How to apply for a mortgage in Berlin ?
You are interested in applying for a mortgage in Berlin for the purchase of a property either for self-use or as an investment?
Our real estate agency offers you the financial possibility to complete your new home purchase in Berlin with a local mortgage loan at an attractive rate. We advise you on the best loans options available from German banks and local mortgages brokers.
Our services include the search of best home loans and rates as well as the management of your mortgage credit application from A to Z.
Property mortgage in Berlin for a German resident
If you live and work in Germany, you could benefit from optimal mortgage rates and lending conditions because a german bank always favor loans for borrowers with local stable income and financial situation in Germany.
In this case, the amount of mortgage lending you could get could match up to 100% of the value of the property. The size of the mortgage will depends on the quality of the mortgage application like the personal situation, the working type (salaried or self-employed), the level of your job regular income, the stay and work period in Germany. On the property side, the purchase price, the rental income (for an investment property) and the capital / equity you need, will be the most regarded criteria.
The structure of a housing mortgage in Germany is generally as follows:
- 5, 10, 15 or 20 year mortgage duration .
- Fixed rate or variable mortgage rate (Euribor rate plus).
- Loan capital repayment of 2% per year minimum. If you intend to pay-off the loan earlier to the bank, an early loan payment option (5-10% per year) could be granted by the bank with no additional fees.
Home mortgage rates are at historically low rates levels in Germany so its a great opportunity to take benefit from current german mortgage market conditions and to to apply for a good value for money mortgage!
Currently, german mortgage rates for home loans range from 1.3 percent to 2.5 percent depending on the property, the mortgage credit application and the financial situation of the buyer. The state offers also enhanced conditions for first time home buyer of a property in Germany with an enhanced rate of 1% on 50.000€ mortgage loan amount.
The German home mortgage application process is quite straightforward as it takes us around 3 weeks to finalize your application for a residential mortgage. The required documents to provide are the proofs of income (i.e 3 last payslips). For your application, German banks would also require a credit reporting agency document (SCHUFA).
Property mortgage in Berlin for a non-resident
Unlike many European union countries (i.e France, Netherlands, Austria...), in Germany foreign and non-resident buyer has full access to the home mortgage market and could benefit from attractive loans, rates and lending terms.
The standard structure of a non-resident loan mortgage for buying a german property is generally the following:
• 10 years fixed rate or variable rate.
• Interest rate from 1.8% to 2.85% depending on the property and the borrower application.
• Repayment of capital by 2% per year minimum. If you intend to pay-off the mortgage earlier to the bank, an early capital payment option (5-10% per year) could be granted by the lender or the bank with no additional fees.
The mortgage loan amount for non-resident varies from 35% to 70% of the value of the property (loan-to-value or LTV). It depends on the property and the mortgage applicant profile.
The credit application process takes approximately 3-4 weeks during which we offer you a full asssistance on filling the application form and following-up the mortage process. For the application, you'll need to provide essentially the proof of income (i.e 3 last payslips).
Our real estate agency works with a network of German banks, lenders and mortgage brokers, by means of which we are able to select for our clients the best value for money deals and rates available on the market.
We also arrange for our clients a bank account opening in a local German bank (Deutsche Bank, Commerzbank...) in order to facilitate the collection of monthly rentals and to simplify the mortgage payment.
Buy-to-let mortgage for a property in Berlin
Buy-to-let mortgages in Berlin are property loans specifically designed for buying an investment property in the city.
A buy-to-let mortgage gives you the opportunity to leverage at a low rate your property investment and to increase your long-term profitability. Indeed, the profitability of a well-targeted property investment would have a return of more than 10% where the mortgage rates are currently around 2% to 3%. As an investor, with mortgages, you could invest in 2 or 3 properties instead of one also with same amount of money.
With a buy-to-let mortgage repayment, you could potentially cover the monthly fixed settlments with the rental income that your receive from your german property. Your repayment rate will be based on the amount of money you expect to get from rent each month.
Whether you’re an experienced in innvestment business or an aspiring landlord, our mortgage advisors in Berlin can help you making a success of your new home purchase in the city.
Ask us for a Berlin property mortgage loan!
You want to know more about the financial possibilities for your property purchase in Berlin ?
We provide you with comprehensive information about:
- Current market rates and loans conditions on the german market.
- Your credit and borrowing capacity for a property mortgage in Berlin.
- The amount of money you could borrow and the credit conditions (fixed, year, equity / own money need, process time...)
- Type of properties for which German banks offer mortgage financing at good credit conditions.
For any questions about our service and process, or if you want to book an appointment with an advisor, please write us on firstname.lastname@example.org with your suitable date and time for a callback, or simply fill in the mortage information request form.
Our team will get in touch with you with comprehensive information about best loans options for your new property purchase in Berlin!