German mortgages: the mortgage advice route that fits in Germany, also for the self-employed or with residence or income abroad
Whether you call it a construction loan, building loan, home loan or property finance, it all means the same thing: a loan secured by a mortgage on a property. Here you’ll find all the topics and scenarios, from living abroad to financing for doctors and investors, right through to listed buildings, QNG and connection costs. Nobody can change the first two, but the third is our speciality: as mortgage brokers, we compare financing options across 650 banks to find the right solution.
Which bank will a mortgage adviser find that is right for your situation?
A mortgage adviser will find the bank whose lending criteria match your situation. There are three reasons for a refusal: creditworthiness, equity or lending criteria. Nobody can change the first two, but we can resolve the third. We compare over 650 banks and select the one that suits your situation. The advice is free of charge.
I live or earn my income abroad — is that possible?
Yes. Residing abroad or having income in a foreign currency is reason 3 — a matter of the lending guidelines, not creditworthiness. Perini acts as an independent broker in accordance with Section 34i of the German Trade Regulation Act (GewO) through Olga Nikushkina — comparing over 650 banks; we know the few institutions that provide financing for tax non-residents, Germans living abroad and cross-border commuters; Loan-to-value ratios typically range from 60–100 %, depending on the type of income and creditworthiness – your country of residence determines the range of banks available, not the loan-to-value ratio itself. Mortgage financing for tax non-residents.
Can a mortgage adviser find a bank if the client’s income or place of residence is abroad?
Yes — a mortgage adviser can secure a German mortgage even if the client has income from abroad, is resident abroad or the property is difficult to value; it simply involves selecting a different range of banks than in the standard case. Three questions determine the outcome of almost every case: Is there sufficient equity — and where does it come from, including from an unencumbered property?
Is the income recognised — in euros, foreign currency, from self-employment, or from abroad? And is the property bankable? The sticking point is rarely creditworthiness alone, but rather whether any institution will underwrite the specific case at all: tax non-residents, foreign currency, cross-border commuters, a portfolio with a backlog of refurbishments.
It is precisely this matching of cases to banks that is the actual brokerage service, and we discuss it with you personally. The §34i brokerage is provided from a single source; in Portugal, a locally authorised agent handles the process.
- Comparison of over 650 banks
- licence under Section 34i of the German Trade Regulation Act (GewO)
- €0 for your consultation
- 100 % financing possible with suitable creditworthiness
- ancillary costs covered by your own funds
Mortgage brokers and advisers: what does our advisory service offer when comparing financing options?
As mortgage brokers, we compare over 650 banks and identify those whose lending criteria match your situation; the initial consultation is free of charge.
When are we honest enough to say no?
We’re also honest enough to say no: not every financing option makes sense — and in those cases, we don’t recommend it. Sometimes the best advice is to build up a bit more equity, choose a different property, or simply wait a few months.
We thrive on long-term trust, not on quick deals. If a financing option isn’t right for you, we’ll tell you straight — even if we don’t stand to gain anything from it.
Is your project fundamentally viable?
We’ll find the right bank for your situation. We don’t try to arrange financing that isn’t economically viable. And if your project isn’t viable, we’ll tell you just as frankly as we would if financing were possible.
It is not the question ‘How much do you earn?’ that is the sole deciding factor. What matters is how much borrowing your income can sustain in the long term — after all your regular commitments have been deducted. A household with a net income of €6,000 and €500 in regular repayments has a completely different level of financial flexibility than one with a net income of €3,000 and the same repayments. That’s why we do the maths first and only then look for a bank.
Excellent starting position: Stable income · sufficient financial leeway after all commitments have been met · good credit rating · equity available or able to be put to good use · a specific property in mind or a realistic budget.
Of particular interest in certain circumstances: residence or income abroad · foreign currency · self-employment or balance sheets rather than payslips · variable remuneration · income from medical practice · a property that not every bank will accept · rejection by your own bank on one of these grounds.
