FAQ
Frequently asked questions
Answers.
What we explain in every first consultation — arranged here by topic.
Topics
Six areas
Jump straight to the right section.
- GeneralAbout ME Finance & Our Advice5 questions →
- FinancingBuying & New Builds5 questions →
- RefinancingRefinancing & Forward Loans5 questions →
- ModernisationRenovation & Subsidies4 questions →
- Self-EmployedFreelancers, Entrepreneurs & Limited Companies5 questions →
- CommercialMulti-Family & Commercial Properties4 questions →
General
About ME Finance & Our Advice
About ME Finance & Our Advice.
- How much does advice from ME Finance cost?
- Our advice is free of charge for you. We are paid by the financing bank if your loan completes (standard practice in the German mortgage market under Section 34i of the German Trade Regulation (GewO)). You pay the same interest rate as you would applying to the bank directly — but without a broker, you only have access to that one bank's offer.
- Are you tied to a particular bank?
- No. We are an independent broker under Section 34i of the German Trade Regulation (GewO) and work with more than 500 banks and insurers — from major banks to savings banks (Sparkassen), cooperative banks (Volksbanken) and specialist lenders for the self-employed or commercial properties.
- Why are there no interest rates on the website?
- Because rates depend on your creditworthiness, the property and the day. Anyone advertising with published rates is selling hope, not advice. You receive your specific indication after the first consultation — free of charge and without obligation.
- Which area do you cover?
- Our focus is the Rhine-Main region: Rodgau, Hanau, Offenbach, Frankfurt, Aschaffenburg and the surrounding area. For complex financing cases (self-employed, commercial, holding structures) we work nationwide.
- How does the first consultation work?
- 30 minutes by phone or video call. We clarify your situation, your goals and the key figures. You receive an initial assessment and can then decide at your own pace whether you'd like to continue. No obligation, no sales pressure.
Financing
Buying & New Builds
Buying & New Builds.
- How much equity do I need?
- Rule of thumb: the purchase costs (real estate transfer tax, notary, estate agent — in Hesse 9–14% of the purchase price) plus 10–20% of the purchase price. 100% financing is possible, but more expensive and only sensible in certain situations. See our guide on equity for details.
- What counts as equity?
- Savings, fixed-term deposits, building society savings (Bauspar balances), shares/ETFs (often at a discount), your own labour on a new build (sweat equity, within limits), land you already own outright. Not counted: gifts from parents without a written agreement, borrowed money, unsecured inheritances.
- How long does it take to get a financing approval?
- An indication often within 24–72 hours. A binding approval (loan agreement) usually takes 1–3 weeks once your documents are complete. Complex cases (self-employed, multi-family properties) take longer.
- Which fixed-interest period should I choose?
- Rule of thumb: the longer you plan to hold the loan and the lower your repayment rate, the longer the fixed period should be. 10, 15, 20 or 30 years — each has its place. See our guide on choosing your fixed-interest period for details.
- Can I agree unscheduled repayments?
- Yes, almost always. The standard is 5% of the original loan amount per year — often available at no extra cost. Higher unscheduled repayment rights are possible for a small interest premium.
Refinancing
Refinancing & Forward Loans
Refinancing & Forward Loans.
- When should I start thinking about refinancing?
- At the latest 12 months before your fixed-interest period ends. If rates are rising, earlier (24–60 months ahead via a forward loan). Anyone who waits for the bank to send its renewal offer gives up their best negotiating position.
- What is a forward loan?
- A refinancing loan you sign today at today's rates, but which only starts in 6–60 months. You pay a premium (usually 0.01–0.03% per month of lead time). See our guide on forward loans for details.
- Can I terminate my loan after 10 years of the fixed-interest period?
- Yes. Under Section 489 of the German Civil Code (BGB), 10 years after the loan was fully paid out you can terminate with 6 months' notice — without any early repayment penalty. This also applies to longer fixed periods (15, 20, 30 years).
- What is an early repayment penalty (Vorfälligkeitsentschädigung)?
- The compensation you pay the bank if you terminate before the fixed-interest period ends (unless Section 489 BGB applies). The calculation is complex — when current rates are low, it is often very high.
- Is it worth switching banks when refinancing?
