Property Guide · Financing · Germany
Getting a mortgage in Germany as an Indian expat is absolutely possible — but the way German banks assess your application often looks nothing like what you would expect. The gap between your gross salary and what a bank will actually lend you can be surprisingly wide.
Here is how German lenders really evaluate Indian expat applications, what they quietly ignore, and how to walk into that first meeting prepared rather than surprised.
German mortgages are conservative by design. The standard product is an Annuitätendarlehen — a fixed monthly payment combining interest and repayment, locked in for a fixed period (Zinsbindung) of usually 5, 10, or 15 years. After that, you renegotiate the rate. Ten-year fixes are the most popular, partly because German law (§489 BGB) lets you exit any fixed rate after ten years with six months' notice, at no penalty.
These are indicative rates and they move — your actual rate depends on your deposit, income stability, and Schufa. But they give you a realistic starting point, well above the sub-1% rates of 2021 but stabilised.
Banks work from your net monthly income — what lands in your account after tax and social contributions. Your total monthly obligations should stay within roughly 35–40% of that. Simple enough. The problem for Indian expats is what gets left out of the calculation:
A realistic example: An Indian tech professional earning €120,000 base with a €30,000 bonus may find the bank assessing only the base salary — roughly €5,500–6,000 net per month. The bonus that feels like a core part of the package can count for nothing. This is why the borrowing figure often lands well below expectations.
This is the factor that catches Indian expats off guard. German banks lend differently depending on your legal right to stay:
Banks want to see an unbefristet (permanent, open-ended) contract. A fixed-term contract — normal in tech, consulting, and project roles — narrows your options considerably. And if you are still in your probation period (Probezeit), which is usually six months, almost no bank will lend until it ends. Timing your application matters.
Schufa is Germany's main credit agency. Your score is built from your German credit history — loans, credit cards, phone contracts, payment behaviour. If you have been here only two or three years, that history is thin, even if your Indian credit record is spotless.
A thin Schufa is not the same as a bad one. Banks understand recent arrivals have limited history. What actually hurts you is a negative entry — a missed payment, a default, a court judgement. Get your free Schufa report at meineschufa.de before you apply, and fix any errors you find.
The standard is a 20% deposit on the purchase price, plus the full closing costs (8–12% in Berlin) in cash — because German banks do not finance closing costs. On a €400,000 flat, that is roughly €110,000–125,000 in savings before a bank engages. A larger deposit of 25–30% both improves your options and lowers your rate.
Missing or badly formatted documents are one of the most common causes of delay. Banks expect:
Format really does matter. Banks want official PDFs — payslips straight from your employer's system, bank statements downloaded from online banking, not printed and re-scanned. Messy documents slow everything down and create the wrong impression.
For Indian expats, an independent mortgage broker (Finanzierungsvermittler) is worth it. A good one knows which lenders are open to non-EU applicants, which are flexible on variable income, and which to avoid. They submit to multiple banks at once and manage the process. Crucially, brokers are paid by the lender — their service is free to you. Just choose one with real expat experience who communicates clearly in English. Names that repeatedly come up for expat clients include Hypofriend, Interhyp, and Dr. Klein.
Our Saathi service includes a mortgage readiness review — we assess your profile the way a German bank will, get your documents right, and introduce you to brokers who understand Indian expat cases.
Talk to us →Can I get a mortgage in Germany as an Indian expat?
Yes, but German banks assess your application based on factors like visa status, contract type, and net base income. Permanent residence or an EU Blue Card gives the strongest position. Non-residents without German income face stricter terms, often capped at 60% loan-to-value versus up to 90% for residents.
Do German banks count my bonus and RSUs for a mortgage?
Usually not. German banks typically assess your net base salary. Bonuses are often excluded or counted at only 50% with a documented two-year average, and RSUs or stock compensation are generally excluded entirely as uncertain income. Income from India is also not counted.
What mortgage deposit do I need in Germany?
The standard is a 20% deposit on the purchase price plus the full closing costs (around 8–12% in Berlin) in cash, because German banks do not finance closing costs. On a €400,000 property that means roughly €110,000–125,000 in savings. A larger deposit improves your rate and options.
Does my Schufa score matter if I just moved to Germany?
A thin Schufa from being new to Germany is not the same as a bad one, and banks understand recent arrivals have limited history. What hurts is a negative entry such as a missed payment or default. Check your free Schufa report at meineschufa.de before applying and correct any errors.
What are current mortgage rates in Germany?
As of September 2026, indicative fixed rates are around 4.15% for 5 years, 4.14% for 10 years, and 4.34% for 15 years. Your actual rate depends on your deposit, income stability, and Schufa. Rates have stabilised well above the sub-1% levels of 2021.
This article is general information for Indian expats navigating the German property market, not legal, tax, or financial advice. Property law, tax rates, and mortgage conditions change and vary by individual circumstance. For decisions specific to your situation, consult a qualified notary, tax advisor (Steuerberater), or mortgage broker. Figures are current as of September 2026.