Self-disclosure for house & apartment loan

Self-disclosure contains your income, assets, expenses, debts & Schufa query. You get the self-disclosure from your bank. So you know how much credit your bank will give you for your property.

Self-disclosure contents

At a glance:

1. Personal data
2. Revenue and assets
3. Expenditure and debt
4. Documents
5. Consent Schufa query (creditworthiness)

Personal data

• Name, date and place of birth
• Address and contact details
• Marital status and number of children
• Nationality

Revenue and assets

• Income from salary, self-employment, rental income, etc.
• Savings and investment accounts
• Real estate holdings and their estimated values
• Securities, shares and other assets

Expenditure and debt

• Monthly expenses such as rent, loan installments, living expenses.
• Existing credits and loans
• Open invoices and payables

Documents

• Proof of salary for the last few months
• Bank statements to confirm your financial situation
• Evidence of other assets, such as securities or savings books
• If you are already a customer at another bank, inform about your account there

Consent Schufa query (creditworthiness)

• Allow the bank to check your creditworthiness with Schufa or other credit bureaus
• A positive credit rating increases your chances of obtaining favorable financing

Bonus tip 1: Go to the bank before the deal moment

Before you jump into the real estate market, I recommend building a good relationship with your bank ahead of time.

That doesn’t just mean when you need financing. Bank advisors can give you valuable tips and advice to improve your financial situation.

Bonus tip 2: Say hello to bankers even when times are good

Building a relationship with your bank advisor is not a one-way street. Show interest in your bank advisor, even if you don’t need financing right now.

Visit the bank to give updates, talk about your plans, or just say hello. This can help you get better support during difficult times.

Self-disclosure simply explained

Self-disclosure for real estate purchase or financing is an important step on the path to your dream home. By properly compiling the required information and maintaining the relationship with your bank, you can ensure that the process goes smoothly and you get the best terms for your real estate financing. Check out my new YouTube video for more useful tips and information on this topic.

Lukinski YouTube: Yield, Capital Investment & Co.

Discover with me the crucial factors, key figures and basics of real estate investment. Compared to other forms of investment, real estate offers a ‘safer’ way to invest capital with consistent returns and long-term appreciation. Want to invest your money wisely? My recommendation: Real estate, passive income and a good life.

• Lukinski YouTube

Determine maximum purchase price: Important factors

One of the most important steps in the purchase of a property, which is often underestimated, is the determination of the maximum purchase price of the property. In order to avoid unwanted surprises here, it is important to determine this before you start looking for a property. This usually involves sitting down with your bank advisor and going over your finances. You then show a certain amount of equity and the bank then gives you a corresponding loan. The amount of this loan depends on your creditworthiness (for this you have to submit a self-disclosure ), as well as on your equity to be presented. The loan-to-value ratio of the property and the monthly charge are also taken into account.

Equity X + Bank loan Y

These are the factors that matter:

• Credit rating
• Mortgage lending value of the object
• Available equity
• Monthly load

Let’s now go through the individual factors in a little more detail:

Credit rating: assets vs. liabilities

When your credit rating is checked, your assets and liabilities are mentioned and compared. If the balance is positive, i.e. your assets outweigh your expenses and liabilities, your chances of getting a loan are very good. And the higher this credit rating, the lower your equity investment. After all, the bank also wants your money back as soon as possible and wants to be sure to get it.

Assets are matched with liabilities

Mortgage lending value of the property: market value & fair market value

The mortgage lending value of the property is generally lower than the market value. The market value is the selling price of the house or apartment if it were sold at the present time. Therefore, the market value is also called ‘theoretical market value’. The mortgage lending value is on average 20% below this. In order to minimize the risk of loan default, banks base their lending decisions on the mortgage lending value and not on the market value.

Mortgage lending value = market value – 20%

Available equity: Dependence on the balance sheet

As a general rule, 20% equity capital is needed. As mentioned before, the exact amount of equity ultimately depends on your credit rating. The more positive your balance sheet, the less equity you have to show. So you can also invest with an equity of 10% or 15% already in a property.

