German Mortgage

Can I get a mortgage in Germany with a blue card?

Many highly educated non-German residents enter the country with a blue card. What should you know about getting a mortgage in Germany with a blue card?

Understanding the blue card

First, it’s important to understand what the blue card means. To qualify for a blue card, you will need to show:

  • A university or college degree
  • A contract for employment with a German company
  • A minimum salary of €50,800 per year (as of 2017), or €39,624 per year for fields with skilled labor shortages.

Once you receive approval, the blue card is valid for up to four years. The validity depends on the length of the work contract. In some cases, the work contract may be shorter than four years.

After three years, blue card holders can apply for an unlimited residence permit (Aufenthaltstitel). However, language skills help. The blue card holder can apply after only two years if he or she has at least a Level B1 in German.

How to get a mortgage in Germany with a blue card

Often a blue card holder is confused about whether or not they can apply for a mortgage in Germany. The answer is yes, you can get a mortgage in Germany with a blue card. However, you do have to meet certain requirements.

With that said, only a few German banks lend to blue card holders. Those who do lend have clear requirements, such as:

  • Proof of solid income: if you are a blue card holder, you by definition can already demonstrate this.
  • Equity for purchase cost fees: these fees can amount to up to 15% of the property purchase cost.
  • Equity for a downpayment: some banks will require you to put down around 40%-50% in equity. However, the minimum equity amount is the purchase cost (notary fee, real estate agent tax, real estate tax)
  • A maximum on borrowing: the maximum that you can borrow is 100 x your monthly net income. Any income in currencies other than Euro does not enter into the calculation.

The good news is that if you meet all the requirements above, you can get just as good mortgage rates as full-fledged German residents.

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