How do I borrow money from German Banks!

2 Replies

Hello All, 

So here is a difficult question,  How do Americans borrow money from German Banks?  Usually Mortgage lending is closely tied to National Government bonds.  Well the German bund(bond) is at never before seen levels because of the flight to safety in the entire Eurozone.   

So how do we take advantage of that?    

@Peter Grosso  

Peter, I have no specific experience with german banks but having bought property internationally before I have to assume that a german bank would likely only give you a mortgage for property in Germany or the euro zone. I highly doubt you would be able to lend money from them (other than maybe a personal loan if you have a relationship with them) for property you bought in the US for example.

For example, my US bank would not (I did ask them) loan me money to purchase a property internationally (how would they verify the property, appraise it, do their due diligence, etc). Under certain conditions, they were willing to loan me money on a personal loan but the interest rates were personal loan rates. But even for a personal loan, they wanted me to provide extensive information about the asset I was buying.

@Peter Grosso Hi Peter, This is a few years late and a few euros short, but I am an American living and working in Germany. I borrowed from a local mortgage broker. The process was similar to what I would expect to follow in the states. The structure of the loan was different, though. A very comkon loan stricture is called a bausparvertrag. I was basically prequalified in advance of finding a place to buy by the broker and then provided all the necessary information to the broker for the specific bank chosen after I found a place. Most banks will still require a downpayment of 20% or more. The biggest hurdle is then being able to pay out of pocket for the high additional costs called nebenkosten. It was over 14% in my city and most banks won’t allow an American to finance these. My suggestion is to find a mortgage broker that does business near a location where a lot of Americans live.

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