Loan-to-value for non-residents: how much will a German bank lend?
The loan-to-value ratio decides everything else about a mortgage in Germany when you live abroad: how much the bank lends, and at what rate. For non-residents the ratio spreads more widely and depends more on income — how far it goes depends on the income and the institution. Where the income carries it, up to 100 % of the lending value is within reach — foreign-currency salaries included. With a residence abroad, incidental purchase costs come from own funds.
What loan-to-value do non-residents actually get on a German mortgage?
A loan-to-value of up to 100 % can be reached where the income is strong enough. The range runs from 60 to 100 % depending on income type and creditworthiness, and the basis is the bank's valuation. Plan equity of up to 40 % plus purchase costs of roughly 8 to 15 %, which are not financed.
Loan to value: the condition is the whole sentence
Up to 100 % of the lending value is achievable within a range of 60–100 %, depending on income type and creditworthiness. The basis is the bank's valuation, not the purchase price.
What sets the loan-to-value in your case? Up to 100 % of the lending value is achievable — the range is 60–100 %, depending on income type and creditworthiness (the country of residence decides which banks take the case, not the range); the bank's valuation, not the purchase price, is the basis.
The top of the range requires correspondingly strong income — foreign-currency income included; incidental purchase costs come from own funds where the borrower lives abroad. Equity up to 40 % depending on the case, plus incidental costs.
Many lenders cap non-residents internally at 50 or 60 % — that is one bank's number, not the market's. Foreign-currency income and the banks that accept it.
How much equity do I need?
The down payment plus the purchase costs (roughly 8–15%), because those are not financed.
Plan equity for both. Which German banks finance non-residents?.
What happens when the bank valuation is below the purchase price?
The bank lends against its valuation, not against what you pay, so where the valuation comes in lower, the loan shrinks and the difference has to be found in cash.
Up to 100 % of the lending value — the range is 60–100 %, depending on income type and creditworthiness — the country of residence decides which banks take the case, not the range. The bank lends against its valuation, not against what you pay.
Where the two align, the arithmetic is simple. Where the valuation comes in lower, the loan shrinks — and the difference has to be found in cash, on top of the purchase costs. The income currencies we place are listed on the non-resident page.
Purchase price — Valuation = price: €400,000; Valuation 10 % below price: €400,000. Bank valuation — Valuation = price: €400,000; Valuation 10 % below price: €360,000. Loan at 80 % (example) — Valuation = price: €320,000; Valuation 10 % below price: €288,000. Cash needed for the price — Valuation = price: €80,000; Valuation 10 % below price: €112,000. Purchase costs (transfer tax, notary, registry, agent) — Valuation = price: on top, and not financeable.
Why the 50 or 60 % figure is not exactly wrong
It describes what happens when you approach the wrong bank. Most lenders apply an internal cap for non-residents, and it often does sit at 50 or 60 %. Some will not lend to non-residents at all. If your German bank quotes you a high equity requirement, you have learned what that bank does — not what the market does.
Finding the lenders that do not treat non-residents as an exception is the work. Which ones those are belongs in the conversation, not on a website.
How purchase costs add to the equity you need
Alongside the loan-to-value calculation itself, a second cost block is often underestimated by non-residents: purchase costs.
Property transfer tax (3.5 % to 6.5 % depending on the federal state), notary and land registry fees, and any estate agent commission typically add up to 8–15 % of the purchase price — and that amount has to come from your own funds regardless of the loan-to-value ratio, because banks will not finance it.
On a €400,000 purchase at an illustrative 80 % loan-to-value (within the 60–100 % range), that means: on top of the €80,000 in equity from the lending calculation, a further €32,000 to €60,000 in purchase costs needs to be available separately.
Keeping these two blocks clearly apart from the earliest planning stage avoids the most common surprise in cross-border cases — an offer that looks workable on paper but ends up requiring more equity than originally budgeted.
Which of the two blocks ends up larger depends heavily on the federal state and on whether an estate agent is involved — both are worth checking before an offer is made, not after.
Model calculations without guarantee. Not binding offers. Terms vary depending on credit profile, property and bank. No tax or legal advice.
Frequently asked questions
What sets the loan-to-value in your case?
Up to 100 % of the lending value is achievable — the range is 60–100 %, depending on income type and creditworthiness (the country of residence decides which banks take the case, not the range); the bank's valuation, not the purchase price, is the basis.
The top of the range requires correspondingly strong income — foreign-currency income included; incidental purchase costs come from own funds where the borrower lives abroad. Equity up to 40 % depending on the case, plus incidental costs. Many lenders cap non-residents internally at 50 or 60 % — that is one bank's number, not the market's.
How much equity do I need?
The down payment plus the purchase costs (roughly 8–15%), because those are not financed. Plan equity for both.
Why does my German bank quote a loan-to-value of only 50 or 60 % for non-residents?
Most lenders apply an internal cap for non-residents, and it often does sit at 50 or 60 %. If your German bank quotes you a high equity requirement, you have learned what that bank does, not what the market does.
Any questions on this topic?
A first consultation is free and without obligation — the commission is, as a rule, paid by the bank. We tell you what this means for your own financing.
Related pages
Non-residents: the overview
Buy a house in Germany while living abroad: which banks lend to non-residents, how much equity is needed and what documents are required.
How long it takes
Mortgage process in Germany: usually 3 to 10 working days from a complete file to approval — and what slows it down for non-residents.
Foreign-currency income and the banks that accept it
Foreign currency mortgage in Germany: how banks apply a safety discount to CHF, USD or GBP salaries, which discounts are typical and who lends.
Buy to let mortgage in Germany: how much will banks lend to non-residents?
For non-resident buy-to-let, limited tax liability in Germany is the prerequisite. Involve tax advisers in both countries — we do not provide tax advice.
Mortgage rates Germany: what do expats and non-residents pay?
A German mortgage rate consists of a market reference — driven by capital-market conditions no bank controls — and the individual margin the lender adds.
Buy a house in Germany from Dubai: do German banks lend to UAE residents?
That has clearly improved banks’ willingness to lend. A residence permit in Germany is one factor among several the bank weighs, not a blocker on its own.
Mortgage affordability calculator: how much can you borrow in Germany?
From payment, interest rate and initial repayment rate it derives the maximum loan; combined with your equity, that gives the financeable total.
Mortgage amortization calculator: how much is left when your fixed rate ends?
Mortgage amortization calculator for a German loan: monthly instalment, remaining balance and term — including the effect of annual extra repayments.
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.