Mortgage abroad: truths and myths

Austria

It is difficult for Russians to obtain a loan in Austria without income or property in the European Union. However, one can use a guarantor or the client's own funds. Russian banks in Austria offer large loans for any real estate, provided the client has creditworthiness. Low interest rates make borrowing in this country attractive.

Bulgaria

Most transactions in Bulgaria are paid for with personal funds; however, it is possible to find a Bulgarian guarantor and obtain a loan at a lower interest rate. Some banks offer loans of up to 70% of the value of new builds from developers.

Germany

The conditions for mortgage loans in Germany depend on the amount, term, and collateral. It can be difficult for Russian citizens to obtain foreign loans, so Russian banks are often used. Sberbank Europe AG provides loans to international clients.

Greece

Foreigners can access mortgage loans in Greece. Interest rates start at 3%, with terms of up to 25 years. Proof of income and property insurance are required.

Italy

Foreigners can obtain a mortgage in Italy for a term of up to 25 years, with amounts up to 60-70% of the property's value. Interest rates depend on the bank and the client.

Cyprus

Mortgage loans are available to foreigners for 60-70% of the property's value for a term of up to 25 years, with fixed or floating interest rates.

Latvia

Residents and foreigners are offered mortgage loans with an application processing fee. The terms and conditions depend on the bank.

Poland

Mortgage lending is well developed in Poland. For foreigners, the terms depend on the bank and the client.

Slovenia

Mortgage loans are available to residents and foreigners, but rarely cover 100% of the property's value.

France

The conditions for mortgage loans in France also impose requirements on the borrower and property insurance.

Every country offers opportunities for foreigners to purchase real estate using a mortgage. The conditions may vary, but the possibility of obtaining a mortgage in Europe is available to many Russian citizens dreaming of owning property abroad.

Buying real estate abroad: key aspects

To obtain a mortgage for real estate abroad, several mandatory conditions must be considered. For example, the property must have a special act No. 16. The foreign borrower must also leave a deposit in the bank equal to 12 monthly loan payments. Additionally, it is required to sign a representation agreement in the country with a company specializing in real estate. It is very important to pay attention to the insurance of the purchased property. Sometimes, the information cards for properties indicate the possibility of buying real estate on credit.

Mortgage in different countries

• Germany:Foreigners can obtain a mortgage loan with at least 30% equity and a stable official income. The loan is granted for liquid properties at a reasonable price. However, obtaining a mortgage for residential properties in non-residential condition or for commercial and inexpensive properties is challenging. The application processing takes from one to two months, requiring a complete set of documents and sometimes additional proof of solvency.
• Greece:There used to be a loan program for non-EU citizens, but it has been temporarily suspended without a clear date for resumption. Banks required an official annual income of €30,000 and a credit history, refusing to issue loans for housing cheaper than €50,000 or for commercial properties. The new terms of the program have not yet been defined.

Almost all real estate buyers in the European Union, including Russia

They prefer not to take out mortgages when making real estate transactions. According to the data, only 2% of buyers take out loans, with an average amount of €3,796,000.

An alternative for Russians

Russians have the option to choose an installment plan from property owners, with the average term being 6 months and the maximum term being 24 months.

Opportunities in different countries

• It is not possible to take out a loan for purchasing real estate in Greece, but if you buy a property worth over €250,000, you can obtain a residence permit.
• In Italy, mortgages are available for non-residents; however, banks do not approve loans for foreign applicants, including Russians, in 95% of cases.

Difficulties with obtaining a mortgage

Banks have difficulties in verifying the solvency of clients because of their income in Russia, so they do not take into account significant assets in Russia, if there is official income in the Eurozone, then credit funds can be provided.

Getting a loan in Cyprus

In the case of Cyprus, each application is evaluated individually, requiring confirmation of the client's financial capability, as well as a request for their credit history and the provision of relevant documents. Mortgages in Cyprus are currently not very popular, and loans are mainly granted to local residents.

Mortgage amounts for Russians

Russians, if they take out a mortgage, do so only for small amounts to purchase apartments costing up to €250,000.

Mortgage loans in Latvia

As an alternative to traditional bank lending, let's consider the option of installment payments from the developer. This is a fairly common practice in the primary real estate market, providing clients with unique opportunities. In Latvia, mortgages are often issued in euros, and the loan amount can reach up to 70% of the property's value. The interest rate on loans ranges from 4.5% to 6%, and the repayment terms can be from 5 to 20 years.

Requirements of banks in Latvia

• Verification of income and housing value documents
• Individual interest rate from 4.5% to 6%
• The commission for issuing the loan is about €2,000.
• The possibility of early repayment without penalties

Mortgage loans in Poland

According to Pavel Ruzhitsky, the head of the real estateagency "Orzech Lux," banks in Poland are carefully reviewing applications from non-EU citizens and individuals from other countries. Loans may be granted at an interest rate ranging from 4% to 4.5%.

A new approach to acquiring a company and obtaining a mortgage

One should not adhere to the traditional scheme of company registration, employment within it, and subsequent mortgage acquisition. Changes in legislation prohibit being both an employee and a founder of a company at the same time, and also do not recommend remaining a director. The organization must actively engage in business and have stable financial operations. For successful mortgage approval, it is important that the borrower's income is in the same currency as the loan.

