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02Service 02 of 04, financingMortgage financing for expats buying investment property in Germany
Financing is part of the LDP investment service: we prepare your file and coordinate the purchase, while FM Zinswerk, an independent broker licensed under § 34i GewO, advises on and brokers the loan across 400+ banks by its own account, typically to approval within four weeks. You pay no extra fee for this; our in-house brokerage licence is in preparation.
Figures from LDP Group client cases and from the broker FM Zinswerk. Residents of Germany and the EU only.
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What LDP does for your financing
Financing is not a separate product at LDP. It is one step in the same process that sources the property, structures the tax side and hands the flat to rental management afterwards. That matters for the bank: a lender sees a complete file, with the purchase price, the renovation budget, the expected rent and the equity in one place, instead of a loan request without context.
Income documents, equity proof, SCHUFA or its equivalent, the property exposé and the renovation plan where there is one.
LDP is preparing its own brokerage licence under section 34i of the German Trade Regulation (GewO). Once it is granted, the same process runs in-house. Until then, FM Zinswerk is the licensed broker on every case and you deal with one contact at LDP throughout.
Who a German bank will finance, and on what terms
Where you live matters more to a German bank than which passport you hold. Residents of Germany are financed like any German buyer once income and equity fit. EU residents outside Germany are financeable through a narrower set of banks. Non-residents outside the EU are the case we do not take on: the number of willing lenders is too small and the conditions too poor to recommend it.
| Situation | Typical loan-to-value |
|---|---|
| Living in Germany, income in euros | 80 to 90 percent of the purchase price is the standard band, so 10 to 20 percent equity plus purchase costs. With a strong income profile banks finance up to 100 percent of the price |
| Living in Germany, income partly outside Germany or in another currency | Case by case, usually below the resident figure; some banks discount non-euro income, by 10 to 25 percent and 50 percent at full financing in one published broker policy |
| Living in another EU country | 50 to 60 percent, so 40 to 50 percent equity plus purchase costs |
| Living outside the EU | Not offered by LDP |
What to expect, based on LDP Group client cases. Source: LDP Group, as of October 2026
Purchase costs come on top of the equity: property transfer tax of 3.5 to 6.5 percent depending on the federal state, plus roughly 2 percent for notary and land registry. For a standard profile banks do not finance these costs; the one LDP Group client case where a bank did is in the next section. Current ten-year rates are on our German mortgage rates page, updated from the rate table we use in our own calculations.
Illustrative example, not an offer: 80 percent is the lower end of the standard band for residents of Germany, 55 percent the middle of the band for EU residents. Purchase costs here: 3.5 percent property transfer tax (Bavaria) plus about 2 percent notary and land registry; 3.5 to 6.5 percent by federal state. Equity and purchase costs come from your own funds, the loan covers the rest of the price.
Can an expat living in Germany get 100 percent financing for an investment property?
Yes, for some profiles. Three LDP Group client cases published on our client cases page were financed at 100 percent of the purchase price or more. In each of them LDP Group prepared the financing file and coordinated the purchase, FM Zinswerk, the broker licensed under § 34i GewO, advised on and brokered the loan, and the bank made the credit decision.
| LDP Group client case | Purchase price | Financed by the bank | Cold rent per month, before and after |
|---|---|---|---|
| Munich, four-room co-living conversion, investor based in Frankfurt | 625,000 EUR | 100 percent of the purchase price | 1,350 EUR, then 2,900 EUR |
| Munich, three-room co-living conversion, first-time investor | 600,000 EUR | 100 percent of the purchase price | 1,120 EUR, then 2,475 EUR |
| Nuremberg, three-room co-living conversion | 314,000 EUR | 105.5 percent, so the purchase costs were covered as well | 800 EUR, then 1,230 EUR |
LDP Group client cases financed at 100 percent or more. Source: LDP Group, published client cases, as of October 2026
These three are the exception, not the rule. The standard band for a resident of Germany is 80 to 90 percent. A bank finances the full price only on a strong income profile and a clean file, and financing above 100 percent, as in the Nuremberg case, is only possible for residents with German income. A loan without equity also means a higher monthly payment, and banks usually price a higher loan-to-value with a higher interest rate, so the rent has to carry more.
Whether your case qualifies is the bank's decision, on the advice of FM Zinswerk. LDP Group does not promise a loan-to-value. What LDP Group contributes is a file in which the purchase price, the renovation budget, the expected rent and the tax effect are documented in one place, which is what a lender needs before it considers financing the full price.
Timeline
Initial screening call, financing file assembled, first indication from the broker.
Bank offers compared, one lender chosen, application submitted.
Bank approval, loan contract signed, notary appointment scheduled.
Payout against the purchase contract, coordinated with the seller.
Four weeks from the first call to bank approval is the usual run. It gets longer when income documents come from several countries or when the property needs a valuation before the bank decides.
Financing at a glance
What is not included
- Purchases by buyers who live outside the EU: the banks our broker partner FM Zinswerk works with do not finance this group, and LDP does not take on these purchases.
- Loans for new-build developments; LDP works with existing buildings only.
- Owner-occupied home loans without an investment case; our process is built around rental property.
- Legal or tax advice. Both come from our partner firms, see the tax and structuring page.
Frequently asked questions
Can I get a German mortgage as an expat with a work permit but no permanent residence?
Yes, in most cases. Banks look at the remaining term of your contract and permit, your income and your equity. A permit with more than one year left and a permanent employment contract is usually enough for a resident-style loan; a shorter permit narrows the lender list but does not close it.
Can an expat living in Germany get 100 percent financing for an investment property, and who handles it?
Yes, with a strong income profile and a clean file. Three published LDP Group client cases were financed at 100 percent of the purchase price or more: two Munich flats bought for 625,000 and 600,000 EUR, and a Nuremberg flat bought for 314,000 EUR and financed at 105.5 percent. LDP Group prepares the file and coordinates the purchase, FM Zinswerk, licensed under § 34i GewO, advises on and brokers the loan, and the bank decides. The standard band for residents is 80 to 90 percent.
Does LDP charge for the mortgage?
No. Financing coordination is part of the LDP investment service and the broker is paid by the bank that issues the loan. You pay the bank its interest and the notary and land registry their fees, nothing to LDP or FM Zinswerk for the brokerage itself.
I live in Spain and want to buy a flat in Berlin. Is that possible?
Yes. EU residents outside Germany are financed by a narrower set of banks at 50 to 60 percent loan-to-value, so you need 40 to 50 percent of the price plus purchase costs in equity. The notary appointment can be handled by power of attorney if you cannot travel.
My salary is paid in US dollars. Does that block a German loan?
Not if you live in Germany or the EU. Some banks discount income in a non-euro currency when they calculate affordability, by 10 to 25 percent and 50 percent at full financing in one published broker policy, which lowers the loan amount rather than the chance of approval. FM Zinswerk knows which lenders apply the discount and which do not.
Why does LDP work with a broker instead of one bank?
Because the right bank depends on your case. A resident with euro income, an EU resident with foreign income and a buyer with a short SCHUFA history each get their best terms from different lenders. FM Zinswerk compares more than 400 of them, according to its own website, and the comparison costs you nothing.