The better the credit rating, the less equity capital

Monthly load: income & expenses

The last important factor that influences the financing and thus the maximum purchase price is your monthly burden. Similar to the credit check, income and expenses are compared here. This is important for the bank, as it allows them to set the conditions for repayment, interest and redemption.

Conclusion: Determine maximum purchase price & financing

So, in addition to your credit rating and available equity, your monthly financing and loan-to-value also matter. This way, you can not only determine the maximum purchase price before you start looking for real estate, but also determine the terms for repaying your loan.

Buying real estate: Learning from A-Z

If you want to learn even more about the maximum purchase price, stop by our guide:

• Purchase price height (external)

â A guide â all the facts â insider tips â buying checklists to the questions that real estate newcomers have when buying the apartment: Owner-occupancy or rental, financing a condo, apartment hunting, real estate portals, realtors, appraisal, purchase prices, negotiations and taxes. Knowledge and experience from experts, in one guide. Learn step by step the process of buying an apartment and many insider tips!

• Buy apartment

What does self-disclosure mean?

The self-disclosure is a proof of your creditworthiness. It includes your monthly income, expenses, assets and liabilities. The self-disclosure is completed either by you, as the sole applicant, or with a second borrower, your co-applicant.

Download: Free Template

There is no official self-disclosure, for example from the tax office. The form and contents are freely selectable.

Here you can find the self-disclosure free of charge, as a good and complete PDF and Word template:

• Self-disclosure – PDF
• Self-disclosure – Word

Structure of the self-disclosure

Before you get to know the individual steps, here is an overview of the structure of the (or this) self-disclosure.

1. Personal data and activity
2. Monthly income and expenditure
3. Assets and liabilities
4. Object to be financed and financing structure (repayment)
5. Consent Schufa information
6. Annex: Proof of income

All the information you provide here comes from yourself. Hence the name of the self-disclosure. It is important, and you should always bear this in mind, that all information must be verifiable.

Financing in brief: framework data ‘ Step 1

To begin with, summarize the framework data of the desired financing. Really, in extremely short form!

• Financing projects
• Type of property
• Use of the property
• Sole applicant or co-applicant

Personal details (borrower) – Step 2

In the second block, you provide information about your personal data. Either as the sole borrower or together with your co-applicant.

• Personal details
• Activity data

Credit rating: Income – Step 3

From the personal data and the activity you come in step 3 to the monthly income and expenses. Here you compare both blocks and calculate the sum. Your result should be a surplus and this surplus is your financial margin.

Monthly income

Monthly income includes income from wages and salaries, but also other variable, regular sources of income.

• Wage / salary (net)
• Recurring monthly variable income
• Income from self-employment
• Pensions and annuities
• Rental income (cold)
• Child benefit
• Maintenance
• Other income

Monthly expenditure

The monthly expenses include the warm rent, or the loan, or the amount of the monthly repayment.

• Housing costs; rent or loan
• Will there be no housing costs in future: Yes / no?
• Health insurance
• Other insurance (pension, building society, life insurance, etc.)
• Cost of living
• Loans
• Leasing
• Liabilities
• Child support obligations
• Other expenditure

Net worth (assets / liabilities) – Step 4

After listing your regular, recurring income and expenses, here is a list of your assets and liabilities.

Again, let’s take a quick look at an example of what belongs in the listing. Let’s start with the assets:

Calculate credit

In the section on assets and credit balances, list the following assets:

• Bank and savings accounts
• Securities (market value)
• Insurance policies (surrender value)
• Real estate assets
• Building savings balance
• Other assets

Calculate liabilities

On the liabilities side, then:

• Bank, instalment and leasing loans
• Guarantees
• Other liabilities

Real estate and financing: Use of credit – Step 5

In the penultimate, fifth step, you give your banker an overview of the property and the financing structure (repayment).

Property

First give your bank an insight into the property to be financed. Purchase price, type of property, type of use, here is all the important information for your bankers.

• Exact address (street, house number, postal code and city)
• Type of use
• Year of manufacture
• Real estate type
• Living space (m²)
• Plot (m²)
• Commercial (m²)
• Rented (m²)
• Undeveloped area (m²)
• Construction
• State
• Last modernization (year)
• Pitches
• Room (for apartment)
• Residential unit (no. according to declaration of partition)
• Location in the object (for apartment)
• Special features

Financing structure and loan amount

After you have described your financing wish, it goes to the amount and the repayment of the financing.

