Baufinanzierung (German mortgages) are available to foreigners with no blanket restriction, but terms depend heavily on residency status: EU citizens living and working in Germany generally borrow on the same basis as German nationals (80-90% loan-to-value for residents with permanent permits), while non-EU citizens or those with temporary residence permits typically face stricter limits (50-60% LTV) requiring 30-40% equity contribution, unless they hold permanent residence. As of March 2026, 10-year fixed Baufinanzierung rates are around 3.28% (Dr. Klein data).
No blanket restriction on foreigners obtaining a German mortgage, but terms vary significantly by residency/citizenship status.
EU citizens living/working in Germany: generally same terms as nationals, 80-90% LTV possible with permanent permits.
Non-EU citizens or temporary residence permit holders: typically limited to 50-60% LTV, requiring 30-40% equity contribution.
10-year fixed Baufinanzierung rates as of March 2026: ~3.28% (Dr. Klein data).
Required Documents
Proof of income/employment
Proof of assets/equity contribution
Residence permit status documentation
Common Mistakes
Assuming non-EU/non-resident buyers can access the same 80-90% LTV available to resident nationals — expect materially larger down payment requirements (30-40% equity) without permanent residence.