Financing basics for internationals

Mortgage in Germany for expats

Financing is usually the hardest part of building in Germany as a foreigner. This guide explains realistic loan-to-value expectations for non-residents, what the Schufa credit bureau is, and the documents German banks typically request.

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Important: this page is general information only and is not financial advice. It does not constitute a loan offer or a recommendation. Lending conditions depend entirely on your bank, your income and the property. Always obtain a binding offer from a licensed bank or an independent, regulated mortgage adviser before making decisions.

Loan-to-value: what non-residents can expect

German banks lend a share of the property value known as the loan-to-value ratio (LTV). Residents with stable German income and a positive Schufa record can sometimes finance a high share of the price. Non-residents are usually offered a lower LTV — as a rough guide for 2026, often around 50–70% of the value. That means you should be prepared to bring 30–50% of the price as equity, plus the ancillary purchase costs on top.

Mortgages in Germany are typically repaid with a fixed interest rate for a chosen period, such as 10 or 15 years. Because rates move with the wider market, comparing several lenders and brokers is worthwhile. For an overview of how the transfer tax, notary and land-registry fees add to your total, see our property taxes & fees guide.

Three things to prepare

Lower LTV for non-residents

As of 2026, expect roughly 50–70% loan-to-value as a non-resident — so budget 30–50% equity plus the ancillary purchase costs.

Schufa credit record

Banks check the German Schufa credit bureau. Newcomers have no history yet, so income, employment and equity carry more weight.

Documents & translations

Passport, proof of income, bank statements, evidence of equity and its source. Foreign-language documents usually need a certified translation.

Schufa and building a German credit profile

Schufa is Germany's main private credit bureau. Banks check your Schufa record to assess creditworthiness. If you are new to Germany you will usually have no Schufa history — this is not a negative entry, but it gives the bank less data, so your income, employment contract and equity carry more weight. You are entitled to one free self-disclosure (Bonitätsauskunft) per year; see the official Schufa information for consumers for details.

Over time, holding a German bank account, paying bills on time and servicing any credit responsibly builds a positive profile that improves your borrowing terms. If you are still deciding whether to build, our broader guidance for internationals sits on the foreigners' hub.

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FAQ: mortgages in Germany for expats

Answers on loan-to-value, Schufa, documents and using equity from abroad — general orientation for 2026, not financial advice.

Can expats and non-residents get a mortgage in Germany?

Yes, but conditions are stricter than for residents. German banks assess income stability, the property value and your credit record. As a general guide for 2026, residents with stable German income can often finance a high share of the price, while non-residents are typically offered a lower loan-to-value ratio and may need substantially more equity. This is general information, not financial advice — the only reliable figures come from a bank's individual offer.

How much can I borrow as a non-resident?

As a rough guide for 2026, non-residents should expect a lower loan-to-value (LTV) than residents — often around 50–70% of the property value, meaning 30–50% equity plus the ancillary purchase costs (transfer tax, notary, land registry, agent fee). EU expats living and earning in Germany may be offered higher LTVs closer to those of residents. These ranges vary by bank, income and property, so treat them as orientation only.

What is Schufa and do I need it?

Schufa is Germany's main private credit bureau. Banks check your Schufa score to gauge creditworthiness. Newcomers usually have no Schufa history, which is not a negative mark but means the bank has less data — expect it to weigh your income, employment contract and equity more heavily. You can request one free Schufa self-disclosure (Bonitätsauskunft) per year. Building a German banking and payment history over time improves your profile.

What documents do German banks ask for?

Typically: a valid passport or ID; proof of income (recent payslips and, for the self-employed, tax assessments and business accounts); bank statements; evidence of equity and its source; an employment contract or proof of stable income; and, for non-EU applicants, your residence status where relevant. For the property itself, banks want the purchase contract or building description, plot details, plans and cost breakdown. Documents in other languages usually need a certified translation.

Are there special interest rates for expats?

There is no separate 'expat rate', but non-residents often receive a small interest premium and a lower LTV to reflect the bank's higher perceived risk. Rates in Germany are mostly fixed for a chosen period (for example 10 or 15 years). As of 2026, rates move with the wider market, so it is worth comparing several lenders and mortgage brokers. Any rate you see advertised is indicative until a bank issues a binding offer for your situation.

Can I use equity from abroad?

Often yes, provided you can document its source under anti-money-laundering rules. Banks generally accept foreign savings transferred to a German account as equity, and some accept property abroad as additional security. Currency matters: if your income or equity is in a non-euro currency, exchange-rate movements add risk, and lenders may factor this in. Discuss cross-border equity with the bank early so it can be verified in time.

As of 2026, general information only and not financial advice. Prefabricated House is an independent comparison portal and is not a bank, mortgage broker or financial adviser. All figures are indicative and vary by lender, income and property. Obtain a binding offer from a licensed provider before committing.