A mortgage with foreign-currency income
Income in CHF, USD, GBP, SGD or another foreign currency — and still a German mortgage. How banks calculate, which discounts are typical and which banks are active.
What foreign-currency income means for the bank
If you want to take out a mortgage in Germany but your income flows in a currency other than the euro — typically CHF (Switzerland), USD (USA), GBP (UK), SGD (Singapore), AUD, JPY — special rules apply.
Banks have to assess the foreign-exchange risk: what happens if the exchange rate moves against you? Can you still pay the instalment? That is why most banks apply a safety discount to the income converted into euros — typically 20–25 %.
Which currencies have which choice of banks
- CHF (Swiss francs): an established large group, around 15–25 % of all banks active. Safer than most third currencies because of the close DE–CH economic area.
- USD (US dollars): a smaller pool of banks, 5–10 % of all banks. FATCA matters where there is US tax liability.
- GBP (British pounds): better post-Brexit than in 2019, around 8–15 % of all banks. The conversion right no longer applies.
- SGD / HKD (Singapore, Hong Kong): few banks, around 3–5 %. Corporate employment preferred.
- AUD / CAD: similar to USD, a 5–8 % pool of banks.
- JPY (Japanese yen): very small, around 2–3 banks.
- CNY (Chinese yuan): very difficult — capital controls make proof of equity harder.
- EU currencies other than the euro (PLN, SEK, DKK, HUF): here the §503 BGB conversion right applies — the pool of banks is small because of the resulting compliance burden.
What is typical with a foreign currency
- Income discount: 20–25 % on the euro-converted value — the bank calculates more conservatively
- Equity: typically 30–40 % + incidental costs, instead of 15–20 %
- Loan-to-value: usually max. 70 %, some banks up to 80 % with very strong credit
- Rate premium: some banks add +0.1–0.3 %, others none
- Notary & written form: English-German accompanying texts possible, a German notary is mandatory
- Proof of equity: bank statements from the past 12 months from the foreign bank are accepted
What I actually do
- Pre-enquiry: I check in advance which banks are active for your currency & situation
- Bank shortlist: 2–4 banks that realistically fit
- Document package: English-German preparation, all tax assessments and employer confirmations
- Application coordination: I communicate with the bank and review the contract
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