• Purchase price
• Property
• Conversion / Modernization
• Building costs (house)
• Outdoor facilities
• Incidental building costs
• Real estate transfer tax
• Own contribution
• Outdoor facilities
• Notary and land register
• Real estate agent
• Inventory
• Financing costs

In the area of loans:

• Amount
• Debit interest rate
• Redemption
• Rate
• Unscheduled repayment option

Schufa information and data protection – Step 6

Last but not least, you agree to a Schufa query and the privacy policy in your self-disclosure.

Tip. Once a year you get this self-disclosure free of charge:

• Schufa (external)

Supporting documents (income/tax return) – Step 7

Now you still prepare the appendix, your proof of income. For this you need the following documents, as an employee or self-employed.

Documents for employees:

• Last 3 pay slips
• Wage statement from December, previous year
• Last tax assessment
• If real estate assets, also income tax return
• Copy of identity card
• Schufa self-disclosure

Documents for the self-employed:

• Last 3 tax assessment notices
• Last 3 tax returns / balance sheets
• Ongoing BWA (business management analysis)
• Copy of identity card
• Schufa self-disclosure

Conclusion and 3 tips for buyers

Congratulations! You have created your first self-disclosure.

Download: Free Template

Here you can find the self-disclosure free of charge, as PDF and Word template:

• Self-disclosure – PDF
• Self-disclosure – Word

Here are a few more important tips.

Tip 1: Bank details and good relationships

In each self-disclosure must be a bank account, or the banking institution. Choose a bank or a bank account of a bank with which you have a good relationship.

Tip 2: Step 5 with financial advisor

In the sixth step, you give your banker information about the property of your choice, as well as the financing structure. It is best to discuss this part with a financial advisor.

Tip 3: Accurate submission of documents

Really make sure that everything is submitted accurately, with all the important documents. If a mistake creeps in already here, this immediately reduces the chance of real estate financing by your bank.

Living in Westend: Upscale district with elegant flair

The main street of the Westend is characterized by unique cafés, award-winning restaurants and luxurious boutiques. This is not only important to the local companies and businesses, but also to the residents of this exclusive residential district. No wonder: after all, only the wealthiest of the city were drawn here in the 19th century. Since then, the Westend has retained its reputation. Well-tended green spaces and awe-inspiring mansions make up the cityscape here.

Welcome to Frankfurt: International metropolis in Hesse

Frankfurt is considered one of the most impressive cities in Germany. Modern skyscrapers adorn the skyline of the city center, the banking district, home to many major German and European banks, offers plenty of job opportunities and the multitude of exclusive boutiques and culinary delights from all over the world inspire not only long-established Frankfurt residents, but also newcomers from all over Europe. The economic strength of the city, as well as its prime location, make Frankfurt one of the most important and international metropolises in Germany.

Westend: Map & Location

The Westend is located close to the city centre of Frankfurt and therefore not far away from the other sought-after districts Nordend, Gallus & Co.

Here map and location of the Westend:

Sights, Monuments & Co.

The upscale Westend is not only home to a variety of historical monuments and sights, but also plenty of green spaces and parks that make up the charm of the district. While the Botanical Garden is home to over 5,000 species of plants, the Palmengarten invites you to take an exotic tour of the tropics. The third largest park in the city, the Grüneburgpark, is also at home here.

The following sights are right on your doorstep in the Westend:

Sightseeing: A tour of the Westend

The Westend is not only a working district, but also one of the most attractive places to live in Frankfurt. While the many green spaces and parks invite you to go for a walk, Goethestraße with its upscale luxury boutiques from all over the world offers a shopping experience of the extra class. Join us on our tour through the Westend.

Read more here! Frankfurt: Most expensive streets

Goethestraße: Exclusive shopping street – Dior, Armani, Gucci & Co.

Luxurious residential area: mansions, villas & co.

