Are banks granting loans more restrictively?

We don’t happen to work at the same bank :D

Who knows... But I believe this line of business didn’t look that bad at most credit institutions in 2020. Although, to be fair, the panic about the deadline for the Baukindergeld certainly helped to bring financing agreements forward into 2020. If this is really discontinued on March 31st, I’m curious how prices and demand will develop. This could well lead to more rejections if the financing gap left by the Baukindergeld cannot be filled otherwise.

Same here with us, best year ever. Why? Baukindergeld, refinancing old loans at better conditions + top-ups because it's "cheap," increasing loan volumes per credit since prices keep rising.

For every financing, there is always a bank & solution. Some banks lend according to standard, others take the risks and do the "bargain basement." In another forum, a bank is currently being criticized that a broker you all know doesn’t like. That broker is known for brokering "hot chicks" loans and probably always sells his grandma as well :)

We have also had the first conversations (local banks) and did not get the feeling that the banks do not want to. Rather the opposite. All of this with 2 secure jobs with low to middle income, but a bit more equity.

We have also had the first talks behind us (local banks) and did not get the feeling that the banks are unwilling. Rather the opposite. All this with 2 secure jobs with low-medium income, but a bit more equity.

Hello Michilo,

can you roughly quantify the low-medium income? Just interesting, because here you mostly read about higher incomes and my partner and I together have "only" 4100 EUR net per month (special payments not included). Next week is our first appointment at Dr. Klein and we are already very curious about what will ultimately come out of it. Equity is at 55 K EUR. Sufficient for additional purchase costs - unfortunately no more.

We (the bank) had the most successful year in construction financing ever in 2020, that much is already certain.

People will see that differently if/when too optimistically granted loans become non-performing. Unemployment will rise in 2022, many entrepreneurs have been heavily burdened by business losses for months, and it is unclear how long this will continue – usually, more loans also default then.

If necessary, at the beginning with only 2% repayment, also completely crazy.

Those who repay are cowards (duck and cover)

can you roughly estimate the lower-middle income?

We are at 2.5k€ + 2k€ (+ respective special payments). So low for the forum, we think it's good :) Equity capital is at 100k€ (very frugal + small gift) We indicated a desired rate of 1500€ (1/3 of the household net income) and for our example property we were at 520k€ financing (+ the 100k€ equity capital). We already found that enormous, the average repayment is 2.5%. We find that too low. But the bank advisor said that with this rate and financing amount there is still plenty of room to go up. However, we will go in the other direction and build smaller, otherwise we cannot sleep peacefully. Our example property: plot 600m²*200€/m², house 140m²*2500€/m², basement 60k€, garage 30k€, outdoor facilities 20k€, ancillary building costs 40k€