Obtaining a Mortgage for a Property In Germany - Jan 2010
The Banks attitudes to lending seems to me to change on a week by week basis, from our recent experience this appears to be the current situation
As a foreigner it is currently very difficult to arrange finance. However the German Banks will lend to anyone in the German tax systems so you need to be living and working in Germany.
Needs to have a purchase price 60,000 Euro plus and then anything from 35 – 50 per cent will be advanced depending on district, purchase price ,rental yield certain areas are not financiable like Wedding and Neukolln.
In Saxony Apartment Blocks needs to be virtually fully tenanted and in good order then we are looking 50 %to 70%, each application is assessed on an individual basis. The rental income is very influential in the loan assessment
In Berlin the situation is similar to the above but as rental yields will be lower in Berlin I wouldnt expect more than 60%
In both situations any block mainly empty or for renovation no finance will be offered until it is in good order and tenanted.
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