Berlin Property for Sale
A web resource for UK and Irish buyers looking to invest in Berlin propertyBerlin Property for Sale
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| Financing | ||
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Although many German banks will lend to foreigners, the process is not as simple as it would be for someone who lives and works in Germany. Typically an overseas buyer will only be granted a mortgage of up to 60-70% of the value of the property, whereas a native buyer could secure up to 80%. In general the greater the deposit you can put down, the more favourable terms and conditions you will be able to secure. |
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A typical rate of interest for a 70% mortgage fixed for 10 years
is currently around 5%. Buyers may also find that many banks are
reluctant to finance the purchase of any property under the value
of €200,000, although there are some banks which will make
an exception to this. Most of the mortgage application process can
be completed remotely, using fax or scanning and email to send over
copies of the relevant documents, providing proof of income and
so on. You will however need to visit the bank in person to sign
the loan contract, in the presence of an interpreter if you are
not fluent in German. |
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banks also have a requirement that you must nominate a person who
lives and works in Germany to receive all documents on your behalf,
in case you should default on your mortgage payments. You may need
to sign a legal document giving your agreement in this matter. It goes without saying that you should secure financing before signing any documents in relation to the purchase, otherwise you may still incur agent and notary fees in the event that you are unable to complete |
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