Real Estate & Prices per Square Metre in Westend

You would like to buy a house in the elegant Westend? Much more: Buy a multi-family house directly as a property as an investment, to then rent it out lucratively? In the Westend, both houses and apartments enjoy great popularity. While you have to reckon here for houses in the new building and old building with square meter prices between 3,000 and 4,700 euros, apartments are somewhat more expensive: Here fast times between 10,300 and 14,500 euros become due. Especially if craftsmen, architects & Co. were on the job shortly before the sale, you have to expect a higher sales price.

Here are all prices at a glance:

• Buy a house (existing): 3.890 €/m²
• Buy a house (new construction): 3,570 €/m²
• Buy apartment (existing): 9,122 €/m²
• Buy apartment (new construction): 12,673 €/m²

Conclusion: Living & Housing in Westend

Living and housing in Frankfurt – Especially the Westend impresses with its breathtaking architecture of past times, the well-kept green spaces and the luxurious Goethestrasse. Frankfurt’s real estate market is booming. This is also reflected in the real estate prices in Frankfurt. Life in the Westend is exclusive and discreet. This not only inspires young families with children, aspiring singles and investors, but also many a famous face from film, television, sport and music. Apartments are the most popular here. Although the prices per square metre are among the most expensive in the entire city, they are well worth it.

Frankfurt am Main: Real estate in the financial metropolis

Frankfurt is definitely the most impressive German city. If you stand in the Frankfurt city center, you drive in here, the skyscrapers are something very impressive. This makes the city seem twice as big as Berlin, three times as big as Munich and four times as big as Cologne. The attractive location directly on the Main and in the centre of Central Europe continues to attract people from all over Germany and the world to the city. Frankfurt a.M. is known for its unique skyline, skyscrapers and a thriving financial market. But the city offers so much more. Museums, green spaces, the opera, art halls. Culture as far as the eye can see.

Real estate in Frankfurt

With its opera, theatres and museum mile, Frankfurt has everything that high culture needs. In addition, a decent gastronomy scene, which in terms of internationality has no comparison in the world. There are beautiful parks in the city, as well as the zoo and the Palmengarten, so that you don’t have to leave the city for a short rest. The banks of the Main River invite you to stroll along, in addition to the chic shopping galeries. The skyscrapers are also an attraction in themselves. And if you visit one of the numerous festivals in the summer, it’s hard to get away from the view of the skyline.

• Real Estate Frankfurt

Living in Frankfurt am Main: Popular districts & residential areas

With a population of less than one million, the metropolis in the Rhine-Main region is known worldwide and is home to Germany’s second largest airport. No wonder, after all, Frankfurt is considered an attractive place to live. While the up-and-coming Gallus convinces with its hip flair and excellent location, the Westend and Nordend inspire with their elegant charm paired with historical flair. Find out everything about Frankfurt’s most popular districts, their locations and prices per square metre here. To the overview: Living in Frankfurt am Main

• North End
• West End

Sell, buy and live in Frankfurt am Main

Whether modern Nordend, up-and-coming Gallus, international Westend or the popular neighbouring town of Offenbach, with the current price trend it is worth selling your property in Frankfurt! You want to sell your apartment, your apartment building or your land in Frankfurt? Find out here what you need to bear in mind when selling your property in Frankfurt. In addition: Our free guides and tips on the topics of property valuation, off market and all prices per square metre in Frankfurt – Welcome to Frankfurt! To the overview: Selling real estate in Frankfurt.

• Gallus
• Ostend
• North End
• West End
• Offenbach

Corporate income tax (KSt) – tax for legal entities

Corporate income tax – KSt for short – is usually levied on the income or profit of legal entities domiciled in Germany and is thus complementary to income tax (ESt), which is usually levied on individuals. Taxable persons typically include corporations, associations, cooperatives and foundations. A limitation of corporate income tax comes into play, for example, if the management and headquarters of the legal entity are located abroad. Political entities, federal companies, state banks and social security funds, professional associations and some others are fully exempt from the obligation to pay corporate income tax.