Cannot be resolved in the following cases:
- persistently low income
- already high monthly debt
- no financial leeway after budgeting
- a purchase price that bears no realistic relation to income
- lack of funds for ancillary purchase costs (8–15 % depending on the federal state)
- poor credit rating
A situation that does not fit every mortgage policy is not necessarily a reason for rejection. Take two minutes to check in advance whether your project is on the right scale: Financing traffic lights · Budget calculation · When a mortgage won’t work
Who arranges a mortgage independently of a bank?
A mortgage broker or property loan broker licensed under Section 34i of the German Trade Regulation Act (GewO). The difference compared to a bank adviser is that they compare offers from several institutions, rather than promoting just one. The advice is free of charge for you — the broker is paid by the bank that is awarded the loan.
Who provides financing for a new-build property or a property purchased from a developer in Germany, and what should you bear in mind regarding developer instalments?
We arrange financing for new-build properties and properties purchased from developers – just as we do for any other type of construction finance – via our bank comparison service; however, the loan is not paid out in a single lump sum, but in instalments as construction progresses.
Payments to the property developer are made in accordance with a statutory instalment schedule set out in the Estate Agents and Property Developers Regulation (MaBV): the first instalment is payable only once construction has begun and a legally binding contract is in place; further instalments are due upon completion of the structural work, roofing and carpentry work, and so on — this protects you from having to pay the entire sum before completion.
It is important to compare the MaBV payment schedule with your own financing plan before signing the contract, because the bank also only pays out against confirmation of the construction stage — if the two plans differ, a gap arises that has to be bridged. Explained in detail: Developer financing in detail.
Select your topic
Mortgages: If your situation does not fit every lending guideline, this does not necessarily rule you out: the key factor is which bank includes your specific circumstances in its lending guidelines. However, we cannot arrange financing that is not financially viable. Here are some examples to illustrate this.
A comparison of over 650 banks: One enquiry with us saves you having to visit lots of individual banks — we’ll choose the bank that’s right for your situation.
Foreign-currency income
Salary in CHF, USD or GBP? The banks that take foreign currency income into account for a German mortgage.
Which bank accepts foreign-currency income?
It is not the level of the salary that matters, but the lending policy of the individual institution — and how the safety discount is applied.
Funding for cross-border workers
Resident in Germany, working in Switzerland, Austria, Luxembourg, the Netherlands or France — income is often in a foreign currency.
Follow-up financing for tax non-residents
Existing mortgage in Germany, resident abroad — refinancing with a different bank.
Investments for tax non-residents
Residing abroad, buying in Germany — loan-to-value ratio typically 60–100 %.
There are three reasons for a ‘no’: creditworthiness, equity, and lending policy
Nobody changes the first two. The third is our speciality. Residence abroad, foreign currency, balance sheets instead of payslips, listed buildings or QNG: other firms have a section for these. Here are the relevant cases, with their reasons and solutions.
When a mortgage is not an option
The other kind of ‘no’: the real limitations that even 650+ banks cannot overcome — budget calculations, eligibility for banking services, equity capital. Stated openly.
Self-employed people & freelancers
Is your income variable, or do you not have payslips? Find a bank that will assess your business income statement and tax assessment notices (Steuerbescheid) fairly — from over 650 banks.
Mortgages for pensioners
There is no statutory age limit — banks assess the repayment period and net pension on a case-by-case basis.
Civil servant loans (Beamtendarlehen)
A job that cannot be terminated and a salary that is exempt from attachment — some banks reward this with better terms.
100 % purchase price financing as a lever
For investors, doctors and those with excellent credit ratings: put your equity to work rather than tying it up. Additional costs are covered by your own funds; your net household income covers the instalment.
Taking out a mortgage on a property in Spain
Capital from a fully paid-off property in Spain, without having to sell it. Usually up to 50 % of the tasación — and very few banks offer this to non-residents.
