Mortgage for non-resident with German connections

11 posts in this topic

Hello, wonderful people of Toytown!

 

I would like to get a mortgage, but have a set of unique (I believe) circumstances.

 

1. Would love to buy a property in Munich. Used to live in the city for 7 years.

2. I have a bank account with DKB with 20% of the property value on it.

3. Property would cost 6 times my annual income after tax and housing expenses (I hope that makes sense).

4. My wife is German, but the DKB account is in my name (she has the second card in her name on that account).

 

so far so good, here comes the tricky bit:

 

5. We are both non-residents, living in a non-EU country.

6. Wife is finishing her studies (so I am the single income earner at the moment).

7. I have worked two years in my current job and just got a promotion in the same company with a contract extension of another 2 years.

8. I am an Australian citizen.

9. I am 35 years old.

 

What do ya recon? Who will be willing to give me a 80% mortgage for a place in Germany?

 

Would love to call my bank (DKB), but I would sound so terrible in German (Ich wolle Geld haben) and wife is rather clueless when it comes to the financials (unless we are talking the important stuff: dresses). :)

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I haven't purchased property in Germany from abroad, but I think you'd have a much better shot at getting a mortgage if you could come up with a downpayment of at least 40%, and possibly 50% of the purchase price.

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I don't think it's a runner with "just" a 20% deposit for a non-resident to buy an investment property. They'll want more like 50% for such a scenario BUT nobody except the bank can answer the question at the end of the day.

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You're welcome. I expect our resident expert on mortgage, starshollow, will be able to give a more authoritative answer however.

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The bank will loan you based on their valuation of the property, which may be more, or less than what you paid for it. For a commercial loan then 50-60% of the value would be reasonable, more if you can offer additional collateral or a lucrative (but viable) business plan or can show experience in the field. Don't forget to factor in the actual costs of purchase (taxes, legal fees, etc) which can add up to 10% onto the purchase price.

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Regarding mortgages I highly recomend contacting Starshollow (TT advertiser) we just got approval on 2 mortgages on a very tight deadlines and Paul (one of his mortgage brokers) worked wonders to get it done. It was really down to the wire but he pulled it!!!

 

Here is the link STarshollow

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as an independent mortgage broker we deal with inquiries like this often. While 100% financing is virtually impossible for non-residents (which amazes many people from the US and UK) unless we are talking about a property value > 5 million EUR with a large number of well diversified tenants whose rent covers the mortgage dues well, there are actually 1-2 banks who will offer up to 80% even if they both live outside of the EU. One particular bank will do 80% for non-residents but 70% of the calculated rent will have to cover the mortgage repayment at least. If you can swing that (and provided the bank confirms the value of the property according to your purchase price), our mortgage expert Paul Downes can get you a decent offer.

Cheerio

I am a professional independent insurance broker, financial adviser, and authorised advertiser. Contact me.
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Surprisingly, my German wife seems to have done the trick: DKB offered us 2.5% fixed for 10 years with 95% LVR. I shall keep you posted on the progress.

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