Getting a mortgage without permanent residency

32 posts in this topic

Posted

Hello im new ,

my other post didnt come trough i guess cause im too new ):

anyway ill try again since this topic hasnt been covered yet.

Been here for 5 years with a Selbstständige Tätigkeit non EU , have a good income for Berlin , im a performing musician with certain success.

I would like to get a mortage with a down payment of 45-50 percent but im not sure if its posible cause my visa is "renewable" , i can get a permanet residncy this year but the banks have no idea of this rules or matters ..

i went to Deutsche bank and it seemed new for them as well but they said they will look into my case , sureley they where happy im making an almost 50 percent downpayment but im afraid that my visa situation can get on my way...

has anyone succeded getting a mortage without having a permanent residency yet?

I also went to Postbank , they gave me a pretty bad rate and then told me i would require P Residency to apply , Deutsche bank didnt say anything about this requirement .

Thanks

0

Share this post


Link to post
Share on other sites

Posted

since you can also get a mortgage as a non-resident if you want to invest into German property, your VISA status has only slant meaning for getting a mortgage in general. If you have tax records for the last three years which show are more or less steady income, getting you a decent mortgage with 60% LTV or so should not be a major problem. In order to avoid the hassle of dealing with a number of more or less competent local bank clercs, get the help of an independent mortgage broker...

Cheerio

2

Share this post


Link to post
Share on other sites

Posted

thanks so much ..you advise makes so much sense actually, im always a little karmatic about my passport and quite paranoid as a non EU ,but you are right ,.

meeting a profesional mortage broker next week hopefuly it will work out.

many greetings

0

Share this post


Link to post
Share on other sites

Posted

back to this thread , i applied to a relatievly small mortage on Deutsche Bank ,(70 percent property downpayment from my side) all papers in order , relatively good salary and paying tax for 5 years in Germany (with self employed visa,..)

The application looked positive and i was told by my bank representative it wont be a problem at all..

Bank got back to me after 1 and a half months with the news that starting june 09 they wont give any mortagtes or even loans to non residents ...my application got caceled .

im back to point one again ...

Does anyone have advise on this which is current and realistic?

...considering the Duetsche bank is (or was ) a foreighn friendly bank does this mean i have 0 chance with any other institution until i get a permanent residency?

I was told by someone that if the Dbank rejects me its very likely that all others do so..

Thanks

0

Share this post


Link to post
Share on other sites

Posted

Many banks will not give loans to foreigners or atleast foreigners without a permanent work/living permit.

If DB won't give you one, then find a different one that will. Also consider making your permit permanent

0

Share this post


Link to post
Share on other sites

Posted

I was told by someone that if the Dbank rejects me its very likely that all others do so..

wrong. All banks have entirely different rules and standards - so a denial from one bank does not automatically lead to to denial of all. Only thing happening is probably that your SCHUFA score is somewhat worse than before, but again, no prob here.

It could also be that your mortgage is simply too small. if the amount you want to borrow is <50k EUR, it is not even considered a real mortgage anymore by most banks. Thus you need to borrow more (but still with a LTV goal of only 50% or so) in order to get this thru with a bank.

Cheerio

0

Share this post


Link to post
Share on other sites

Posted

Definitely shop around for a mortgage. We just bought a house and talked to:

  • Sparkasse
    Volksbank
    Allianz

In the end we went with Volksbank because they had the best rates and were willing to work with us. We really like Sparkasse, in general, but they were so slow to make a decision that we wrote them off. Our Allianz rep (we have pensions from them) is very good and very willing to work with us, but Volksbank just had a better rate.

There are no restrictions on non-Germans or non-EUs owning property, so just go for it and don't let any bank get you down.

0

Share this post


Link to post
Share on other sites

Posted

thanks , well my question is if anyone got a mortage with a Visa (renewable-selfemployed or sort of ) instead of Permanent residency ..?

