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Berlin-Projekt helps foreign investors find the most suitable lender for a mortgage, based on their needs and current financial position. We will not only find the best lender and loan product to suit your needs, but will also submit the application on your behalf, and administer the loan process right up to settlement. We are proud to state, that we have sound product and market knowledge, backed by years of experience in fitting out our customers with the most suitable mortgage product. We have access to a broad band of lenders in Germany including global players as Deutsche Bank, just providing to each of our customers with the best solution at the time of purchase. Our network allows for quick and effective communication to a given lender, for all matters concerning your mortgage, both before submission as well as after settlement.
Berlin Projekt will submit your application once we are satisfied that there is a good chance of the application being accepted. In most cases approval is granted within only a few days of submission. We will keep you updated throughout every step of the application. Once conditional approval has been granted, lenders will invariably need further documentation before the mortgage can be unconditionally approved. This may be subject to receiving any outstanding documents as a contract of sale, a valuation of the property et cetera. We will let you know exactly which documents may still be outstanding, and will submit these on your behalf as part of the application process.
To apply for a mortgage you will have to decide, to which degree of a loan-to-value scale you choose to go for. This can vary between roughly 50% to 80%, always depending on the property and location as well as your financial position. We recommend to leveraging your investment in taking out a mortgage of your property at a 50% loan-to-value scale, all mortgage costs and additional property costs covered. Overall, this is a safe and clever investment, because you can be sure that your mortgage will be fed by the rental income and provide you after deductions with a little extra cash each month. Back-pay will always be at least 1% of the mortgage p.a., leaving you the choice of paying back up to 5% maximum per year, if you desire to do so. For a possible purchase, add 8.38% of additional buyers cost to your equity of 50%, you will be required to pay 58.38% of the purchase price and receive the missing 50% from the bank as a loan to your property. If you do not mind feeding your mortgage partially from your monthly income, you can depending on your financial position go for the higher figures and take out a mortgage of up to 80%, whilst your mortgage rates will increase to at least 50 % and be left uncovered by your rental income. Always remember, the higher you leverage your investment, the more you will have to feed your mortgage from your monthly income. This might be just the right way to proceed, if the property promises to increase in value relatively quick.
Once you decided to purchase your part of Berlin it is important for you to understand the parameters of purchase. Additional buyers cost will apply, which are 1.5% notary and 4.5% stamp duty. On top please add the commission for Berlin-Projekt, which is 2.38% including 19% German VAT. All additional buyers cost total to 8.38% and cannot be build in to the mortgage. These additional buyers cost will have to be paid separately as a part of your own equity. Most German estate agents offer a property for sale and leave the rest of the extensive networking and liaison to the customer. For this, most German estate agents charge up to 7.14% including 19% German VAT. After that, you are left on your own. Our commission (2,38%) is the lowest on the market and included is all the work pre and after sale.
Throughout the entire loan process, Berlin-Projekt will keep you updated on the status of your loan application. Our service to you does not stop at settlement though. We encourage you to contact us anytime you have any queries about your mortgage. In addition to communicating with the lender of your choice on your behalf, we will also be able to assist by liaising with your solicitor or notary and any other party that may play a role in your loan application. Full customer satisfaction pre- and after-sale is the goal we aim for. Further to this, we will ensure that you are fully aware of everything relating to your application.
Necessary documents include your last tax-report (referred to as P 60) and the last 3 wage slips. Recent account statements proofing your equity will needed, too. For a complete overview of necessary documentation, please download our check-list. Off course, collecting all necessary documents regarding the property will be taken care by us.
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