- Often, yes. Banks price existing customers differently from new ones. Switching involves a one-off cost (notary fees for transferring the land charge, approx. 0.1–0.2% of the amount), but over the full fixed period it often saves several thousand euros.
Modernisation
Renovation & Subsidies
Renovation & Subsidies.
- Which KfW subsidies are available for modernisation?
- KfW-261 (residential building loan for energy-efficient renovation) and KfW-262 (supplementary loan). In addition, BAFA grants for individual measures (heating replacement, insulation). Conditions change frequently — we check the current status for you.
- Do I need an energy consultant?
- For KfW Efficiency House subsidies: yes, it is mandatory. For BAFA individual measures: often required as well. The consultant's fee is itself eligible for subsidies — talk to us, we know the process.
- Can I finance modernisation through my existing property financing?
- Frequently, yes — by topping up your existing loan or as part of your refinancing. Advantage: a lower rate, since the land registry charge is already in place. Disadvantage: a longer repayment period for the modernisation costs.
- Are there modernisation loans without a land registry entry?
- Yes, up to around EUR 50,000, often as an unsecured modernisation loan. Faster and with less paperwork — but at a higher rate than loans secured via the land registry.
Self-Employed
Freelancers, Entrepreneurs & Limited Companies
Freelancers, Entrepreneurs & Limited Companies.
- Is it harder to get property financing as a self-employed person?
- Yes and no. You usually need 3 years of self-employment and management accounts (BWA)/tax returns instead of payslips. But: there are banks that handle self-employed applicants routinely — and others that only really know how to deal with employees. We know the difference.
- Which documents do I need as a freelancer?
- Income tax returns and assessments for the last 3 years, a current-year management report (BWA) plus a trial balance, and where applicable the S/G tax annexes. For managing directors of a GmbH: additionally the company's annual financial statements and, where applicable, the shareholders' agreement.
- Can I finance through a GmbH (limited company)?
- Yes. An asset-management GmbH (VV-GmbH) as the buyer is often attractive for tax purposes with rented properties. However, it requires equity from within the GmbH (or a shareholder loan) — and not every bank will do it. We know the specialists.
- What about holding structures?
- That works. The operating GmbH pays its profits into the holding company, and the holding finances the asset-management GmbH. Complex, but sensible for growing portfolios. With this structure, we need your tax adviser and a bank specialist at the table.
- What if my management accounts (BWA) look weak this year?
- Stay realistic. Banks look at the 3-year average, not the last quarter. In the case of structural downturns (sector-wide, insolvencies), be upfront about it — avoiding the issue doesn't help. We discuss in advance which bank handles it in what way.
Commercial
Multi-Family & Commercial Properties
Multi-Family & Commercial Properties.
- From what size does financing count as commercial?
- For tax purposes, only once letting becomes a commercial activity (rare). From a bank's perspective: from a multi-family property (3 or more units), mixed-use, or a purely commercial property (office, medical practice, warehouse). Different banks, different risk models, different terms.
- What is cash-flow financing?
- The bank assesses not only your creditworthiness but also the property's DSCR (Debt Service Coverage Ratio): are the rental incomes sufficient to cover interest and repayment? For existing properties with solid tenancies, this is often attractive.
- Which KfW programmes are available for commercial properties?
- KfW-276/277 for the energy-efficient renovation of non-residential buildings. The KfW entrepreneur loan for the operating GmbH. For pure investment purchases (via an asset-management GmbH), KfW funding is usually not available.
- Do I need equity for a multi-family property?
- Typically 20–30% of the purchase price plus purchase costs. With very strong cash flow and creditworthiness, less may be possible. A higher equity ratio means better terms.
Further reading
More depth
If you'd like to know it in more detail.
Contact
Your first consultation — free and without obligation.
30 to 60 minutes in which we listen to your situation, answer first questions and tell you transparently whether and how we can help. No sales pitch. No pressure.
- I.We get back to you within one working day by phone or e-mail.
- II.We arrange an appointment — in person, by phone or via video call.
- III.We assess your situation and tell you openly how we can support you.
Start your enquiry
A few quick steps to your personal assessment. Response within 24 hours, strictly confidential.
- Key facts about your plans and equity
- Occupation and net household income
- Preferred advisor, or leave it open
- Your contact details
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Takes about 2 minutes. No credit check at this stage.