If you are planning to purchase property in Germany there are some key differences you should be aware of when it comes to mortgages in Germany.
Firstly, it is rare for German banks to lend more than 60% - 70% of the property value and they generally don't enjoy being asked to make small loans (say €40,000 or less). This means that any property purchase costing less than around €65,000 will usually need to be a cash purchase. Also, the value of the property is only one criterion the banks take into account - if you cannot prove sufficient income to service the loan (interest and repayments) then they won't advance the money no matter how much your deposit.
On the subject of affordability it is worth bearing in mind that any rental income you receive (and many people are buying investment properties in Berlin and other cities) will only count towards your income to the tune of 80% of the rental received. This is to take account of the maintenance costs you may need to pay for, taxes and other expenses.
Do not expect fancy financial instruments to form part of your mortgage either - German mortgages, especially for non-nationals, tend to be repayment only.
