What types of income do banks accept?

Show notes

There are some fundamental aspects of securing a bank loan in Germany. The primary focus is on demonstrating sustainable income. For that banka accepts various income sources, including traditional ones like salaries, rentals, investments, part-time work, pensions, self-employment, child benefits, and alimony.

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One of the most important aspects for banks are job stability. So they are wary of temporary contracts and self-employment involvement. For self-employed individuals, a business track record of 2-3 years is typically preferred. A unique aspect covered is "Mini-Jobs" in Germany, requiring a year's tenure for banking consideration.

Rental income stability, investment liquidity, and the duration of pensions, child benefits, and alimony are vital for loan approval. You need to remember that individual banks vary in their assessment methods. The episode concludes by highlighting the value of consulting the finance team for personalized advice and comparing offerings from numerous financial institutions.