Getting a Mortgage in Germany as a Foreigner

Q: Can foreigners buy property in Germany?

Yes — Germany has no restrictions on foreign property ownership. Any nationality can buy, whether resident or not. The practical hurdle is the mortgage, which depends on your residence permit and income situation.

Q: Do I need permanent residency for a German mortgage?

No, but it helps. EU citizens and permanent residents get standard conditions. Blue Card and temporary-permit holders can usually still borrow with a small rate premium or a higher down-payment (often 15%–20% minimum equity).

Q: How much deposit do foreigners need?

At minimum the closing costs (9%–15% of the price). Banks often want temporary-permit holders to additionally put 10%–20% toward the price itself, lowering the loan-to-value.

There are no legal restrictions on foreigners buying property in Germany — any nationality can own real estate here. What changes with your passport and residence permit is the mortgage: rate, required equity and the bank's risk appetite.

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How banks treat different residence situations

EU citizens & permanent residents (Niederlassungserlaubnis) — standard conditions, same as German nationals
EU Blue Card / residence permit valid > 2 years — usually financeable, often with a small rate premium (around +0.15 percentage points) — see the Blue Card guide
Temporary permit < 2 years — possible but harder: expect a larger premium (around +0.35 points) and a strict 15%–20% minimum down-payment

What lenders look at

German banks underwrite conservatively: permanent employment past the Probezeit, household income in Germany, Schufa history, and enough equity to cover the 9%–15% closing costs yourself. The shorter your remaining permit, the more equity they want to see — the bank's worry is relocation risk, not your nationality.

Calculate your realistic rate before talking to a bank

TilgungsPilot is the only free calculator that models the residence-status premium explicitly: pick your permit type and see a realistic personalized rate, monthly payment and full amortization schedule in English — based on live Bundesbank market data.

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Frequently asked questions

Can foreigners buy property in Germany?