Mortgage loan for debt-free residential property - house purchase abroad

Hello everyone,

I have been living in Singapore for a long time and would now like to acquire property here.

For financing, I would like to mortgage a condominium in Germany. The facts:

- 2-room apartment in a good location in Hanover. 46m2.
- Purchased in 1995 (?) for approximately 65,000 euros (converted). I have no current valuation but doubling is certainly not unrealistic. Debt-free and no land charge registered.
- Planned loan amount around 55-60,000 euros

This should not be a problem given the current interest rates and loan-to-value ratio, but I do not have a residence in Germany. Is this a knockout criterion? Address and bank account (comdirect) are available.

Looking forward to tips and advice on how to proceed best.

Thank you very much!

however, I do not have a residence in Germany. Is this a KO criterion?

No. But not every bank necessarily does that.

- Planned loan amount approx. 55-60,000 euros

That is rather bad. Mini loans are really expensive (if you find a bank).

As a combo, you are a customer that basically no one wants (even though the risk for the bank is manageable). Living abroad and very small loan. How would you manage the contract signing?

What is the apartment in Singapore worth? For renting out or moving in yourself. The bank looks more at secure income that can be garnished with such small amounts. Without a German employment contract, it will therefore be almost impossible. What rent does the German apartment bring in, then you can calculate the value more precisely and pledge the rent.

I think 1-2 banks could do it in Germany.

Safety in Germany, which is probably rented out?

Income is in Singapore, but if there is a viable German address, it would be feasible. (Parents etc.?)

But very, very bad conditions would be expected, so the question is whether it would be better to finance the apartment in Singapore because under 100k you can really expect huge surcharges at the banks.

but if there is a deliverable German address, it would be feasible. (Parents etc.?)

Keyword "delivery authorization". It is a common procedure. Baufinanzierung-Nord once advertised that they could also place expats in Singapore well.

I was probably a bit naive about the whole thing and thought the apartment would be sufficient as collateral.

Good point also about the signature.

Thanks for the hints.