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02Service 02 of 04, financingMortgage financing for expats buying investment property in Germany
LDP arranges the mortgage as part of its investment service. We prepare your file, run it with FM Zinswerk, an independent broker comparing more than 400 banks, and coordinate the bank until approval, typically within four weeks. You pay no extra fee for this; our in-house brokerage licence is in preparation.
Figures from the cases LDP has financed and from the broker. Residents of Germany and the EU only.
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What LDP does for your financing
Financing is not a separate product at LDP. It is one step in the same process that sources the property, structures the tax side and hands the flat to rental management afterwards. That matters for the bank: a lender sees a complete file, with the purchase price, the renovation budget, the expected rent and the equity in one place, instead of a loan request without context.
Income documents, equity proof, SCHUFA or its equivalent, the property exposé and the renovation plan where there is one.
Interest rate, fixed period, repayment rate, special repayment rights and the equity the bank requires.
LDP is preparing its own brokerage licence under section 34i of the German Trade Regulation (GewO). Once it is granted, the same process runs in-house. Until then, FM Zinswerk is the licensed broker on every case and you deal with one contact at LDP throughout.
Who a German bank will finance, and on what terms
Where you live matters more to a German bank than which passport you hold. Residents of Germany are financed like any German buyer once income and equity fit. EU residents outside Germany are financeable through a narrower set of banks. Non-residents outside the EU are the case we do not take on: the number of willing lenders is too small and the conditions too poor to recommend it.
| Situation | Typical loan-to-value |
|---|---|
| Living in Germany, income in euros | Up to 80 percent of the purchase price, so 20 percent equity plus purchase costs |
| Living in Germany, income partly outside Germany or in another currency | Case by case, usually below the resident figure; some banks discount non-euro income by up to 25 percent |
| Living in another EU country | 50 to 60 percent, so 40 to 50 percent equity plus purchase costs |
| Living outside the EU | Not offered by LDP |
What to expect, based on the cases LDP has financed
Purchase costs come on top of the equity: property transfer tax of 3.5 to 6.5 percent depending on the federal state, plus roughly 2 percent for notary and land registry. Banks do not finance these costs. Current ten-year rates are on our German mortgage rates page, updated from the rate table we use in our own calculations.
Illustrative example with the loan-to-value figures from the table above, not an offer. Purchase costs here: 3.5 percent property transfer tax (Bavaria) plus about 2 percent notary and land registry; 3.5 to 6.5 percent by federal state. Equity and purchase costs come from your own funds, the loan covers the rest of the price.
Timeline
Initial screening call, financing file assembled, first indication from the broker.
Bank offers compared, one lender chosen, application submitted.
Bank approval, loan contract signed, notary appointment scheduled.
Payout against the purchase contract, coordinated with the seller.
Four weeks from the first call to bank approval is the usual run. It gets longer when income documents come from several countries or when the property needs a valuation before the bank decides.
Financing at a glance
What is not included
- Financing for buyers who live outside the EU.
- Loans for new-build developments; LDP works with existing buildings only.
- Owner-occupied home loans without an investment case; our process is built around rental property.
- Legal or tax advice. Both come from our partner firms, see the tax and structuring page.
How to start
Book a screening call. In 30 minutes we check whether your residence, income and equity fit a German bank, and you leave with a realistic loan-to-value and a list of the documents we need.
Frequently asked questions
Can I get a German mortgage as an expat with a work permit but no permanent residence?
Yes, in most cases. Banks look at the remaining term of your contract and permit, your income and your equity. A permit with more than one year left and a permanent employment contract is usually enough for a resident-style loan; a shorter permit narrows the lender list but does not close it.
Does LDP charge for arranging the mortgage?
No. Financing coordination is part of the LDP investment service and the broker is paid by the bank that issues the loan. You pay the bank its interest and the notary and land registry their fees, nothing to LDP or FM Zinswerk for the brokerage itself.
I live in Spain and want to buy a flat in Berlin. Is that possible?
Yes. EU residents outside Germany are financed by a narrower set of banks at 50 to 60 percent loan-to-value, so you need 40 to 50 percent of the price plus purchase costs in equity. The notary appointment can be handled by power of attorney if you cannot travel.
My salary is paid in US dollars. Does that block a German loan?
Not if you live in Germany or the EU. Some banks discount income in a non-euro currency by up to 25 percent when they calculate affordability, which lowers the loan amount rather than the chance of approval. We know which lenders apply the discount and which do not.
Why does LDP work with a broker instead of one bank?
Because the right bank depends on your case. A resident with euro income, an EU resident with foreign income and a buyer with a short SCHUFA history each get their best terms from different lenders. FM Zinswerk compares more than 400 of them, and the comparison costs you nothing.