Many people think about buying a home abroad. Someone might think that this is unrealistic, because abroad the prices for apartments and houses 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, it should be considered in more detail, as well as to study in detail the process of registering a home loan.
About the real estate market
Before talking about a mortgage in Germany, it is necessary to make a reservation that the demand for housing in this country exceeds the supply. It is very difficult to find new buildings in finished facilities. But there are a lot of proposals to buy an apartment in buildings that are just starting to be built.
What about prices? There are both high and low. One thing is certain: prices are rising in the direction from east to west. The most expensive housing in the capital of Bavaria - Munich. There 1 m 2 costs from 4000 euros. In Berlin, much cheaper - 2500 euros.
In any case, even if a person wants a one-room apartment or studio, a substantial amount of about 150-200 thousand euros will be required. Fortunately, German banks offer mortgages to both their citizens and residents of other countries. You can take both the full amount for the acquisition, 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%.
Buying a home for rent
Many people apply for a mortgage for this 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. Rented housing in Wuppertal will bring 8%, in Gelsenkirchen - almost 10%. High returns can be in Dortmund, Duisburg, Essen.
It is worth giving an example. Let's say a person bought a house for 8 apartments in Dortmund, giving 620,000 cu for it One apartment will bring him approximately 6,500 euros per year. And all together - about 52,000 cu Thus, the profitability will be 8%. That is, a mortgage will not only pay off, but also bring profit.
Features of the conditions
If you want to take an apartment in Germany for a mortgage, then it is better to look for options that cost more than 100,000 euros. At the current rate, this is a little more than 8,000,000 rubles. For this money, a person will receive not a box, but a spacious housing with decoration.
Why is it better to watch expensive options? Because banks are more willing to meet such foreign customers.
If we talk about conditions, then they have features individually for each person. When drafting the contract, many factors are taken into account, among which:
- Down payment amount.
- Solvency.
- Credit history.
- Location of the property and its condition.
The first mortgage is more difficult to get than the second or third, which not everyone plans to take. When making a debut home loan, you may need to pay 40-50% of the total value of the property.
This is both a plus and a minus. On the one hand, there will be less debts, and therefore, they will be able to repay faster. But on the other - not everyone can save up and give 4-5 million rubles at once.
But many banks agree to increase the amount, while lowering the interest rate. By the way, if then a citizen decides to apply for a second mortgage, then, in the absence of problems with the first, he will not even need to make a contribution. Or it will be no more than 20% of the cost of housing.
Customer requirements
If you have plans to apply for a mortgage in Germany, you need to know what it will take. The following requirements are imposed on customers:
- You must have a bank account in Germany for at least 2 years. It is important that it is not empty. It should receive regular funds.
- Age must be between 21 and 65 years old.
- You must have proof of income in Germany. Employees need to submit an extract for the last 6 months, and entrepreneurs - for 2 years. But this refers not only to work. The source of income is the activity of the lessor.
- You must provide evidence of the presence or absence of loans or child support. According to German law, a person must not spend more than 35% of monthly income on paying off mortgages.
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 its copy.
- Profile with personal data.
- Foreign passport and its copy.
- Proof of income: for an individual - personal income tax certificate. For an entrepreneur, reporting to 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 should be made a maximum of 6 weeks ago).
- The results of the assessment of the cost of housing.
- A rental agreement is needed if housing is rented out.
- Confirmation of the availability of the amount required for down payment.
Be sure to translate all documents into German and certify them with a notary.
What is a profile?
In fact, this is an analogue of the form, which is usually filled in Russian banks. The application form with the personal data of the applicant is a document containing brief information about the person planning 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 less financial problems a client has, the cleaner the credit history, the higher the likelihood that they will approve 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 - the exchange rate will not affect it in any way.
Redeem a mortgage in Germany with annuity monthly payments: every 30 days the client must deposit the same amount into the account. It includes both interest on a mortgage in Germany and the amount of the main loan.
They say that it is realistic to individually agree on the possibility of repaying a loan ahead of schedule. But for the bank this is not very convenient, 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 immediately think about it and take out a loan with the ability to pay off your main debt accelerated. Convenient solution: in 1 year you can pay off about 10% of the loan.
