Mortgage in Frankfurt for expats and international professionals

Frankfurt attracts bankers, engineers, researchers, IT specialists and many other people from all over the world. After a few years, many of them wonder whether to keep renting or to buy their own apartment or house here. They also want to know whether a German bank will actually give them a mortgage.

Yes, getting a mortgage in Germany as an expat is possible. But German banks look at a few things more closely than you might be used to from other countries. This guide explains what matters, how the buying process works and how I can help you find the right bank.

Can foreigners buy property in Germany?

Yes. German law generally does not restrict buying property based on nationality or place of residence. You do not even need a residence permit to buy. The real question is not whether you may buy, but whether a bank will finance the purchase. And that depends mainly on your residence status, your income and your financial history in Germany.

Which residence permit do you need for a mortgage in Germany?

German banks lend for twenty or thirty years, so they want to know that you are likely to stay and keep earning in Germany. Your residence status is therefore one of the first things they check. Roughly, there are four groups.

• As an EU or EEA citizen you are usually treated much like German borrowers thanks to freedom of movement, provided you live and work in Germany.
• A permanent settlement permit (Niederlassungserlaubnis) is the strongest position for non-EU citizens. Many banks assess you in the same way as a German applicant.
• Many banks work with holders of an EU Blue Card, especially with a permanent employment contract. Under § 18c of the German Residence Act, Blue Card holders can apply for a settlement permit after 27 months, or after 21 months with German skills at level B1.
• With other temporary residence permits financing is harder, and fewer banks are willing to lend. Your chances improve with a longer remaining validity, a permanent job, a partner with a stronger status and more equity.

Every bank has its own guidelines, and they change over time. That is exactly why comparing matters so much for expats. Through my access to more than 600 banks, I can see which lenders actually accept your specific residence status.

How much equity do you need as an expat?

There is no single number that applies to everyone. As a general rule, the less secure your residence status, the more equity banks tend to expect. In any case, you should be able to pay the purchase costs (known as Kaufnebenkosten) from your own funds, because only a few banks finance these costs.

In Hesse, which includes Frankfurt, the real estate transfer tax alone is 6 % of the purchase price. On top come notary and land registry fees and, depending on the deal, an estate agent's commission. You can estimate the total with the purchase cost calculator (in German). A detailed breakdown is in my article on buying costs in Frankfurt (in German).

Why does your SCHUFA history matter?

SCHUFA is Germany's main credit bureau. German banks check your SCHUFA record before they lend. If you have only recently moved to Germany, your file may be very thin, which is not negative in itself, but gives the bank little to work with. A clean history with a German bank account, a mobile phone contract or a credit card over some time helps.

Credit history from your home country usually does not transfer automatically. Some banks may consider foreign documents, others do not. Be prepared to explain your financial situation openly and back it up with documents.

How does buying property in Germany work?

The process in Germany is formal and well regulated. Here are the main steps.

• Start with your budget and find out how much property you can afford before you start viewing. The affordability calculator (in German) gives you a first idea.
• Then compare financing offers and get a binding loan commitment before you sign the purchase contract.
• Next comes the notary. In Germany, a property purchase contract is only valid if it is notarised. The notary reads the contract aloud and explains it. If you do not speak German well enough, a translation is required, often with an interpreter present.
• After signing, a priority notice (Auflassungsvormerkung) is entered in the land register to secure your claim.
• You pay the purchase price once the notary confirms that all conditions are met. The real estate transfer tax must also be paid.
• Finally, you become the legal owner when you are entered in the land register (Grundbuch).

If you are looking at an apartment rather than a house, read my article on buying a condominium in Frankfurt (in German), which covers things like the owners' association and maintenance reserves.

Which documents do German banks ask for?

• Passport and residence permit, including its validity.
• Employment contract and recent payslips, plus your most recent annual tax statement if available.
• Proof of equity, for example bank statements.
• Details of existing loans and obligations, including abroad.
• Property documents such as the listing, floor plan and land register extract.

If you are self-employed, banks will also want tax returns and business figures for the past years. My article on mortgages for the self-employed (in German) explains the details.

How can I help you as an independent mortgage broker?

I am an independent, licensed mortgage broker with More-Less GmbH. I compare offers from more than 600 banks, which helps most when your situation does not fit the standard profile. I help you prepare your documents, find lenders that accept your residence status and guide you through to the loan payout.

Start with the financing check (in German) for a quick overview. The first consultation is free and non-binding, by phone, video call or in person at my office at Schwarzwaldstraße 98, 60528 Frankfurt. Contact me via the contact form or call or send a WhatsApp message to 06431 2807 666. I will find the right way to communicate with you.