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International Property Financing - Chances for the German Pfandbrief

01/10/2013
Dr. Wolf Schumacher and Norbert Herrmann

The German Pfandbrief Act permits Pfandbrief Banks to use real property liens both on domestic properties and on real estate in various other countries to cover Mortgage Pfandbriefe. The Act thus enables not only different business models in regard of the property type that is being financed but also in relation to the degree of international orientation. What these business models have in common is access to the Mortgage Pfandbrief as a cheap refinancing instrument that has shown itself reliable even in the most turbulent times on the financial markets.

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