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Mortgage in Germany: choice of real estate, conditions for obtaining a mortgage, necessary documents, conclusion of an agreement with a bank, mortgage rate, terms of consideration and repayment rules

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Mortgage in Germany: choice of real estate, conditions for obtaining a mortgage, necessary documents, conclusion of an agreement with a bank, mortgage rate, terms of consideration and repayment rules
Mortgage in Germany: choice of real estate, conditions for obtaining a mortgage, necessary documents, conclusion of an agreement with a bank, mortgage rate, terms of consideration and repayment rules
Anonim

Many people are thinking about buying a home abroad. Someone might think that this is unrealistic, because prices for apartments and houses abroad are too high, by our standards. It's a delusion! Take, for example, a mortgage in Germany. This country has one of the lowest interest rates in all of Europe.

Since the topic is interesting, you should consider it in more detail, as well as study in detail the process of applying for a home loan.

About the real estate market

Before talking about mortgages in Germany, it must be noted that the demand for housing in this country exceeds supply. It is very difficult to find new buildings in completed properties. But there are a lot of offers to buy an apartment in buildings that are just starting to be built.

What about prices? There are both high and low. One thing can be saidExactly: prices rise in the direction from east to west. The most expensive housing in the capital of Bavaria - Munich. There 1 m2 costs from 4000 euros. Much cheaper in Berlin - 2500 euros.

In any case, even if a person wants a one-room apartment or studio, a solid amount of about 150-200 thousand euros will be required. Fortunately, German banks offer mortgage loans to both their own citizens and residents of other countries. You can take both the entire amount for the purchase, and several tranches if you plan to buy unfinished housing.

And now the most important thing. What is the mortgage rate in Germany? For Germans, it ranges from 0.8 to 2%. And for foreigners it varies from 3 to 5%.

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Buying a home to rent out

Many people take out a mortgage for this very purpose. You can understand why. Having bought an apartment in Munich or Berlin, a person can count on a yield of about 4% per year. Leased housing in Wuppertal will bring 8%, in Gelsenkirchen - almost 10%. High returns can be in Dortmund, Duisburg, Essen.

It's worth giving an example. Let's say a person bought a house for 8 apartments in Dortmund, giving 620,000 USD for it. One apartment will bring him about 6,500 euros a year. And all together - about 52,000 USD. Thus, the profitability will be 8%. That is, the mortgage will not only pay off, but also make a profit.

Features of conditions

If you want to take an apartment in Germany on a mortgage, it is better to look at options that cost more than 100,000 euros. At the current exchange rate, this is a littlemore than 8,000,000 rubles. For this money, a person will receive not a box, but a spacious apartment with decoration.

Why is it better to watch expensive options? Because banks are more willing to accommodate such foreign clients.

If we talk about the conditions, then they have features individually for each person. When drawing up a contract, many factors are taken into account, including:

  • Amount of down payment.
  • Solvency.
  • Credit history.
  • Property location and condition.

The first mortgage is more difficult to get than the second or third, which not everyone plans to take. When applying for a debut home loan, you may need to deposit 40-50% of the total value of the property.

This is both a plus and a minus. On the one hand, there will be fewer debts, and therefore, they will be able to pay off faster. But on the other hand, not everyone can save up and give away 4-5 million rubles at once.

But many banks agree to increase the amount while lowering the interest rate. By the way, if later a citizen decides to issue a second mortgage, then he, in the absence of problems with the first one, will not even need to make a contribution. Or it will be no more than 20% of the cost of housing.

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Client Requirements

If you are planning to get a mortgage in Germany, you need to know what is required for this. Clients are required to:

  • You must have an account opened with a German bank for at least 2 years. It is important that it is not empty. On himfunds must be received regularly.
  • Must be between 21 and 65 years of age.
  • You must have proof of income in Germany. Employees need to present an extract for the last 6 months, and entrepreneurs - for 2 years. But it's not just about work. The activity of the landlord is also a source of income.
  • You must provide proof of the presence or absence of loans or alimony. According to German law, a person should not spend more than 35% of monthly income on mortgage repayment.

Required documents

To apply for a mortgage in Germany, you need to come to the bank with a package of documents, which includes:

  • Original passport and copy.
  • Questionnaire with personal data.
  • A foreign passport and its copy.
  • Confirmation of income: for an individual - a personal income tax certificate. For an entrepreneur - the reporting of his company.
  • Documents for the property that the client wants to buy: a description of the object, its photographs, housing charter and an extract from the land register (it must be made a maximum of 6 weeks ago).
  • Results of home valuation.
  • A lease agreement is needed if the property is rented out.
  • Confirmation of the availability of the amount required for the down payment.

Be sure to translate all documents into German and have them certified by a notary.

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What is a survey?

In fact, this is an analogue of the form, which is usually filled out inRussian banks. The applicant's personal data questionnaire is a document containing brief information about the person who plans to take a loan.

It should contain information about his property, monthly income and expenses, which include other loans, rent, alimony, utilities and insurance. The fewer financial problems a client has, the clearer the credit history, the higher the likelihood that he will be approved for a mortgage in Germany.

About rates and payments

Recently, German banks issue loans with a fixed rate. This is convenient, since it will remain unchanged until the end of the loan period - it will not be affected by the exchange rate in any way.

They pay off their mortgage in Germany with annuity monthly payments: every 30 days the client must deposit the same amount into the account. It includes both mortgage interest in Germany and the amount of the main loan.

