Financing Certificate: Always one step ahead

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Julia Ptock

May 10, 2021
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If you want to buy a property in Germany, you’ll need to know that you will likely not be the only one interested. Competition is particularly fierce in major cities like Berlin, Hamburg, and Munich. No wonder: Rising prices and the desire of many people to own their own home are making the situation particularly difficult. Low interest rates mean demand is increasing, but the supply is growing slowly.

So what can you do to stand out from the other applicants in the eyes of the real estate broker or seller? A financing certificate is a solution because it provides the seller with direct proof that you can afford a given property. 

Below we explain what a financing certificate is, how to get it and what to look out for. 

What is a financing certificate? 

Owners or developers who want to sell their property attach great importance to security. They want to be sure that the prospective buyer - you - can afford the property. With a financing certificate, you provide exactly this proof and increase your chances of winning the bid for your dream apartment.  

A financing certificate is usually dependent on the property but is non-binding. It is issued after a preliminary and non-binding assessment of your financial situation by your financing advisor. 

Muster Hypofriend financing certificate

Meet with an advisor to get your free Hypofriend financing certificate.

Attention: Danger of confusion

Various terms are used to refer to the financing certificate. The terms "Finanzierungsnachweis", “Finanzierungsbestätigung”, "weiche Finanzierungszusage" or "Banknachweis" are also frequently used. 

The term "Finanzierungszusage”, in particular, can lead to confusion. Because while you don't need to have found a property yet for a financing certificate, a financing commitment issued by the bank is based on the property that is to be purchased.  

Can Hypofriend issue a financing certificate?  

Of course! As an independent mortgage advisor, we can quickly provide you with proof of your eligibility to finance a property free of charge. 

Your way to the Hypofriend financing certificate:

  1. Calculate how much house you can afford with our Affordability Calculator.

  2. Discuss your wishes and ideas in a video call with your financing expert. We'll also confirm your financing potential.

  3. Find your dream home thanks to our online property radar. 

  4. Get your free Hypofriend financing certificate

  5. Convince the broker and seller at the viewing and secure your advantage over the other prospective buyers.

You can have a look at a template of our financing certificate here.

Why should I get a financing certificate?

The answer is quite clear: To give you an advantage. 

As already mentioned, the housing market in Germany - and especially in large cities and metropolitan areas - is highly competitive. It's not uncommon to find more than ten potential buyers for a good-sized apartment in Berlin at a moderate price. 

With a financing certificate, you stand out from the other interested parties and show the seller or agent that you can afford the property and are eligible for financing. In addition, the certificate proves your interest in buying and shows that you have prepared yourself well. That's a plus in any case. 

What information do I need to provide?

Typically, you will need to provide some personal information such as your name and address and information about your income and savings. This will then determine your possible financing amount. Furthermore, the real estate property data, including the complete address, is often requested. 

You don't have to worry about SCHUFA and your credit score. The SCHUFA is not requested for the financing certificate. There is also no entry. A SCHUFA request is only made when it comes to the mortgage and you give your written consent.

It does not always have to be a financing certificate

The financing certificate is one way to prove that your financial situation allows the purchase of the property. But there are other alternatives.

If you are in the lucky position of being able to pay for your dream home with your savings, all you have to do is present the seller with a corresponding bank or account statement. However, since very few people find themselves in that position, the purchase of a house is usually carried out with a mortgage.

The classic proof of sufficient financial strength is a written financing commitment from a bank. In the letter, the bank confirms that it is prepared to grant you a real estate loan. What sounds good in itself may also have its pitfalls: For one, not every bank issues such a commitment, and for another, it often takes quite a long time for the bank to review the documents.

A financing certificate issued by us is a quick and easy way to prove your eligibility. Calculate your affordability and find out how much house you can afford. Our financing experts will be happy to help you! 

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Julia Ptock

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Use Hypofriend's affordability calculator to see what you can afford based on your personal situation.