Raising capital without a specific purpose
Capital from your own property — without being tied to a property purchase. Up to 80 % of the mortgage lending value, from around €150,000. Few banks offer this; we know which ones.
Funds for purchases in other European countries
Take out a loan in one country, buy in another: unencumbered property, usually up to 50 % of the bank’s valuation, loans from around €1.5 million. Available in several European countries.
Lombard loan
Loan secured against a securities portfolio rather than against a property: interest rate based on Euribor plus a mark-up; brokerage fee from €1.5 million.
Take over the property on your own
Paying out your partner’s share and taking on the remaining debt — all as part of a single financing arrangement. What the bank requires in return and how the process interacts with the Land Registry.
Existing property
Older properties, year of construction, energy efficiency rating — how these factors affect mortgage eligibility and interest rates.
Listed buildings
§7i depreciation, the KfW combination and the banking structure that clearly separates purchase and refurbishment.
Energy efficiency class G/H
Financing despite a poor energy rating — which banks will still accept the property.
New QNG building
KfW 297/298 up to €150,000 plus an annuity loan — the order in which applications are submitted is decisive.
Purchasing from a property developer & developer instalments (MaBV)
Payments for new-build properties and property development purchases are not made all at once, but in instalments as construction progresses; the developer’s instalments follow the statutory MaBV payment schedule. Important: ensure that the MaBV payment schedule is reconciled with the financing plan in advance, otherwise a gap will arise that will require interim financing.
Which properties can be financed?
From flats to listed buildings to holiday homes — how banks value different types of property.
Check whether a property is bankable
Before you buy: What banks want to see in a property — a handy checklist.
How to read a property brochure properly
What a property brochure reveals about affordability — seven points and the red flags.
The purchase price is not the bank value
Why the bank values your property at less than what you’re paying — Property Value and CRR III explained.
Follow-up financing & refinancing
Is your fixed-rate period coming to an end? We compare follow-up rates across more than 650 banks — including forward loans up to 66 months in advance.
Mortgage
What the mortgage secures, what the declaration of purpose stipulates, and when it is worth having it struck off.
Household budget
How the bank reconciles income and expenditure — and why it uses flat-rate figures.
Comprehensive advice
More than just an interest rate: how capital repayment, financial assistance, unscheduled repayments and the fixed-rate period all work together.
Funding & renovation
An overview of BAFA, KfW and tax incentives — and how grants, the ‘Ergänzungskredit’ scheme and own funds come together to form a viable financing package.
Subsidies for new builds and first-time buyers
KfW 297/298 and home ownership for families — subsidised loans with reduced interest rates, combined with bank loans and equity.
Mortgages in Munich
Large loan amounts, inconsistent assessments of location and property type — it’s particularly worth comparing offers.
Mortgages in Cologne
Valuations vary considerably from one neighbourhood to another — not every bank views the same property in the same way.
Mortgages in Frankfurt
A high concentration of banks does not automatically mean the best local terms and conditions — a comparison highlights the differences.
An overview of all cities
Munich, Cologne and Frankfurt at a glance — an overview of all our city guides.
Calculators and typical situations
Mortgage Calculator
Purchase costs, budget, rental yield, mortgage repayments and more — free of charge.
Avoiding Common Mistakes
The seven common pitfalls when taking out a mortgage.
Financing modernisation
Plan your costs, make use of KfW/BEG funding, and arrange suitable financing.
Real-life case studies — by topic
Anonymised real-life cases — all with a secure household income and ancillary purchase costs covered by their own funds. The difference lies in the structure: place of residence, type of income, property.
Residence or income abroad
Dubai, Switzerland, the USA, Singapore, Luxembourg — 23 cases in which it was not creditworthiness but place of residence or currency that led to the rejection.
Buying & Modernising
Purchase and refurbishment – cleverly combined in a single financing package.
New Builds & Prefabricated Houses
Building, prefabricated houses and financial support — all properly funded.
