“I don’t have German citizenship and plan to live in Germany in the long term. That’s why I would like to buy a property. Is that possible?”
This or something similar is how many conversations with prospective financiers begin. Indeed, the issue of residence status is a central topic at credit institutions, and often these customers get the answer from their (house) banks that you are not eligible for financing. ☹
The background to this is that, according to the requirements of the Federal Financial Supervisory Authority (BaFin), credit institutions have to guarantee the long-term nature of the income in their household accounts when providing construction financing. Many banks see a problem precisely here. In addition, they also have to fulfil extended proof and reporting obligations in the case of special residence titles.
In short: For the bank, it is only possible to provide construction financing for borrowers with a status = non-EU citizen with considerable additional effort.
A clean SCHUFA, a long-term positive household account and solid collateral are required:
Who gets a loan without further ado with regard to residence status and where are there challenges: –> All EU nationals
For non-EU citizens, it now depends on the residence status. There are 3 groups that can be distinguished:
Settlement Permit, Permit for Permanent Residence-EU:
These residence titles are unlimited and equal to an EU citizen. All banks can finance them without any problems and without any special restrictions.
Residence permit, visa:
By definition, these residence titles are limited in time and therefore cannot be financed by banks. There are very few exceptions throughout Germany where banks also offer a financing solution here!
Blue card holders also have a temporary residence permit, but they have a special status with some banks, as the bar for obtaining a blue card is set comparatively high by the legislator. Only academics with a corresponding proven income are granted Blue Card status.
There are some banks that can offer a financing solution, but usually subject to a higher equity ratio. 100% financing is excluded here.
Have you ever wondered whether you could get a loan?