Update (as of 2026)
Since this article was originally published in 2019, the conditions surrounding property financing for freelancers and self-employed individuals have changed. In particular, higher mortgage interest rates, stricter financing assessments and a greater focus on long-term income security now play an important role. Banks continue to assess not only current income but increasingly also the financial stability, liquidity and future prospects of the self-employed activity. Those who can present their financial situation transparently and demonstrate a solid credit rating still have a good chance of successfully securing property financing in 2026.
Property financing for freelancers
Freelancers are individuals who work independently in a liberal profession and do not operate a commercial business. Well-known professional groups include doctors, journalists, lawyers, architects, engineers and waiters. According to the statistics portal Statista, there were around 1.41 million self-employed individuals in Germany in 2018.
For this group of professionals, financing their own home with a bank loan appears to be more difficult than it is for the majority of employees or civil servants. This is because banks impose stricter requirements on freelancers when assessing property financing applications and carefully examine their individual income and business circumstances. The process is therefore more complex and time-consuming. However, in most cases it is certainly not impossible, provided that applicants can find a bank willing to consider financing requests from self-employed individuals.
Freelancers generally do not need to be overly concerned about obtaining property financing if they can document their income situation thoroughly and demonstrate that their professional activity is sustainable. This applies not only up to the date of the loan application but also with regard to future prospects. This will generally be easier to establish for well-established medical practices or law firms than for young start-ups that are only beginning to establish themselves in the market.
“As a rule, there is simply more paperwork involved,” explains Christian Hanke, Head of Interhyp’s Berlin branch. He adds: “In principle, freelancers are just as eligible for financing as employees, provided that they can demonstrate a sufficiently up-to-date and sustainable credit profile.”
Compared with freelancers, assessing the creditworthiness of salaried employees is more straightforward and easier for the bank concerned. A review of reliable monthly payslips and a tax assessment notice enables a bank to assess a prospective customer’s potential ability to make payments more quickly. A regular monthly net income therefore represents a simple and reliable factor in the assessment.
For self-employed individuals or freelancers, whose income is often subject to seasonal, order-related and monthly fluctuations, banks need to conduct a more detailed examination in order to determine their current and future creditworthiness. Financial institutions therefore require at least profit statements, tax assessment notices and annual financial statements from the previous two to three years to obtain a meaningful overview and make a decision. “As a rule, lenders require documented evidence covering the previous two to three years,” says Hanke.
Assessing the income situation of freelancers and conducting an economic analysis of their business is more complex. It requires well-trained advisers who understand the individual nature of each application.
Due to the large number of documents involved, processing these loan applications is also particularly time-consuming and takes longer than applications submitted by employees or civil servants. The documents must be reviewed and assessed in greater detail and according to the specific circumstances of the applicant. “Because of the increased assessment requirements, an application from a freelancer or self-employed individual may take longer to process, depending on the banking partner,” says Christian Hanke.
As with other applicants, it is also advisable for freelancers to contribute equity to the financing in order to potentially reduce their monthly interest payments. Since freelancers may occasionally earn an unexpectedly higher income, it can be beneficial to include and agree on options for special or additional repayments in advance. Ultimately, the applicant’s current and future creditworthiness is the decisive criterion for financing banks when assessing the purchase of a new home, which can represent a valuable investment in the applicant’s own future.
