The banking legislation of the European Union has now become significantly tougher and practically does not allow financial organizations to provide mortgage loans to persons who do not have resident status, permanent registration, declared income and collateral (securing loan repayment).
European real estate for our fellow citizens is an effective way of investing both our own and borrowed funds. Low interest rates, flexible policy of banks stimulate Russians to buy real estate abroad. Many wealthy people choose this option in order to become the owner of the coveted residence permit.
The credit policy of financial institutions is not uniform for the EU states. Mortgage products are characterized by a range of interest rates and a variety of mechanisms for registering real estate transactions.
Interest rates for residents are not high. The top five EU countries with minimum mortgage rates include Sweden, Finland, Germany, Luxembourg and Slovakia. The value of the interest rate for registration of a mortgage loan in them does not exceed 2% per year.
For foreign citizens, incl. Russians, who represent an increased source of risks for banking institutions, have different lending conditions; they can get a mortgage in Europe only if they comply with a number of requirements and on worse terms compared to residents. But this does not mean at all that it is not possible to obtain a mortgage in Europe. The most favorable conditions for obtaining a mortgage are offered to Russians by such states as Austria, Germany, Portugal, France, Switzerland (from 2 to 4 percent per annum for 15-35 years).
The set of documents requested by banks is translated into the local language and legalized. Of course, banks are more willing and quick to approve the applications of clients with confirmed solvency and stable employment in the territory of the state in which the application for a mortgage loan is submitted. In some countries, banks may require the provision of a certificate of the borrower’s health, life insurance policy and mortgaged real estate.
Europe-House lawyers will prepare for you the necessary procedure for obtaining a mortgage loan in most European countries.