They say that it is realistic to individually agree on the possibility of repaying the loan ahead of schedule. But this is not very convenient for the bank, and therefore the rate will be higher.

And if the possibility of early repayment was not provided, then the person will also have to pay a fine. You need to think about it right away and take out a loan with the ability to repay the principal debt in an accelerated manner. Convenient solution: in 1 year you can repay approximately 10% of the loan.

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Example

So, let's say a person decides to take out a mortgage in Germany to buy a 39 m2 studio in the center of Munich2 with European-style renovation. Its cost is 290,000 euros. This is approximately 23,000,000rubles.

The initial payment will be 9,200,000 rubles. Of course, a person will need 13,800,000 loans, which is 171,735 euros. The German bank will provide such an amount, because their minimum is 50,000 USD. e.

Mortgage in Germany can be issued for a period of 5 to 40 years. But, as a rule, everyone takes 10. Let's say for a client they set an interest rate of 4%. Here is what happens in this case in rubles:

  • Monthly installment: 46,016.
  • Amount of interest for one year: 552,000.
  • All payments after the end of the credit period: 19,322,000.
  • Overpayment for all 10 years: 5,520,000.

It is important to note that until a person pays off debts at the mortgage interest rate in Germany, housing will be the property of the bank.

Expenses

Their existence must also be remembered. Talking about mortgage interest rates in Germany, it is necessary to tell about the costs. There are many additional costs when purchasing a home, among them:

  • Property tax. The rate varies depending on the location of the property. It usually ranges from 3.5% to 6%.
  • Payment for the service of re-registration of housing to a new owner. This will amount to 0.5-1% of the total transaction amount.
  • Notary fees (1.5-3%).
  • Commission to intermediaries (3-6%). Without brokers and re altors, transactions in Germany are not concluded. Especially with foreigners. In addition, they do the main job and make life much easier for the client.
  • Payment for the service of including a new owner in the cadastre (0.5%).
  • Commission charged for obtaining a mortgage in Germany for Russians and other foreigners (1%).
  • Payment for the appraisal of the property to be deposited as collateral (about $1,500).
  • Real estate audit (0.5-1.5%).
  • Issuance of certificates and statements, maintaining a bank account (up to 150 USD annually).

In total, if a person plans to buy a house for 100,000 c.u. That is, he must have an additional 10-15 thousand euros for additional expenses. Perhaps the cost will turn out to be less, but it's better to play it safe.

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Where to start?

A lot has been said above about the requirements, conditions, and what interest rates apply to mortgages in Germany. We also need to talk about the first step.

Don't limit yourself to two or three banks. It is highly recommended to visit 10-15 organizations for future savings. The more banking offers a person studies, the higher the probability of finding the most profitable option.

In addition, when communicating with representatives of other institutions, the client may make a reservation that in the previous place he was offered a lower rate. Many banks, not wanting to lose a potential borrower, are starting to get interested in additional bonuses.

You also need to know that the lowest rate is offered if the housing meets the following requirements:

  • Its warranty is 100 years.
  • It is located in a place with good ecology, logistics, and close to the center.
  • It can be takenfor rent.

How to search for real estate? For this, there are real estate firms, specialized online resources, as well as brokers and private ads.

How to open an account?

It has already been noted that payment for real estate can only be made through a bank. And here it is necessary to clarify one nuance. The fact is that through the Russian "Sberbank" this can also be done! That's why there is a cashless payment.

But you still have to open an account in a German bank. Of course, you need to be personally present for this. The so-called "postal legitimation" is only available to German citizens.

From the documents you will need originals and copies of passports (civilian and foreign), completed forms and registration. Some banks ask you to present a reference-recommendation. In Germany, they prefer to deal only with pure capital.

The account will be opened in euros, after that the contract will be signed. Money can be deposited on the same day.

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Conclusion of the contract

This nuance is also worth considering when talking about what kind of mortgage in Germany. When the client and the bank agree on all the conditions, the moment of concluding an agreement comes, which is the basis for issuing a loan in the future.

The legal basis in this case is the German Civil Code, as well as the law on mortgage banks (paragraphs 601-610 and 14-16, 19 respectively).

The contract contains the following information:

  • Loan amount: amount + interest + costs.
  • Mortgage conditions.
  • Information about the required payments (their size, date of commencement of loan repayment, calculation of interest rates, etc.).
  • Methods of paying off debt.
  • Information about the borrower.
  • Conditions under which the contract may be terminated.

In general, there is nothing complicated. Yes, obtaining a mortgage in Germany is a little more complicated and time-consuming process, but this is understandable, because a foreigner purchases real estate. But otherwise, everything is the same as in Russia.

Competently choosing a bank and housing, you can even save a lot. After all, Germany is in the TOP-3 European countries that provide the lowest mortgage rates. And those 3-5% are really small compared to the 10-12% offered in Russia.

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Timing

How long does it take to get a mortgage in Germany? It usually takes 1 month, but sometimes it takes longer.

At the first stage, documents are being prepared, and this takes about two weeks. In parallel, it is recommended to familiarize yourself with the offer market. Then - visit the banks, apply. It takes 2-4 days or more.

How long does it take to get a home loan decision? Up to a maximum of four weeks after the interview with the bank officer. When a person receives approval, he will only have to choose the most advantageous offer, open an account and make a deposit. After that, you can buy real estate.

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