German Mortgages Explained
How can I increase what I can borrow?
If you are worried that your savings may not cover all of the purchasing costs when buying a property, you can explore several options to increase your borrowing ability. The first and most traditional method is to borrow money from your parents or other family. While interest rates are low and purchasing maybe attractive, the transactions costs are very high in Germany. Therefore you want to buy the right size house and not move say after you have children. So sometimes it may make sense to borrow additionally from your parents to help you buy the right size house.
The second most common way is to find a commission-free property, such as a newly built property, this will increase your maximum loan in some cases by as much as 50% or more.
Finally, the last traditional method is to wait and save - you can do so by opening a savings account and systematically depositing monthly payments there. When house prices increase rapidly, this may not work well for you.
For more questions, please reach out to one of our advisors, after you have checked your affordability.