How to get a mortgage as an EU Blue Card holder in Germany
There’s a lot of misleading information out there about getting a mortgage in Germany as an expat and EU Blue Card holder.
You are an expat living the life in Germany. You have a highly paid job, live in a metropolitan area, and feel at home here. Maybe you have started a family and would like to own your own home, because the cost of renting a house or a nice large apartment significantly exceeds what you could be paying for a mortgage.
If you are an EU citizen or have a long-term residence and work permit in the EU, no problem! All you need is enough equity capital to pay the transaction costs – things like land transfer tax, notary fees and the estate agent’s commission. Assuming the amount you want to borrow is not more than one hundred times your monthly net income, including child benefits (Kindergeld), you will get a mortgage from the bank with the most favorable terms.
But what if your residence permit is limited? In other words, what if you’re an EU Blue Card holder?
Mortgage options in Germany for EU Blue Card holders
The situation in this instance is, of course, quite tricky, because having a limited residence permit like an EU Blue Card is, unfortunately, a knockout criterion from the perspective of almost all banks in Germany.
There is quite a lot of misleading information about possible mortgage offers. In fact, only a couple of banks currently offer loans to this group of customers. Let us take a look in more detail:
Two German banks offer up to 90% financing.
Two of these banks are offering finance up to 90% of the purchase price. The remaining cost (the deposit) and the transaction costs should be available in cash. The banks do not allow you to take out a personal loan to cover these costs.
Could I get a 100% mortgage?
This situation is of course extremely unsatisfactory and frustrating for expats with a Blue Card. After extensive discussions with banks in Germany, however, we have managed to find an acceptable solution, which might be just what you are looking for.
Under the following conditions, a bank cooperating with us exclusively is offering attractive financing for up to 100% of the purchase price (not the purchase fees).
- The loan must be at least EUR 300,000. So the family’s net income, including child benefits, must be at least EUR 3,000 per month.
- The property must be located in one of the metropolitan regions of Germany and not in a rural area.
- The capital repayment must be sufficient in order to pay off the loan until you reach your pension age (67 years).