Case report · Japan · fixed-term contract

“A fixed-term employment contract is fundamentally difficult for us.”

The Japanese engineer heard this statement at the very first appointment.

Information

Note: this describes an anonymised real-world case. Personal data and individual financing details have been changed to protect those involved. The sequence reflects a typical advisory situation.

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.

The right house was found quickly

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.

FAQ

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.

Conclusion

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.

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Anonymised individual case, not a guaranteeable statement for other projects · advice free · commission paid by the bank · §34i GewO · not legal or tax advice · no financing commitment; conditions depend on creditworthiness, lending value and bank