Cooperation with credit brokers

We do not offer loan processing services directly; however, we can recommend experienced loan brokers who will provide full support throughout the process, with the costs covered by the bank. Brokers do significant work in preparing the loan application, gathering documents, and presenting it to the credit committee. As a result, banks can offer favorable terms to clients while maintaining standard interest rates.

Mortgage in Slovenia

If you are interested in obtaining a mortgage in Slovenia, you should consider that the loan amount can reach up to 70% of the property's value, and the interest rate depends on the specific bank and can be adjusted by agreement. The currency of the loan in the country is euros.

Thus, mortgages in Slovenia represent a real opportunity for those who intend to to purchase real estate in this beautiful country. Working with professionals in the field of lending, you will will be able to simplify the process of obtaining a mortgage without additional costs and complexities.

Bank lending in Slovenia and Austria

Banks in Slovenia and Austria are currently actively providing loans to foreign investors for the development of new shopping centers and the acquisition of ready-made commercial real estate with reliable tenants. The attractive low interest rate of 2% to 2.5% serves as a key incentive, helping to increase project profitability and ensuring good dividends.

Loan terms

The amount of financing depends on the investors' strategies and long-term plans. Investors can typically expect a loan of 50% of the project's value for five to seven years when investing in a single property. Part of the rental income can be used to pay off the mortgage. There is also the possibility of obtaining a loan of 70% when purchasing three to five or more properties, where the entire rental income is used to repay the loan.

Such schemes are usually designed for eight to ten years and can be profitable when using only 30% of one's own funds.

Mortgage in France and Monaco

Mortgage loans in France and Monaco are granted in euros, usually amounting to up to 50% of the of the value of the property. Interest rates range from 1.6-2% + Euribor for a period of 8 to 10 years. The solvency of the borrower plays a key role in deciding on the loan. It is important that the repayment on It is important that the loan repayment does not exceed 33% of the client's income.

Mortgage in Croatia

• Croatian banks offer mortgages in the national currency with a currency clause in euros for amounts up to €250,000.
• Additional expenses for administrative costs, payment for the appraiser's and notary's services may increase by 1-1.5% of the property's value.

Mortgages are a favorable instrument, allowing the use of tax incentives and reducing overall amount of income tax.

Optimization of mortgage loans in France and Monaco

Banks offer various ways to optimize mortgage loans. Clients can take advantage of deposits or invest in financial instruments during the loan repayment period to reduce or fully cover mortgage expenses. Each client has the opportunity to choose the most beneficial lending option for themselves and to take advantage of additional bonuses from the bank.

Mortgage conditions in different countries in Europe

There are significant differences in mortgage conditions across different countries in Europe. In Croatia and the Czech Republic, as in many other countries, access to mortgage loans depends on a variety of factors.

Mortgage in Croatia

Local banks in Croatia most often deal with Croatian citizens. However, some banks, such as such as Raiffeisen and Erste Bank, offer programs for foreign borrowers, although their terms and conditions are different. Previously, Sberbank Croatia also offered loans to Russians, but these terms are no longer relevant.

In order for foreign borrowers to obtain a loan, they need to have official permission to live and work in the country, as well as open a bank account through which the monthly loan payments will be made.

Mortgage in the Czech Republic

In the Czech Republic, the conditions for housing loans are more favorable, with loans offered on better terms. The interest rates hover around 3% and are adjusted to the individual circumstances of the borrower. Both residents and non-residents can obtain loans at similar rates, making them attractive to potential real estate buyers. Special conditions with more advantageous rates and financing levels are available to Israeli citizens.

Features of mortgages in both countries

Mortgage loans in both countries are usually granted for terms of up to 20-30 years, with the possibility to long-term fixing of the interest rate. This gives borrowers the opportunity to plan their expenditures and reduce the interest rate risks in the future.

An important advantage for clients is that the legislation provides for the possibility of early repayment of the loan without any penalties.

The choice of housing also affects the ability to obtain a loan: new properties are more likely to be approved than old ones or those in rural areas. Therefore, banks assess the property beforehand before issuing a loan to determine its value and condition.

Conclusion

Thus, the mortgage loan market in Croatia and the Czech Republic offers opportunities for different categories of borrowers depending on their status, nationality, and the type of property they desire.

Conclusion

In the modern diversity of mortgage lending options offered by European banks, special attention should be paid to access to real estate financing for foreign citizens. From Austrian to Bulgarian and German conditions, each country offers its own features and requirements. Austrian banks, for example, stand out with favorable interest rates and the possibility of financing various types of real estate, while in Bulgaria, advantageous conditions are available with a guarantor and construction financing. In Germany, the main focus is on the liquidity of the property and the stability of the borrower's income.

Every country has its unique advantages and conditions that require careful analysis and preparation. Despite certain limitations and challenges, foreign investors are increasingly seeking mortgage loans in Europe, attracted by low interest rates and high-quality service. However, a key factor in successfully obtaining a loan remains meeting the bank's requirements and thorough document preparation, which ensures confidence in long-term investment in foreignreal estate.