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1 – Bank statements (Kontoauszüge)
What are they?
A bank statement is a detailed overview of all transactions on your bank account over the last 3 to 6 months. It shows your income, expenses, and regular transfers (e.g. rent, instalments, insurance payments).
Why is it important?
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It shows the bank how regular and stable your monthly income is.
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It reveals your current financial commitments, such as loan instalments or fixed standing orders.
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It forms the basis for the bank’s household budget calculation (Haushaltsrechnung).
Tips when submitting
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Always provide complete and clearly legible statements (no missing pages).
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Avoid unusually large or unexplained cash movements shortly before submitting your application.
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Keep your statements well organised and up to date, both in paper and digital form.
2 – Employment contract (Arbeitsvertrag)
What is it?
The employment contract is your official contract with your employer. It defines, among other things, your working hours, salary, duration of employment, and the type of employment (full-time, part-time, permanent, fixed-term).
Why is it important?
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It proves that you have a stable and ongoing source of income.
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It helps the bank assess your professional stability and thus your ability to repay the loan.
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If you hold a permanent (unbefristet) contract, your chances of getting approval are usually significantly higher.
Tips when submitting
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Provide a current and up-to-date version of your employment contract.
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If your contract has recently been extended or changed, attach any addendums or written confirmations from your employer.
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If your income is variable (e.g. commissions or bonuses), include additional evidence showing your average annual income.
3 – Schufa report
What is it?
The Schufa report is a credit report issued by the Schufa agency. It contains your credit score (Bonität), information on other financial commitments, and your previous payment history.
Why is it important?
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It gives the bank a comprehensive picture of how reliably you have repaid debts and bills in the past.
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It reveals any late payments or negative entries that might influence the lending decision.
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It is used to determine interest conditions and the level of risk for the bank.
Tips when submitting
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Request your free Schufa data copy once a year (Datenkopie nach Art. 15 DSGVO) to review it.
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Make sure that all data is correct, and have any errors rectified before applying for a loan.
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If you have older negative entries, be prepared to explain the background in a credible way.
Additional documents the bank may request
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Recent payslips: usually for the last 3 months.
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Tax assessment (Steuerbescheid): especially for self-employed or freelance workers.
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Contracts for other loans: so the bank can see your current obligations.
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Pension notice or proof of pension payments: for retirees.
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Rental contracts or proof of rental income: if you receive additional income from renting out property.
Risks and important points
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Incomplete documentation:
Missing or incomplete documents can lead to delays or even to a rejection of your application. -
Full transparency:
Providing misleading or incomplete information may be regarded as fraud and can result in immediate refusal. -
Careful review by the bank:
Banks check every document very thoroughly, so careful and accurate preparation is crucial.
Tips before submitting your application
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Prepare all documents in advance and sort them in a clear, logical order.
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Keep both paper and electronic copies of every document.
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Consult your financial adviser or mortgage specialist beforehand to ensure that you are truly ready to apply.
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Proactively explain any unusual notes or irregularities in your documents to prevent misunderstandings or suspicion.
Conclusion
Preparing complete and accurate documentation is a crucial step when applying for a loan in Germany. Bank statements, your employment contract and the Schufa report are the core documents that banks rely on when assessing your creditworthiness.
By submitting these documents in a well-organised and transparent way, you can significantly increase your chances of approval, secure better interest rates, and move a big step closer to your financial goals with confidence and security.
The editorial team of this website makes every effort to provide accurate information based on extensive research and consultation of multiple sources. However, errors may occur or certain details may later turn out to be uncertain or outdated. For this reason, please treat the information in our articles as an initial point of reference and always consult the relevant authorities or qualified professionals for binding and up-to-date advice.