Of course once i get the chance im gonna change my status as permanent but as many know we need to wait for 5 years for this ,

luckily for me this is this August but i will also probably have to wait a few more months more for the process of application and then another few more ater appliying to a new mortage again and i might loose the property

the property has been hanging in the market for a few months , but i didnt want to reseve it cause i was afraid thie exact thing was gonna happen and id loose the reservation money..

im trying to borrow around 60 grand only i didnt know this was too low for a mortage !);

would it be better to ask for a private credit then? does someone have an english mortage speaking broker that has deal with foreinghs before? ,

i speak German but not that great, reason why i went to Deutsche bank in fisrt place,..

thanks

0

Share this post


Link to post
Share on other sites

Posted

does someone have an english mortage speaking broker that has deal with foreinghs before

Cough,cough: did you ever check the advertisements here on Toytown? You might actually find someone there... ;-)

Sometimes an easy solution can be only just a click away

Cheerio

0

Share this post


Link to post
Share on other sites

Posted

[adminmerge][/adminmerge]

Would really like to know if anyone has been able to gain a mortgage when they are here on a working visa. I am eligible for a mortgage (i.e. I satisfy all of the income requirements and have a long term job) but I am on a 2 year work visa because I am an Australian citizen. This visa can be extended again after 2 years. I went to DB and they said they could not give a mortgage to someone who does not have a permanent visa.

If anyone knows a financial institution that lends to people with a 2 year visa, please let me know and I will contact them.

There was an old thread on this topic, however, nobody was able to give a concrete solution to this.

Thanks

0

Share this post


Link to post
Share on other sites

Posted

without a permanent residence permit you would be considered like a foreign investor. Which means you'll only get at best 60% mortgage (usually with some extra risk margin, it gets down to 50-55% or so). Can't think any GErman bank would offer you more, I am afraid.

Cheerio

2

Share this post


Link to post
Share on other sites

Posted

I think there may be an error in this. I am NOT a permanent resident and I had no problems getting a mortgage. I had one bank and two mortgage lenders competing for my business. I do have a permanent work contract and I put about 15% down. I have been here three years and I have another two years on my residency permit, although I was told the next renewal it will become permanent.

0

Share this post


Link to post
Share on other sites

Posted

No error, methinks. If you read what Starshollow has said over and over you will find it pretty similar to what happened to you, only the margins are varying...

I went to DB

There you go, mistake number one. Go to an independent advisor who can look across the entire market, not just peddle something from one company. Before I met some of the local advertisers on TT, whose integrity I can now testify for, we went to Interhyp for our mortgage and they did a very good job too.

0

Share this post


Link to post
Share on other sites

Posted

Fluglotse: excuse my simplified answer above... if you have already been in Germany for some time, have a still valid residence permit which will be turned into a "Niederlassungserlaubnis" next time, meet the income criteria AND offer a downpayment of more than 10% at least, you'll have a more than fair chance for a mortgage. Only if you are relatively new in Germany, still on your first residence permit AND perhaps, like some, want a 100% financing, the chances are grim. Mortgages, like basically everything else in finance, are never "one size fits all" and require a case by case analysis. However, German banks have become more worried since after the recent crisis and it is far harder for Expats to get a mortgage,same for foreign investors, too. That is at least a well established trend by now...

Cheerio

0

Share this post


Link to post
Share on other sites

Posted

Hi, Starshollow,

Thanks for the update. I closed on the place yesterday...now I just have to hope it is built on time.

0

Share this post


Link to post
Share on other sites

Posted

[adminmerge][/adminmerge]

Hi,

I am hoping to buy an apartment in Berlin. I am working here under a sponsored work visa. I applied to Deutsche Bank and inquired at Commerzbank in Berlin about financing for buying an apartment. They said financially I was fine but that they could not lend money to someone who does not hold permanent residence.

Has anyone had personal experience of this where they have found a bank recently that gives mortgages to people living in Germany on work visas without perm residence?

I would like to hear from people who have actually had specific success with this (not just opinions) and can give specific advice.

Thanks in advance!

