802k€ for house including additional purchase costs with 600k€ loan - Financeable?

I am curious whether the bank will recognize invested equity. Because that can just disappear. Fixed special repayments are not planned by the bank either. They are nice-to-have for you, but the bank looks at whether you can manage the repayment itself.

So we have comparable income but at around 500k the bank would have stopped giving us credit.
That’s why I find 600k pretty questionable for you.
Dividends didn’t really matter as income for us either. I don’t know how banks generally see that.

I also don’t understand at all in this context why you don’t want to contribute 140k equity?
We only kept a good 10k as an emergency reserve for a broken washing machine or something similar with roughly comparable starting conditions.

I’m not familiar with how more equity = better conditions or where more equity leads to no further interest rate changes. Currently we earn significantly more return with our investments than the interest rate on a home loan costs. That is our current way of thinking.


Outside of IGM and the middle class, something like that is quite normal.

@Zebra12
Absolutely – I don’t want to fixedly include bonuses/13th or 14th salary – who knows if the next employer will even pay that.
Thanks for the feedback

So:

[*]600k for our future situation (1 possibly 2 children) is too much
[LIST]
[*]e.g. include 100k more equity from the start and liquidate portfolios?
[*]500k more realistic?

[*]Does an apartment including additional rental income (at least €300/month + tax deduction possibilities) play no role for a bank?

I'll put it this way, we took out €418k at €5400, but our children are 9 and 8 years old and the expenses are starting again now. Up to the 2nd grade, just for childcare, it was roughly the cost of a new Passat in childcare expenses. So from daycare to kindergarten, costs dropped from €500 to €250 per month. The €250 was then converted into after-school care, which only ended last year.

You see, it's not about the equity. The income with children doesn’t even match the loan amount I needed 2-3 years ago, and we are basically constant when it comes to expenses.

Everyone is responsible for themselves. There is no recommendation from me for this project.

Above all, in addition to the bank installment, there are at least €400 monthly additional costs. So you’re looking at over €2.2k in expenses just for the house, right?

If you were to ask here about your secured income whether you should take out a 300k loan with maximum use of equity or a 400k loan along with credit-financed speculation, I would answer: "It depends on your risk appetite, personally I would prefer less debt."

But you are talking about 200k more loan, that kind of gambling is pretty irresponsible towards your future family. If no children were planned, it would at least only be your own future you are gambling with.

Now it fits. When children arrive and a party is part-time, the belts are tightened.

I'll put it this way: we took out €418k on €5,400, but our children are 9 and 8 years old and the expenses are starting again now. Up to the 2nd grade, childcare alone cost about the equivalent of a new Passat in care costs. So from daycare to kindergarten, it dropped from €500 to €250 per month. The €250 was then converted into after-school care, which only ended last year. You see, it's not about the equity. The income with children doesn’t even fit my building sum that I needed 2-3 years ago, and we are basically constant when it comes to expenses. Everyone is responsible for themselves. I have no recommendation for the project. Above all, on top of the bank installment there are at least €400 monthly additional costs. For the house alone, you’re looking at expenses of over €2.2k, right?

The €400 monthly additional costs are already included in the fictional balance with 1 child. Including all costs/additional costs, €2,640/month would remain, from which "only" the installment still has to be deducted and additionally about €300/month rent comes in from the granny flat. The DAX has made >50% return in 5 years, the Dow Jones almost 100% in the same period – what did you earn with your overnight money account? As I said, in Germany stocks are demonized and only for "gamblers"...