Non-resident mortgage in Germany: how buyers living abroad get financing

How a non-resident mortgage in Germany finances property for buyers abroad

Germany places no nationality restriction on buying land or apartments, so the obstacle for a buyer living in London, Dubai or Zurich is financing rather than ownership. For a non-resident mortgage in Germany, lenders weigh where the borrower lives, earns and pays tax far more heavily than the passport they hold.

Why your address matters more than your passport

German underwriting relies on verifiable local data: a Schufa record, a German employer, payslips taxed under German rules. A borrower abroad has none of these, so the bank must assess foreign documents, foreign law and enforcement risk, which many savings banks and cooperative banks simply decline.

Who this route suits

A mortgage for buyers living abroad suits foreigners buying a Berlin or Munich flat as an investment, Germans living abroad who want to return, cross-border commuters, and expats who have signed a German job contract but not yet moved. Each profile is priced differently, so brokers usually ask about residence plans first.

Typical lender conditions for buyers living abroad

Expect a non-resident mortgage in Germany to require a markedly larger deposit than a resident would need, often enough to cover all purchase costs plus a meaningful share of the price. Lenders also prefer income in euros or a major currency, permanent employment, and properties in liquid urban markets. Exact loan-to-value limits vary by lender and change over time.

Specialist brokers for a German mortgage for expats

Because direct bank access is narrow, several German mortgage brokers market English-language services to expats and international buyers. They compare offers from partner banks, translate requirements and prepare files. In Germany such intermediaries need a licence under section 34i of the Trade Regulation Act.

Purchase costs on top of the price

The real estate transfer tax (Grunderwerbsteuer) is set by each federal state and ranges from 3.5 % in Bavaria to 6.5 % in several states. Add notary and land-registry fees, commonly around 1.5 to 2 %, plus any agent commission. Banks rarely finance these costs for non-residents.

Documents German lenders ask for from abroad

For a mortgage for non-residents, prepare a passport, proof of foreign address, two or three years of tax returns, recent payslips or company accounts, bank statements showing the deposit, a credit report from your country of residence and the sale documents. Certified German translations are often required for anything outside English.

Income in another currency

Salaries paid in pounds, francs, dollars or dirhams expose the repayment to exchange rate swings. Many lenders apply a haircut to foreign-currency income or demand a lower loan amount. Ask how the bank converts income and whether instalments can be paid from a euro account.

Applying for a mortgage for non-residents, step by step

The sequence below reflects how a typical purchase moves from first enquiry to land-register entry when the buyer does not live in Germany. Timing depends on the notary, the land registry and how quickly translated documents reach the bank.

1. Calculate your equity, including transfer tax, notary, registry and agent fees.
2. Contact two or more licensed brokers and confirm their 34i registration.
3. Obtain a financing confirmation before reserving a property.
4. Open a German or euro account that the lender accepts for instalments.
5. Send the bank its valuation documents and wait for the binding offer.
6. Read the European Standardised Information Sheet and the loan agreement in full.
7. Sign the purchase deed at the notary in person or through a notarised power of attorney.
8. Pay the transfer tax so the tax office issues the clearance needed for registration.

Regulation and checks before you sign

Residential mortgages fall under the German Civil Code provisions implementing the EU Mortgage Credit Directive, including a creditworthiness assessment and a statutory information sheet. Banks are supervised by BaFin, whose company database lets you confirm that a lender or credit institution is authorised.

Mistakes and red flags

• Reserving a flat before any lender has looked at your foreign income.
• Assuming a broker is independent when it is linked to the seller.
• Ignoring exchange-rate risk on a euro loan repaid from a non-euro salary.
• Paying a so-called processing fee to an unknown German lender before a contract exists; licensed brokers do not demand deposits wired abroad.
• Signing a German-only contract you cannot read without independent translation.

FAQ: Can I get a German mortgage without a Schufa record?

Yes, some lenders accept a credit report from your country of residence instead. Brokers working with international buyers know which banks do so. Expect closer scrutiny of bank statements and employment, and a smaller loan than a resident with Schufa history might receive.

FAQ: Do I have to travel to Germany to sign?

The purchase deed must be notarised, but buyers abroad can sign through a notarised and, where required, apostilled power of attorney. Loan documents and land-charge deeds may also be executed remotely. Ask the notary early which formalities apply in your country.

FAQ: Do EU Blue Card holders count as non-residents?

Not once they have moved and registered an address. A Blue Card holder living in Germany is assessed as a resident foreigner, usually on better terms. Before arrival, however, the same person is a non-resident applicant with a signed contract and limited local history.

FAQ: How much equity should a buyer abroad plan for?

On an expat mortgage in Germany, plan for all ancillary costs plus a substantial portion of the price, then confirm with brokers. Requirements differ by bank, property location and income currency, so no single percentage applies. Treat any promise of full financing for a non-resident with caution.

Before committing to a purchase

Collect at least two written offers, compare effective interest rates and early-repayment terms, and check every lender on the BaFin database. A slower, documented process protects a buyer living abroad far better than a quick approval offered over a messaging app.

By Nabil Frik · Updated 28 October 2026