Is it possible to get a mortgage with an EU Blue Card?
Mortgage Tips
A lot of non-German residents come to the country with an EU blue card, but it is sometimes unclear whether you can get a mortgage with one. Read below to find out what you should know about getting a mortgage in Germany with a blue card.
What is an EU Blue Card?
First, it’s important to know exactly what the Blue Card is. The Blue Card is an approved EU-wide work permit allowing high-skilled non-EU citizens to work and live in any country within the European Union. In order to qualify for one of them you will need to have a degree, a employment contract with a German company and a minimum salary of €50,800 a year. However for those with skills in fields with labor shortages the minimum salary is €39,624 a year.
Once you are approved for a Blue Card, it will be valid for up to four years. It will depend on the length of your work contract, so for those contracts that are shorter than four years it will be valid for less.
After three years, those with blue cards are able to apply for an unlimited residence permit, which is called an Aufenthaltstitel. For those who have at least a B1 in German you are able to apply for an unlimited residence permit after just two years.
How to get a mortgage with the EU blue card in Germany
There is a lot of confusion as to whether those with an EU Blue Card can get a mortgage in Germany, but the simple answer is, yes they can. There are a few banks that will allow Blue Card holders to get a mortgage, however they do have certain requirements to qualify for a mortgage.
In order to qualify Blue Card holders will need:
1. Some proof of permanent income
- 2. Enough money for closing costs and for a down payment.
- 3. A maximum on borrowing: the highest amount that you can borrow is 100 times your monthly net income. If you receive income in currencies other than Euro it does not enter into the calculation.
If all of the above requirements are met then it will be easy to get a mortgage with an EU Blue Card. You will even find that you will be able to get great mortgage rates, as good as those who are German residents or nationals.
To find out exactly what you can afford to buy in Germany, use this mortgage calculator.
If you would like to ask any questions about the process, please do email me at hello@-mortgage.de or by get in touch by phone +49176 222 34 333.