Mortgage Pre-Approval in Germany: A Guide for Expats

Why pre-approval changes the conversation

I have sat across the table from enough sellers to know what they look for in an offer: not just the price, but the certainty behind it. In Berlin’s market, a buyer with mortgage pre-approval is simply taken more seriously than one without. Sellers and their agents remember which offers fell through, and pre-approval is the clearest signal that yours will not be one of them. In a competitive situation, it is often what decides who wins the property.

Pre-approval is not a formality to leave for later. I recommend clients start the process before they view a single flat.

What pre-approval actually means

In Germany, pre-approval takes the form of a financing confirmation (Finanzierungsbestätigung), sometimes issued as a financing certificate (Finanzierungszertifikat). It is a written statement from a bank, or arranged through a broker on a bank’s behalf, confirming that your financial profile supports the loan amount you intend to bid with.

This is different from simply asking your bank what you can afford. A proper pre-approval has been checked against your documents and your income, and it is the piece of paper you hand to an agent alongside your offer. If you want to model the numbers before speaking to any bank, start with the mortgage calculator.

How much equity you will need

This is where I see the most confusion among people relocating to Germany, because the rules differ sharply depending on residency status.

Buyer profile	Typical bank financing	Equity you bring
Resident with stable German income	80–90% of purchase price	10–20%
Non-resident	Lower, case by case	30–40%

There is a second figure that catches almost everyone by surprise: transaction costs. In Berlin these typically run to around 8–10% of the purchase price, and banks will not finance them. That percentage has to come from your own equity, sitting on top of whatever down payment you are making on the property itself. I always ask clients to run both numbers together, not separately — the buying-costs calculator is built for exactly that.

The documents a German bank will ask for

Banks in Germany are thorough, but the list is predictable once you have seen it. For employed applicants, it typically includes:

• Passport or national ID, and residence permit where applicable
• Your last three payslips
• Your employment contract
• A SCHUFA credit report
• Bank statements or other proof of assets

If you are self-employed, expect the bar to be higher: banks generally want two to three years of accounts or tax returns before they will commit to a figure. I tell self-employed clients to gather this early, since it is the step most likely to slow things down.

How long the process takes

With a complete file, pre-approval can come through in a few days. With gaps in the documentation, it can stretch to two weeks. The variable is almost always completeness, not the bank’s speed. This is one more reason to assemble your paperwork before you start viewing, rather than once you have found a property you want to move on quickly.

Understanding the loan you are offered

Once you move from pre-approval to an actual offer, it helps to know the shape German mortgages take. Interest rates are usually fixed for a period of ten to twenty years, which gives long-term predictability that some expats are not used to from their home markets. Initial repayment (Tilgung) is commonly set between 1% and 3% of the loan, and the whole thing is structured as an annuity, meaning your monthly payment stays constant while the balance of interest and principal within it shifts over time.

None of this is intuitive on a first pass, particularly for buyers coming from countries with variable-rate norms. It is worth understanding the mechanics before you compare offers, rather than after.

Why I send clients to independent brokers

I do not arrange financing myself, but I work alongside independent mortgage brokers because they compare offers across dozens of banks rather than presenting the one product their employer sells. For the buyer, this service is usually free, since the broker is paid by the bank once the loan is placed. There is no reason to walk into a single branch and accept the first number you are given.

If any of this raises questions specific to your situation, the FAQ covers many of the recurring ones, from residency requirements to how brokers are compensated.

Where this fits in your search

Pre-approval is not the end of the process — it is the beginning of being able to move on a property with confidence. If you would like to talk through your own financing position before you start viewing, a consultation is a good place to begin, and the fee for that first hour is credited in full toward the buyer-representation engagement should you go ahead.