We present the development of Ag/Ge based ohmic contacts to n-type InP with both low contact resistances and relatively low optical losses. A specific contact resistance as low as 1.5×10−6 Ω cm2 is achieved by optimizing the Ge layer thickness and annealing conditions. The use of Ge instead of metal as the first deposited layer results in a low optical absorption loss in the telecommunication wavelength range. Compared to Au based contacts, the Ag based metallization also shows considerably reduced spiking effects after annealing. Contacts with different lengths are deposited on top of InP membrane waveguides to characterize the optical loss before and after annealing. A factor of 5 reduction of the propagation loss compared to the conventional Au/Ge/Ni contact is demonstrated. This allows for much more optimized designs for membrane photonic devices.