average 64.2 % of the value — this is the loan-to-value ratio for existing properties measured by an industry barometer of property lenders for the second quarter of 2026, across all types of use.
The second question is just as important: does the property cover its debt service itself? For this, banks calculate the debt service coverage ratio, i.e. the net rental income after operating costs divided by interest and repayment.
If it is below one, the surplus does not mathematically cover the debt service.
A buffer above this is market practice, but not a requirement; each bank applies its own assumptions for costs, vacancy and valuation.
Purchase of individual properties: Investment property, block of flats or commercial unit: we arrange the purchase financing to match the rental income, location and your overall situation.
Portfolio & growth: Finance several properties as a bundle instead of each one individually — this often improves terms and simplifies administration.
Capital from your portfolio: Topping up or refinancing a paid-off property frees up liquidity for the next purchase — as a loan secured against your existing properties.
Financing existing properties: what decides how much funding you get?
When it comes to financing existing properties and property purchases, the key factors are the sustainable rental income that can be generated and the value of the property — not just the purchase price.
Banks and lenders base their calculations on their own valuation methods, which are often lower than the purchase price. We know which lenders provide realistic valuations and where you can secure more funding for the same property.
How can your holding serve as a lever?
Via a refinancing, capital can be released from a sound, ideally debt-free holding as a loan against a land charge, without selling.
A sound, ideally debt-free holding is your strongest asset.
A loan is not a participation. We release capital from the holding as a loan against a land charge — that is loan brokerage under §34c GewO. An equity-like capital release via subordinated components (such as a mezzanine solution) is something different in regulatory terms and runs via licensed partners, not via us. More on that on the page Mezzanine & equity.
Commercial property finance: why does the range of banks change?
In the case of commercial financing, the focus of the assessment shifts to the property and its income, and this also changes the range of banks involved.
We know which lenders value properties realistically. Mixed-use developments—combining residential and commercial use—are a stumbling block for many main banks, but for specialist lenders they are part of their day-to-day business.
What matters in the valuation?
For portfolio and acquisition finance, what counts above all is the sustainably achievable rental yield and the property value — not the purchase price alone.
Banks and financiers calculate with their own valuation approaches, which are often below the purchase price. We know which houses value realistically and where you get more financing for the same property.
How do acquisition and holding finance fit together?
Acquisition finance is arranged to match the rental yield, location and your overall situation; in the holding phase a largely repaid property can be refinanced to release capital for the next purchase.
In the holding phase, a paid-off or largely repaid property can be refinanced as a loan against a land charge, which releases capital for the next purchase without selling. Financing several properties as one package often improves terms.
Frequently asked questions
Financing for business use: What changes compared with private property financing?
The assessment shifts from the applicant to the property: the focus is on its income and the question of whether it carries its own debt service. This also changes the circle of banks. We arrange the loans pursuant to § 34c GewO.
Financing a commercial property: What role does rental income play?
The sustainable rental income helps determine whether the property can cover its debt servicing costs. To assess this, banks calculate the debt service coverage ratio: net rental income after operating costs divided by interest and capital repayments. If this figure is less than one, the surplus does not, in accounting terms, cover the debt servicing costs. A buffer above this figure is standard market practice, but not a requirement.
Do you also finance mixed-use properties?
Yes. Residential-commercial mixes are a stumbling block for many house banks, but daily business for specialist financiers. We know the houses that value mixed use confidently.
Can I finance several properties together?
Often yes, and frequently with an advantage. A portfolio financing can improve terms and simplify handling. Whether it makes sense in the individual case depends on the properties, values and your strategy — we check that together.
I’m a non-resident or live abroad — is that possible?
That is one of our specialist disciplines. Residence abroad and foreign-currency income deter many banks; we know the ones that finance anyway. Details in the financing area for non-residents and expats.
What does the advice cost?
The first check is free for you; we are remunerated by the financing house. For very individual mandates we discuss any fee agreement transparently in advance.
Let’s talk about your portfolio
Message us on WhatsApp or book a 30-minute call. The first check of your plan is free.
Perini Finance & Property — licensed under §34c GewO for commercial property loans, 650+ banks & capital providers, we know the houses whose lending rules cover single income properties, bundled portfolios and refinancing from the holding — for investors including non-residents. Refinancing your German loan.
Related pages
Property development finance: what does a lender require from developers?
Property development finance in Germany: what lenders require on equity, pre-sales and structure — with examples, across 650+ banks and capital providers.
Commercial property finance: when should you prepare the follow-up loan?
Commercial property finance: prolongation, refinancing or top-up when the fixed-rate period ends — start 6 to 12 months ahead. Bank-independent, §34c.
Mezzanine finance for property projects: when does it pay off?
Mezzanine finance for property projects: subordinated capital as an equity substitute — cost, structure and when it pays off.
Bridge loan for property: how does bridging finance close the gap?
Bridge loan for property in Germany: bridging finance spans the gap until the sale completes or the long-term loan is in place.
Commercial mortgage in Germany: who finances purchase, holding and projects?
Commercial mortgage in Germany: acquisition, portfolio, development and bridge finance — brokered bank-independently across 650+ banks and capital providers.
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.
