German Mortgage: what options are there?


Mortgage interest rates are much lower in Germany than in the Netherlands. It is then very attractive for Dutch homeowners to look at the possibilities of the German mortgage. At the time of writing, the mortgage interest in the Netherlands for 10 years is fixed at around 3.5 to 5%. With a mortgage in Germany we already go to mortgage rates of around 2% for about the same type of mortgage. See for the scoop

Mortgage with German bank

Mortgage with German bank

People around the German border have much more benefits than people who live in the Randstad. The German banks sometimes make an exception if you live around the border with Germany, because they then have more insight into the person in question. Especially in Limburg and Overijssel there are many homes that already use a German mortgage. The mortgage lenders in Germany also have to view the house themselves because a valuation report does not always meet the requirements of Germans.

Mortgage Germany, disadvantages?

Mortgage Germany, disadvantages?

A German mortgage does not only have advantages compared to taking out a mortgage in the Netherlands. What can you encounter when you want to take out a mortgage in Germany?

– Own contribution of money. The German mortgage lenders do not provide the full 100% of the home value. In the Netherlands, up to 104% of the home value of the house in the Netherlands is financed. In Germany this is often no more than 70% of the value of the house.

– German law. A mortgage in Germany is different than in the Netherlands. German legislation is different than in the Netherlands, so Dutch people who take out a mortgage in Germany have to deal with different rules.

– On the way to Germany. You are required to travel to Germany once to put the definitive signature for a mortgage in Germany for a Dutch home.

– NHG. The German mortgage lenders who provide a mortgage to Dutch homeowners do not have a National Mortgage Guarantee, because they take out a mortgage from Germany. That is why German banks do not just provide a mortgage to Dutch homeowners.

– Interest deduction. The conditions for interest deduction in Germany are different than in the Netherlands. Many Dutch homeowners are confronted with this if they want to take out a mortgage in Germany.

Calculating Mortgage in Germany

The websites of the German mortgage lenders often show how much someone can ‘borrow’ from the bank for his or her mortgage. For the mortgage lenders in Germany it makes a difference whether you build a new house or already enter an existing one. The income of the mortgage customers and the house value of the house are also important for the Germans. With a maximum mortgage calculator you can often see how much someone can borrow from a German bank. These calculators can sometimes be seen on the websites of mortgage providers in Germany.

Loan capacity much lower

In the Netherlands you have the option to take out a mortgage up to 104% of the home value. However, this is not the case in Germany. At German banks, homeowners often receive no more than 70% of the home value. That is a big reason why Dutch people often drop out when taking out a German mortgage. Starters on the housing market therefore have only a small chance of being eligible for a mortgage in Germany, because you also have to have a share of the money.

Why go for a German Mortgage anyway?!

We have listed a number of points here to nevertheless opt for a German mortgage.

– Many lower mortgage rates. On an annual basis this saves you many euros that you might use to support your children. This can often amount to thousands of euros per year. The mortgage interest in Germany is often 1 to 3% lower than in the Netherlands!

– Reliable. The German economy has never been very wrong and is comparable to that of the Dutch. It is therefore not a gamble or something in that trend. The Germans often have the financial picture in order.

– Retain tax benefit. Just like in the Netherlands, you retain the tax benefit. This should therefore not be an obstacle to opting for a German mortgage!

German mortgage providers in the Netherlands

German mortgage providers in the Netherlands

In the Netherlands there are a number of providers of the Germany Mortgage, also known as the German Mortgage. These German mortgage providers are mainly located around the border with Germany. There are also several banks (mainly the Volksbanken from Germany) in Germany that want to finance Dutch homes. As stated above, a number of conditions are attached to this. For example, it is often difficult to get the entire home loan from a German bank, unlike in the Netherlands.

In this article you could read about the disadvantages and benefits of a German mortgage. We hope to have provided you with sufficient information about a mortgage in Germany. On this website you can read more about different types of mortgages.

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