Can I buy a house in Germany. Possibility of mortgage lending of foreign nationals. Accommodations in Germany , of course, you can buy . But what to do if their funds are insufficient , and buy , well, really want . You can also try to get a loan – so called loan secured by an apartment or house that you intend to purchase .
Buying real estate in Germany , it is possible to get a loan with the bank directly or through special mortgage broker who knows exactly when and where better to handle. Should pay attention to the fact that you have to provide proof of the sufficiency of your income to repay the loan .
German banks rarely give loans for the purchase of low-cost housing . Most often, contracts are made in excess of 50 000 €. If we consider that the maximum is given credit for 50-60 % of the amount of the transaction , it makes sense to turn to the bank , if you buy the property , the cost of which exceeds 90 000 €.
Term of mortgage loan can vary from 5 to 20 years . The average interest rate for mortgage loans of 3-6% per annum.
If your property is rented and brings a stable income , the income derived from the rent for the apartment, easily covers payments on the loan.
Before you decide to arrange a mortgage, all carefully weigh and calculate – the banks will expect from you in the precision of the maturity of the loan. And it should be borne in mind that according to German law , real estate owned by the bank as long as the loan is not repaid .
In Germany, there are three types of mortgage lending : credit with a solid interest rate , loan repayment and loan installments.
The most common type of mortgage lending in Germany is a loan to pay or annuity . With this type of credit the borrower pays the same amount per year , which is usually divided into 12 months. Of the amount paid , part goes to cover interest on the loan to repay part of the debt itself . Eventually part of the credit, which accrues interest decreases, and at a constant contribution , the loan repayment rate increases.
The annual fee is determined at the annuity contract , and is unchanged for several years , which should be specified in the contract. After this period the need to re- define the bank to contributions for the next period .
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