Financing with residence abroad

Hi everyone,

we are currently in the process of buying a plot of land (with equity) and planning the financing of the new construction. We are German citizens, married (since 11.8), have one child, and the plot of land is located in Germany (67435). Our current residence is in Switzerland.

The original plan was to buy the land, plan the construction, clarify the financing, and move to Germany at the start of construction. We have a confirmation from our employers that we will continue to be employed after the move, I through the German subsidiary and my fiancée still with the Swiss employer. Our work will suddenly be worth about 40% less, but that is another matter. Sufficient equity is available and we will also earn well in Germany.

In a conversation with an advisor from Interhyp, the issue came up that our original plan probably won’t quite work out. Many banks would like to see at least 3 months of income statements from a German employer. This means we would need to move into a temporary apartment in Germany much earlier than we had planned. That is feasible but of course means a considerable additional effort with simultaneous financial losses (currently we can save more per month than we will earn net in Germany overall).

Has anyone of you had experience with this issue? How would you handle the situation?

Look for another bank: You bought the building plot with equity - and that is not exactly cheap on Weinstrasse. This part should actually guarantee it - the bank will have virtually zero risk there. In case you cannot pay the installments, the bank will not incur any loss. I am convinced that someone will finance you. Just tell them your plan.

The topic of cross-border commuters is not uncommon here in Konstanz. The brokers here also know the banks that do not cause problems with such matters. Because the banks in the border area are of course familiar with the topic as well.

Your broker should now also work for his money and go beyond his search mask to contact the banks and simply inquire about how the matter looks.

Our inquiry was still quite generic, so it was an initial informational conversation, which is why the broker did not directly offer to run to the banks; he probably only does that when it becomes more concrete. Because we want to repay at 1%, that was already clear to him anyway; currently, only ING would agree to that, but with our current residence, that would not be possible there.

I also hope that the potential bank sees that the risk is comparatively likely to be lower with us, but I just don't know if that might be too much of a "special treatment."

Search for a bank on the Weinstrasse. Your situation also has nothing to do with cross-border commuters. The bank has - thanks to equity in the form of a building plot - virtually zero risk.

Our inquiry was still pretty generic, so it was a first informational conversation, which is why the broker did not immediately offer to go to the banks; he probably only does that when it becomes more concrete. Because we want to repay at 1%, that was clear to him anyway, currently only ING would accept that, but with our place of residence, that wouldn't be possible.

I also hope that the potential bank sees that our risk is comparatively likely lower; I just don't know if that might be too much of an "extra special treatment".

Good morning,

that's how it looks.... so for ING you have to both live and work in Germany to get financing from them.

Switzerland is not in the EU, and so I assume the salary is currently paid out in CHF? Then, at the banks, there is the foreign currency issue (so many banks are ruled out because of that!)

and the work should then not be 40% less WORTH, but if you live in Germany then, you automatically have to pay taxes in Germany, so much less net remains from the gross than is usually the case in Switzerland.

If you were to build somewhere on Lake Constance, financing with a regional bank on site would be possible (I did such financing last month... customer works in CH, lives in DE)

Currently, I might have 1-2 banks that can support such constellations. But you should plan at least 2% repayment here.

On the other hand, if interest rates rise by 0.50%–1.00% in the time until you then have the 3 statements from Germany, then even at ING it will hardly be cheaper with 1% repayment (by the way, ING raised interest rates by up to 0.33% yesterday... so the 3% rate is more likely to be reached than by the end of the year....)