Funding opportunities for foreign investors in Germany are determined primarily by the property to be financed. Sometimes, however, the investment strategies or the solvency of the investor can play an important role.
The moment you have found an ideal object, you should contact a mortgage broker, who will seek attractive deals from a group of banks . You can usually finance 40% to 60% of the purchase price. For entire buildings, funding ranges from 50% to 70%. The main criteria for determining the amount of the loan are the net rent, the location and condition of the property.
If the investor accepts the offer of the bank, the broker must be provided with a copy of your passport and all documentation relating to his assets. He will ask at the same time for all the documents relating to the property. Depending on the bank, the approval process for a mortgage can take any time from 3 days to 4 weeks.
The minimum mortgage amount is € 25,000, so funding can only be asked for units with purchase prices from € 48,000 on. In special cases it is possible to finance two adjacent buildings, sold together as a package, in order to reach the minimum amount required.
The fee for the broker will usually be paid by the credit institute and not by the investor.