How to apply for a mortgage in Berlin ?
You are interested in getting a mortgage in Berlin in order to buy a property either for self-use or investment?
Our real estate agency offers you the possibility to finance your property purchase in Berlin with a local mortgage loan.
We take care of the processing of your credit application from A to Z and we advise you on the best financing options available from German banks and local mortgage brokers.
Mortgage in Berlin for permanent resident
If you live in Germany, you could benefit from optimal mortgage lending conditions because German banks always favor borrowers with local stable income and financial situation in Germany.
In this case, the amount of mortgage lending you could get could be up to 100% of the value of the property. The size of the mortgage loan will depends on the quality of the mortgage application and takes into account the nature of your professional activity (salaried or self-employed), the level of your regular income, the length of your stay in Germany and the rental icome for an investment property.
The structure of a housing mortgage in Germany is generally as follows:
- Mortgage duration of 5, 10, 15 or 20 years
- 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, an early loan repayment option could be granted with no additional charge.
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 mortgage.
Currently, German mortgages rates range from 1.3 percent to 2.5 percent depending on the property, the mortgage 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).
Mortgage in Berlin for non-resident
Unlike many European union countries (i.e France, Netherlands, Austria...), in Germany foreign and non-resident buyers have full access to the mortgage market and could benefit from attractive mortgage lending terms.
The standard structure of a non-resident loan mortgage for a german property is generally the following:
• 10 years fixed or variable mortgage 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, an early capital repayment option could be granted with no additional charge.
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 proffs of income (i.e 3 last payslips).
Our real estate agency works with a network of German banks and mortgage brokers, by means of which we are able to select for our clients the best offers available on the German mortgage market
We also arrange for our clients a bank account opening in Berlin in a local bank (Deutsche Bank, Commerzbank...) in order to facilitate the collection of monthly rentals and mortgage repayment.
Buy-to-let mortgage in Berlin
A buy-to-let mortgage in Berlin is a property loan specifically designed for buying an investment property in the city.
A buy-to-let mortgage gives you the opportunity to leverage your investment in Berlin and to increase your long-term profitability. Indeed, the profitability of a well-planned Berlin property investment would be higher than 10% where the mortgage rates are currently around 2% to 3%.
With a buy-to-let mortgage repayment, you could potentially receive an income from your property depending on the rental income.Your repayment rate will be based on the amount you expect to make in rent each month.
Whether you’re an experienced or aspiring landlord, our mortgage advisors in Berlin can help you make a success of your investment.
Ask us for a Berlin property mortgage loan!
You want to know more about the financing possibilities for your property purchase in Berlin ?
We provide you with comprehensive information about:
- Current market rates and conditions.
- Your borrowing capacity for a property mortgage in Berlin.
- Type of properties that the banks accept to finance in Berlin.
In order 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 form and we will get in touch with you with comprehensive information about best mortgage options for your property purchase in Berlin!