According to German Economic Institute, home ownership in Germany is the lowest among EU countries, with a rate of approximately 45%. Hundreds of thousands of aspiring homeowners face the enormous complexity of the homebuying process and are priced out of the market.
Enter Berlin-based home financing startup Justhome which aims to solve this by simplifying key steps of the home buying process and helping customers to increase their budget. Operating in the German market with a total outstanding mortgage volume of €1.49 trillion, it allows buyers to compare rates from more than 700 banks and provides personalised financing solutions targeted at first-time buyers. The startup claims that customers get better financing terms and can access properties that would otherwise not be available to them.
In doing so, it has raised €3.3 million in pre-seed funding. The round was led by Target Global. The funding also saw the participation of early-stage fund APX, which is backed by digital publisher Axel Springer and Porsche and angel investors.
The funding will be used to further build out the company’s digital home financing platform and develop its own financing solutions.
According to the company’s CEO and co-founder, Johannes Fenner, nine out of 10 Germans below the age of 30 want to own a home in the future, an even stronger trend post-COVID. “We are determined to provide financial solutions to help this generation become homeowners in a way that is convenient and native to them: digital and self-driven,” he said.
Ricardo Schaefer, partner at Target Global, added: “We have increasingly observed the global appetite for more customer-centric and innovative home financing solutions. With Justhome, we found an extremely ambitious team that is really looking to shake up the market to address that demand.”