Energy & Technology
Heat pumps and solar panels were factored in right from the start.
Doctors and Investors
Head of department, practice takeover, investment portfolio, listed building — cases where the income is sufficient but the combination of factors overwhelms the bank. Plus cases involving investors.
Frequently asked questions
Mortgages for the self-employed: Which banks will lend to those who can show a balance sheet rather than a payslip?
Which bank this is depends on the individual bank’s lending policy, not solely on creditworthiness. Some banks have a separate category for balance sheets rather than payslips. Matching each case to the right bank is part of our brokerage service, and we discuss it with you personally.
Mortgage advice: How much will the advice cost me?
There is no charge to you. Advice and brokerage services are free of charge; we are usually remunerated by the financing bank. Brokerage in accordance with Section 34i of the German Trade Regulation Act (GewO).
Do you also provide financing to people living abroad?
Yes. For tax non-residents and Germans living abroad, different banks are available and the loan-to-value ratio ranges from 60–100 %, depending on the type of income and credit rating — the country of residence determines which banks are available, but not the range of the loan-to-value ratio.
How does a mortgage on a house work?
The bank grants you a loan and, in return, has a mortgage registered against the property in the land register. In Germany today, this is almost always a land charge, rather than a traditional mortgage. You make monthly repayments comprising interest and capital; if you fail to make these payments on a long-term basis, the bank can enforce the mortgage by selling the property.
What is the difference between a land charge and a mortgage?
A mortgage is linked to a specific debt and decreases in value as that debt is repaid. A land charge, on the other hand, is independent of this and remains in full, even once the loan has been repaid. This is precisely why banks work almost exclusively with land charges — they can be reused for future financing.
How much does a mortgage with a 10-year fixed-rate period cost?
The current interest rates for 10-year fixed-rate mortgages, categorised by loan-to-value ratio, are listed on the Current Construction Loan Interest Rates page, along with a representative example. The applicable rate depends on the loan-to-value ratio, as well as credit rating and the property in question. The lower the loan-to-value ratio, the more favourable the interest rate tier.
What is the current interest rate on a mortgage?
The current range of interest rates based on the loan-to-value ratio can be found on the Current Construction Interest Rates page. In individual cases, the fixed-rate period, repayment terms, property type and credit rating also play a role — and rates can vary considerably between banks on the same day. That is why we compare them.
Can I get a mortgage whilst I’m on probation?
Yes, provided two conditions are met: the net household income can sustain the repayments in the long term, and the bank has a policy that takes the probationary period into account. The probationary period is not a creditworthiness issue, but rather a factor that individual banks assess differently. It helps if you have a permanent contract, are changing jobs within the same sector, and can cover ancillary costs from your own funds. If you wait until the probationary period is over, you often lose out on the property — so it’s worth finding out in advance which banks are willing to approve the application.
Let’s talk about your financing
Get in touch with us via WhatsApp or book a 30-minute consultation. The initial assessment is free of charge.
We compare over 650 banks and select the one that best suits your situation. The advice is free of charge; we are usually paid by the lending bank. Brokerage of consumer loans (Verbraucherdarlehen) in accordance with Section 34i of the German Trade Regulation Act (GewO) by Olga Nikushkina. What a mortgage broker does, how much they charge and when it is not worth it can be found on a separate page No legal or tax advice is provided.
Related pages
Financing traffic light
Use the ‘financing traffic light’ to assess, in five questions, whether your mortgage is a realistic prospect — before you make your first enquiry to a bank.
Household budget
Budget calculation for a loan: what income and expenditure the bank takes into account, why flat-rate figures are used, and where to find the template.
When a mortgage won’t work
Mortgage financing and household budget: the genuine grounds for rejection — monthly repayments exceeding income, property not eligible for a mortgage, mortgage lending value, loan term, credit rating.
650+ banks
A loan application for the property can fail on creditworthiness, equity or lending policy — only the third factor can be addressed by choosing the right bank. Case studies.
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.
