480,000 loan too high, experiences?

Even before building the house, I have, of course, high disability insurance and also high life insurance. I currently pay about 400 EUR per month for disability insurance + life insurance + daily sickness allowance.

Regards, Steffen

To be honest, that doesn’t seem that high to me. One should still check whether that fits with such a mortgage amount.

Sylvia

What? 400 bucks for the insurance. Not much?

That sounds like a very good coverage to me...

Don't worry.. the coverage is sufficient The biggest risk unfortunately cannot be insured (poorly performing business).

What? 400 bucks for the insurances. Not much?

That already sounds like a very good coverage to me...

Unfortunately, in my professional experience, I often see people who have earned their living as self-employed and after a traffic accident/fall from scaffolding/a serious illness are no longer able to work long-term.
Disability daily benefits insurance (KTG) runs exactly until the trust doctor of the private health insurance (PKV) decides that occupational disability (BU) now applies.
Then very often the real fight with the BU insurance begins. If you’re unlucky and have to go to court, it takes about 2 years. That can be a very long time with almost no money if you have a ~2000€ rate.

That’s what I meant by that. You can usually bridge normal living expenses somehow with family/savings.

Sylvia

Ok... Stress with private health insurance [PKV] and disability insurance [BU] cannot be ruled out. My approach here: repayment only 1% (rate thus at about 1100 EUR) and always a reserve for 2-3 years bridging. The actual repayment takes place via special repayment. There is nothing against that, right?

Ok... Stress with private health insurance and occupational disability insurance cannot be ruled out. My approach here: repayment only 1% (rate thus about 1100 EUR) and always a reserve for 2-3 years bridging. The actual repayment takes place through special repayments. There's nothing against that, right?

We did it similarly (both freelancers)
2 years interest and repayment + minimal living expenses + insurances were and are kept in an otherwise untouchable account for the worst-case scenario, which we hope will never happen.
In addition, a business interruption insurance covers rent and personnel costs for 1 year.
After that, a decision would have to be made anyway.

Since we are already somewhat older, we repay significantly more, but have in the contract that we can change the installment amount 4 times during the 10-year full repayment period. The bank was initially not enthusiastic about that, but after appropriate explanation it was possible.

If the worst-case scenario does not occur, we have reserves for repairs, which are likely to be necessary for a used property after 10 years.

Sylvia