Other taxes for businesses:

• Income tax (ESt)
• Capital gains tax (KapESt)
• Value added tax (VAT)
• Trade tax (GewSt)

If you want to learn more specifically about taxes for real estate companies, you can learn more here:

• Save taxes on real estate

Corporate income tax in detail: collection, levy & allowances

As a corporate tax, corporate income tax counts as a community tax and is levied by both the federal government and the states. The amount of the levy is calculated on the basis of the taxable income, which is the result of the profit less special expenses and extraordinary burdens, and is currently 15 percent plus the solidarity surcharge (SolZ), resulting in an overall tax rate of 15.825 percent. Corporate income tax is payable quarterly on March 10, June 10, September 10 and December 10 in equal instalments as an advance payment and is offset against the actual tax liability at the end of each fiscal year.

Dates for advance payment of corporate income tax:

• March 10
• June 10
• September 10
• December 10

As a rule, the corporate income tax return must be filed by 30 April of the following year at the latest for the preceding tax period. Extensions are possible under certain circumstances. Members of the tax advisory professions are generally subject to different deadlines for filing the corporate income tax return.

Allowances for companies without profit distribution

Companies that do not distribute profits – for example non-profit associations – can benefit from a tax-free allowance of currently 5,000 euros, whereas agricultural and forestry cooperatives and associations may be entitled to a tax-free allowance of 15,000 euros. For companies that record losses within the valid tax period, taxation does not apply at all.

Which companies are subject to corporation tax?

Most legal entities are subject to corporate income tax. All corporations – limited liability companies (GmbH), stock corporations (AG), partnerships limited by shares (KGaA), etc. – as well as cooperatives and business cooperatives are usually affected. In addition, mutual insurance companies and mutual pension fund associations have to meet their corporate income tax obligation, as do institutions, foundations, associations, etc. Commercially active public corporations – for example, transport companies or public utilities – are also affected by corporate income tax.

• Associations
• Institutions
• Foundations
• Corporations
• Acquisition cooperatives
• Business cooperatives
• Mutual insurance companies
• Mutual pension funds
• Commercially active public bodies

Partnerships such as the general partnership (OHG) or the limited partnership (KG) are generally not subject to corporation tax or income tax, but the natural persons and legal entities with partner status belonging to them are. The profit generated by the partnership is subject to uniform and separate determination and is allocated directly to the individual partners in accordance with their legal form: Legal entities must charge their profit shares to corporation tax, natural persons to income tax.

• Partnerships: Legal entities with profit shares

Political parties, professional associations, charitable corporations and federal corporations are generally exempt from corporate income tax.

Overview of company law forms

You can find more information about the different legal forms under the following links. Starting with the sole proprietorship and the registered traders… to the various partnerships and corporations… to other companies such as the family foundation – all the essential aspects of formation, liability, tax burden and more explained simply and understandably! First of all, an overview of the individual legal forms of companies:

• Sole proprietorship (EU)
  • Freelancer
  • Small business
  • Registered traders (e. K.)
• Silent partnerships
• BGB companies / civil law partnership (GbR)
• Partnerships
  • Limited partnership (KG)
  • General partnership (OHG)
  • Limited Liability Company and Company Limited Partnership(GmbH & Co KG)
  • Limited Liability Company and Compagnie General Partnership(GmbH & Co OHG)
• Corporations
  • Stock corporation (AG)
    • AG & Co KGaA
  • Partnership limited by shares (KGaA)
  • Limited liability company (GmbH)
    • GmbH & Co KGaA
  • Entrepreneurial company / UG (limited liability)
  • European Company / Societas Europaea (SE)
    • SE & Co KGaA
• Other companies
  • Foundations / Family Foundations
  • Insurances
  • Partnerships
  • Registered associations (e. V.)
  • Registered cooperatives (e. G.)

Taxes in Germany: List

Corporation tax (KSt), income tax (ESt), capital gains tax (KapESt), turnover tax (USt), trade tax (GewSt) – who pays what? In this overview of the different types of taxes / tax forms in Germany, you will find relevant taxes for you as an individual and for your business, depending on which legal form you have chosen. Also, after the tax list: How does the tax cycle work around month-end closing, year-end closing and balance sheet? A little insight for those starting their first company. What taxes are there? Simple explanations, definitions, tax optimization, an insight into taxes.

• Taxes: List