Example
So, let's say a person decided to take a mortgage in Germany to buy a studio in the center of Munich with an area of 39 m2 with a European-style renovation. Its cost is 290,000 euros. This is approximately 23 million rubles.
The down payment is 9,200,000 rubles. Of course, a person will need 13.8 million loans, which is 171 735 euros. A German bank will provide such an amount, because their minimum is 50,000. e.
Mortgages in Germany can be issued for a period of 5 to 40 years. But, as a rule, everyone charges at 10. Suppose, for a client, they set an interest rate of 4%. Here is what happens in rubles in this case:
- Monthly installment: 46 016.
- Interest for one year: 552,000.
- All payments at the end of the loan period: 19 322 000.
- Overpayment for all 10 years: 5 520 000.
It is important to make a reservation that until the person pays the debts at the interest rate on mortgages in Germany, housing will be the property of the bank.
Costs
Their existence must also be remembered. Talking about the interest rates of mortgages in Germany, it is necessary to tell about the costs. There are a lot of additional costs when purchasing a home, among them:
- Property tax. The rate varies depending on the location of the housing. Usually it is from 3.5% to 6%.
- Payment of housing re-registration services to a new owner. This will be 0.5-1% of the total transaction amount.
- Fee for a notary (1.5-3%).
- Commission to intermediaries (3-6%). Without brokers and realtors, transactions in Germany are not concluded. Especially with foreigners. In addition, they do the main work and greatly facilitate the life of the client.
- Payment for the service of including a new owner in the cadastre (0.5%).
- Commission charged for mortgages in Germany for Russians and other foreigners (1%).
- Payment of the valuation of the object, which will be paid as collateral (about 1,500 cu).
- Real estate audit (0.5-1.5%).
- Issuing certificates and statements, maintaining a bank account (up to 150 cu annually).
In total, if a person plans to buy housing for 100,000. e., then he must have an additional 10-15 thousand euros for additional costs. Perhaps the cost will be a smaller amount, but it is better to be safe.
Where to begin?
Much has been said above about the requirements, conditions, and what interest rates apply to mortgages in Germany. You must also talk about the first step.
Do not be limited to two or three banks. It is highly recommended that you 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, communicating with representatives of other institutions, the client may make a reservation that in the previous place he was offered a lower rate. In many banks, not wanting to lose a potential borrower, they begin to interest 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 also near the center.
- It can be rented out.
How to search for real estate? To do this, there are real estate companies, 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 we need to clarify one nuance. The fact is that through the Russian Sberbank this can also be done! For this, there is a bank transfer.
But in a German bank you still have to open an account. Of course, you need to be present in person for this. The so-called "postal legitimation" is available only to German citizens.
The documents will require originals and copies of passports (civil and foreign), completed forms and registration. Some banks ask for a reference recommendation. In Germany, they prefer to deal only with net capital.
The account will be opened in euros, after which they conclude an agreement. Money can be paid on the same day.
Conclusion of an agreement
This nuance is also worth considering, talking about what kind of mortgage in Germany. When the client and the bank agree on all the conditions, the time comes for the conclusion of the contract, which is the basis for the 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 agreement contains the following information:
- Amount of the provided loan: amount + interest + costs.
- Mortgage terms.
- Information on the required payments (their size, date of commencement of repayment of the loan, calculation of interest shares, etc.).
- Methods of debt repayment.
- 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 bit more complicated and time-consuming process, but this is understandable, because a foreigner acquires real estate. But the rest is the same as in Russia.
Properly choosing a bank and housing, you can even save significantly. After all, Germany is in the TOP-3 of European countries that provide the lowest mortgage rates. And those 3-5% are really small in comparison with the 10-12% offered in Russia.
The timing
How many mortgages are made in Germany? This usually takes 1 month, but sometimes it takes more time.
At the first stage, documents are prepared, and this takes about two weeks. At the same time, it is recommended to familiarize yourself with the offer market. Then - visit banks, apply. It takes 2-4 days or more.
How long to wait for a housing loan decision? Up to a maximum of four weeks after interviewing a bank employee. When a person receives approval, he can only choose the best offer, open an account and make a deposit. After that, you can purchase real estate.