-1

Share this post


Link to post
Share on other sites

Posted

Why do you want to buy a property when you don't know if you will be here long term? If you are either interested in an investment property or eventually renting out the property you buy if you move on AND can come up with a very large downpayment (perhaps as much as 60% of the purchase price), plus handle notary fees and other closing costs, approach the banks for a loan as an investor. TT's own Starshollow is a mortgage broker, and, if I were in your shoes I'd contact him first and discuss whatever it is you want to do.

-1

Share this post


Link to post
Share on other sites

Posted

Just wanted to add my experience with this as well. I am in the process of trying to find finance, and although I make good income (managerial employee with a permanent contract and can pay off the loan in less than 10 years), and can put 30% down, banks will not lend since I am not an EU citizen / permanent resident. The situation changes if I were to put more down, but my mortgage broker is having problems finding a bank willing to give a mortgage at 30% down. He's going to call banks to see if something can be arranged specially.

Small little rant: it's moments like this that makes me feel completely unwelcome in Germany, like a second class person.

On the plus side, I will get a permanent residency in 2 years, so it would be different then.

0

Share this post


Link to post
Share on other sites

Posted

I think there may be an error in this. I am NOT a permanent resident and I had no problems getting a mortgage. I had one bank and two mortgage lenders competing for my business. I do have a permanent work contract and I put about 15% down. I have been here three years and I have another two years on my residency permit, although I was told the next renewal it will become permanent.

Pray tell, where did you get your mortgage? My visa was to expire in May and I was denied a car loan by Daimler AG, Postbank, Deutsche Bank and ING based on that fact, even though I then went in personally and offered to take a six month repayment plan that would have repaid the loan before my visa expired. Income was definitely not a problem and they had completed all the paperwork and I thought I was approved until their back office called and said, "It says on his application that he is American. When does his visa expire?" and that was the end of that. Car for cash or no car at all.

0

Share this post


Link to post
Share on other sites

Posted

Contact these guys Dr. Klein I´m also Non Permanent but EU.

0

Share this post


Link to post
Share on other sites

Posted

Residency vs Real-Estate Investment...should be apples and oranges.

0

Share this post


Link to post
Share on other sites

Posted

Contact these guys Dr. Klein I´m also Non Permanent but EU.

Dr Klein is good, no doubt - as are Interhyp and some others...but how can they help to a non-EU-Expat with a time-limited VISA? That is the main problem here...only thing those can get is a mortgage like someone from abroad who want to invest in Germany, which usually requires around 40-50% downpayment.

Cheerio

0

Share this post


Link to post
Share on other sites

Posted

This looks like the right thread... I am very interested in any recent mortgage successes for non-EU citizens without permanent DE residency. That's the wall I am currently beating my head against. Despite 4 years in-country, solid income, permanent labor contract, well-known stable employer, 10% down payment -- most banks are refusing me on the grounds that I present too much of a risk. I do have one offer, however the interest rate is above-market, plus they want a Zustellungsvollmacht (which I see in another thread can be arranged - still, it is one more hassle).

I qualify for a Niederlassungserlaubnis in September 2013. I am told that the Auslenderbehoerde will even give me a statement to that effect. To me, that seems like a significant mitigating factor, compared with someone who just got here. Has anyone had positive recent experience under similar conditions?

I don't see why I should have to pay above-market, or wait another 9 months based on some improbable chance that I might suddenly flee the country.

0

Share this post


Link to post
Share on other sites

Posted

Despite 4 years in-country, solid income, permanent labor contract, well-known stable employer, 10% down payment -- most banks are refusing me on the grounds that I present too much of a risk.

Contact Starshollow for a quote, he specialises in insurance/financial services for expats and from his previous posts in this thread he should be able to find something for you.

You might want to also see whether you can use one of the new short cuts to an NE (whether or not you're eligible depends on many factors).

0

Share this post


Link to post
Share on other sites

Posted

But don't expect an immediate answer from Starshollow, judging by Equity Release Scheme he won't be back in his office until early January.

0

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now