German Mortgage

Can I get a mortgage in Germany with an EU Blue Card?

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

Understanding the EU blue card

First, it’s important to understand what the Blue Card is. To qualify for an EU Blue Card, you will must:

  • have a Master’s degree or equivalent.
  • have at least 5 years of professional experience in your field.
  • have an employment contract or job offer for highly skilled employment for at least one year.
  • meet the minimum salary threshold in the EU country in which you want to work.

In Germany, the annual salary is €56,800 (as of 2021) to obtain a residence permit for skilled workers. For popular fields, such as (mathematicians, engineers, natural scientists, technicians, and physicians), it is €44,304. 

Once approved, the blue card is valid for up to four years. The period of validity depends on the duration of the employment contract. In some cases, the work contract may be shorter than four years. 

After 33 months, blue card holders can apply for an unlimited settlement permit (Niederlassungserlaubnis). If they have German language skills on level B1, they can apply for a permanent residence title after only 21 months (see § 19a Abs. 6 AufenthaltsGesetz). 

How to get a mortgage with the EU blue card in Germany

Often EU Blue Card holders are 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 must meet certain requirements.

Those that do grant a loan have clear requirements, such as: 

  • Proof of a solid income: if you are a Blue Card holder, you can already prove this by definition. 
  • Equity for closing costs: these fees can be to up to 12% of the property purchase price. 
  • Equity for the down payment: some banks require you to put down about 30% to 40% equity. However, the minimum amount of equity is equal to the purchase cost (notary fee, broker fee, property tax) plus 10% of the property value. 
  • A maximum limit for borrowing: you can borrow a maximum of 100 times your monthly net income. Income in currencies other than Euros is not taken into account in the calculation. 

The good news is that if you meet all the above requirements, you can get as good mortgage rates as full-fledged German citizens. For example, if you have a EU Blue Card and want to buy an apartment in Berlin for 500,000€, you will need at least 90,000 € as a down payment to cover the closing costs, plus the 10 % down payment. 

 

Sources:  

https://visaguide.world/europe/eu-blue-card/ 

https://www.bluecard-eu.de/blaue-karte-eu-deutschland.html 

 

 

If you want to find out right away how much house you can afford in Germany, you can use this mortgage calculator. 

Any questions? Please do not hesitate to contact us. By e-mail to service@loanlink24.com or by phone 0800 05 28000. You can also start the mortgage application with LoanLink24 using the button below: 

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