How to get a mortgage as an EU Blue Card holder in Germany

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. Your German Mortgage has dug down right into the detail to bring us this transparent guide to Blue Card mortgages – and it seems there is a light at the end of the tunnel.

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 far significantly exceeds what you could be paying for a mortgage.

If you are an EU citizen or already 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 the 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 allowance (Kindergeld), you will get a mortgage from the bank with the most favourable 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 quite tricky, because having a limited residence permit like an EU Blue Card is, unfortunately, a knock-out 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 four banks currently offer loans to this group of customers. Let’s take a look in more detail:

Two German banks offer 90 – 95% financing

Two of these banks offer financing between 90% and *95% of the purchase price. The remaining cost (the deposit) and the transaction costs must be financed from your own funds. The banks do not allow you to take out a personal loan to cover these costs.

In addition, unfortunately, the bank providing *95% financing only covers properties in the Berlin metropolitan region and has very long processing times.

Two offer 100% financing

Another private bank offers 100% purchase price financing, but is also understaffed due to the COVID-19 situation. They need up to two months to even process the application. Unfortunately, no property seller waits that long. They have also set their interest rates very high.

A German building society also offers 100% financing of the purchase price. However, in addition to the financing, a building society saving contract must be concluded and it is not possible to repay the loan over the next 10 years. The yield of the building society saving contract is about 0,10%. This type of financing can therefore be described as highly unattractive.

A possible solution?

This situation is of course extremely unsatisfactory and frustrating for expats with a Blue Card. After extensive discussions with banks in Germany, however, Your German Mortgage has managed to find an acceptable solution, which might be just what you’re looking for.

Under the following conditions, a bank cooperating with Your German Mortgage is offering attractive financing for up to 100% of the purchase price:

  • The loan must be at least 400.000 euros. So the family’s net income, including child benefit, must be at least 4.000 euros per month.
  • The property must be located in one of the metropolitan regions of Germany and not in a rural area.
  • The fixed interest period must be 20 years, so that the customer and the bank avoid the risk of a higher interest rate after 10 years. The bank must adhere to this fixed interest rate, but the customer can terminate the loan after 10 years and seek new financing.
  • The monthly repayment must be at least 2,5 percent.

This is good news for many expats with an EU Blue Card, as property prices continue to rise despite – or perhaps because of – the COVID-19 situation. Many investors are looking for asset values such as gold, shares and real estate.

If your current circumstances meet these new criteria, Your German Mortgage would love to hear from you. They now have the product to enable you to secure your home.  



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