“I work at a bank myself — and my loan application was still rejected.”
When the couple came to the first meeting, the disappointment was clearly audible.
Information
Both had lived in Luxembourg for many years.
He worked as a corporate client adviser at an international bank.
She was an auditor at a renowned consulting firm.
Together they earned an annual income well above 200,000 euros.
The best possible starting point, in fact.
Even so, their own bank had surprisingly rejected the application.
The wish for a house in Germany
The family wanted to move closer to the grandparents.
The plan was to buy a detached house in the Trier area.
The commute to Luxembourg remained easily possible in future too.
The key figures:
- Purchase price: 735,000 euros
- Equity: 240,000 euros
- Financing required: 555,000 euros
The property had already been found.
The notary appointment was imminent.
Then came the rejection.
The bank's reasoning
The rejection letter contained only a brief note.
The financing did not fit the internal lending guidelines.
Only on enquiry did it become clearer what the real issue was.
The income was earned entirely in Luxembourg.
Part of the pay consisted of variable bonus payments.
In addition, the couple held stakes in investment funds and employee participation programmes.
The case handler therefore decided against financing.
Not because the risk was too high.
But because the case lay outside the standard process.
Time pressure before the notary appointment
The timing was particularly problematic.
Only just under three weeks lay between the rejection and the notary appointment.
The seller made it clear that he would otherwise offer the property on the market again.
A great deal was at stake for the couple.
Not only the dream property.
Also reservation fees and surveyor's costs already paid.
The analysis
All the documents were reviewed the same day.
It quickly became clear:
The household budget was excellent.
The equity above average.
Both employments had existed for many years.
The variable income components were paid regularly.
The house was convincing too.
It was in a sought-after residential location with stable value development.
The decisive difference
Instead of merely submitting payslips, the entire income model was explained.
The bank received a comprehensible presentation:
- base salary
- bonus development over recent years
- asset overview
- equity
- investment assets
- household budget
This made clear that the variable income was by no means unusual.
It had been part of the regular income for years.
The financing
A binding financing commitment was in place after just a few days.
The notary appointment could take place as planned.
Today the family lives in their own house in Germany and continues to commute daily to Luxembourg.
What cross-border commuters can learn from this
Income from Luxembourg in particular is assessed very differently by banks.
While some institutions only consider bonus payments to a limited extent, others look at long-term income development.
A rejection therefore does not mean that the financing is impossible.
Often the wrong bank was simply chosen.
Frequently asked questions
Can employees with income from Luxembourg finance property in Germany?
Are bonus payments taken into account?
Can cross-border commuters finance detached houses?
Do I have to live in Germany?
How important is the household budget?
Conclusion
This case shows that even excellent income does not guarantee financing.
It is not only the economic situation that is decisive.
Equally important is how a bank assesses international income structures.
Anyone who is a cross-border commuter or works in Luxembourg should place their financing from the outset with lenders that regularly work with such constellations.
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