Poles living in Germany with a stable source of income (employment contract, self-employment, pension, disability pension, freelance work) can apply for a mortgage, just like German citizens. Why is it worth applying for a mortgage in Germany? Current mortgage offers from banks are very attractive. Low interest rates make it possible to fulfill the dream of buying a house or apartment for those who cannot finance the property with savings or cash. Mortgage loans in Germany are also available without a down payment. The main advantage of a no-down payment mortgage is that it can be obtained without any savings. Such a loan amount can reach up to 110% of the property's value – it can cover not only the property price but also related costs, such as notary fees, land and mortgage registration, etc. However, this type of loan is more expensive than a mortgage with a down payment. Application form / calculator for a mortgage in Germany for amounts over €50,000. If the loan amount does not exceed €50,000, you should use the loan calculator for cash loans. You can find it on this page:
Mortgage in Germany - information and calculator
- Mortgage calculator
- Mortgage in Germany
- Mortgage loan formalities
- Submitting a loan application in Germany
- Signing a loan agreement
- More articles about loans in Germany
- Mortgage payment
- Early mortgage repayment in Germany
If you need help translating the text because the available comparison tool is in German, you will probably find it useful to have a Google dictionary open in a new browser tab, which you can access by clicking here.
Mortgage in Germany:
- calculator – allows you to get offers from German banks and choose the best one
- conditions – registration in Germany, bank account, employment contract or business activity conducted in Germany
- for an apartment in Poland – if the apartment we choose in Poland costs less than 50,000 Euro, we can obtain a so-called "cash loan for any purpose". You can find the cash loan application here
- For Poles, much has changed since joining the European Union. Now, Polish citizens registered in Germany can apply for a mortgage on the same terms as German citizens.
Mortgage loan formalities
How can you finance the purchase of an apartment or the construction of a house in Germany? Not everyone has the savings to invest in a new property on their own. Banks come to the rescue by offering mortgage loans.A Pole employed and registered in Germany can certainly apply for a mortgage loan from a German bank.If you have a sufficiently high income and you have no history of debt repayment problems, you can count on a positive review of your loan application. Of course, taking out a mortgage involves numerous formalities. In our list, we'll briefly discuss the formalities you'll definitely need to address when taking out a mortgage in Germany.
Submitting a loan application in Germany
Before you decide to apply for a loan in Germany, you need to do your research well. analyze available offersPay attention to the final cost of the loan – this is truly crucial. It's worth noting that applying for a mortgage isn't as simple as applying for a cash loan. This isn't surprising, as the amounts involved are ultimately much larger. Be prepared that financial institutions may require various attachments to the application, including documents confirming your income.
Other important documents you will likely need to submit to the bank include:
- copy of the purchase and sale agreement,
- extract from the land and mortgage register,
- proof of fire insurance,
- cost breakdown,
- construction description etc.
You should expect the bank to check your credit history against the Schufa register. If your credit score is high, you can expect a positive decision. Important: If the bank rejects your application, it will be obligated to inform you of the reason.
Signing a loan agreement
If your mortgage application is rejected positively considered by the bank and you finally decide to borrow money from this institution, the next step will be signing a loan agreement.People interested in a mortgage loan are usually aware of what a standard loan agreement includes.However, remember that you still need to carefully read the final version of the loan agreement that the bank will prepare for you to sign.
Consider the optimal loan repayment date for you. Ideally, choose a date not too far from the date your salary is deposited into your bank account. Also, check whether the loan agreement includes any additional financial products, such as credit cards, insurance, etc., that could increase the cost of your loan.
Mortgage payment
It's important to emphasize that signing a loan agreement doesn't mean the bank will automatically transfer funds for the purchase of a given property. To approve the loan, the bank requires additional documents. In the case of purchasing a house or apartment, this may bea notarial purchase and sale agreement. However, if you want to build a house, you will need to provide information and statements from the developer. That's not all. When dealing with a mortgage loan, as the name suggests, a mortgage must be registered in favor of the bank. When the loan will be launched, the borrower is obliged to provide the lender with an entry from the land and mortgage register confirming the mortgage.
Early mortgage repayment in Germany
When applying for a mortgage, we are usually prepared to repay the loan over a period of several, or even several decades. When determining the repayment period, it's worth choosing an installment amount that won't represent a significant dent in your monthly budget. This will help you avoid cash flow problems in the event of temporary difficulties. Remember that you can repay the mortgage early. When signing the contract, you should pay attention to the early repayment terms applicable at your bank. Pay attention to deadlines and additional fees – assess whether early repayment of the loan will be profitable.
If you're looking for a loan offer from German banks, we encourage you to use a loan comparison tool. You certainly shouldn't base your decision solely on loyalty to the bank you've used before. Remember that with a mortgage, even a small saving on a single payment translates into significant savings over the entire loan term. Therefore, it's worth taking a few moments to compare current bank offers – using a comparison tool, you'll find the bank that will lend you the most for your new home.
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