Advice - is life insurance compulsary for a German mortgage?

[hambleyhouse]

Hi there, I wondered if anyone out there could assist me - is it compulsary to have life insurance in place when making a mortgage application with a German bank (to purchase a property in Germany)? In the UK I know it would be nigh on impossible to obtain a mortgage WITHOUT such insurance to ensure that the loan would be repaid in full, however I am curious about the position in Germany and/or if it 'as' compulsary.
Any replies/experience would be very welcome,
Thanks

 

[aaronlove]

It's not possible. Unless you can provide you with stable income report to the bank.

 

[hambleyhouse]

Hhhmmm, thanks for that - confirms what I thought. My sister and husband bought a property in Germany a few years ago, with a mortgage through a German bank. at the time, both were in stable employment. It appears that they were not required to take out life insurance cover (and signed a disclaimer to that effect??).
My brother in law sadly passed away a few months ago - they had returned to the UK by that point with 2 very young children, renting the property out. With no life cover in place, this leaves my sister in a very very difficult financial position as you would imagine, left to bring up 2 children etc etc.
I just find this position (i.e. no life cover required) questionable - here in the UK lenders insist on proof of means to repay the loan etc, and in the current financial climate I would expect it to be impossible to sign any 'disclaimer' etc.
Would anyone have any experience in this field, and whether there is any consumer advice contact, or indeed any German equivalent of the Financial Services Ombudsman that contact could be made with regarding querying any 'mis-selling' etc?