Assessment of financing offer / subordinated loan / repayment

I would say exactly this to the consultant: "Dear consultant, you can shred the offer. Because I will not accept it."

And then you can see how she reacts.

And now to the rest: That such subordinated loans are made is rare to begin with!!! And if it is really done as an exception, then it should also be a proper subordinated loan, and not a do-it-all loan with conditions that are beyond good and evil. In your case, the bank is charging over 6% margin for a subordinated secured loan! Such margins are at most still usual for completely unsecured ones. You can even get a car financed for 3-4%. So shred it...

I can somehow partially understand the determination of the lending value, but still, it is outrageous to present the financing this way.

Either you find an offer that is significantly better (or if not, leave it!)

The "do-it-all loan" alone costs you 11,400 euros in the first 10 years and disqualifies you from all other loans for the near future.

Unfortunately, you did not provide more information, otherwise one could have illustrated what proportion of the costs these 30,000 euros represent.

And again: This is not normal, no matter what the consultant wants to make you believe.

Thank you for your feedback. I will get back to you shortly with the details, maybe you / you all will have further tips then. In addition, I will make appointments directly with 2-3 banks on Monday regarding a financing offer.

So, here are the details once again. I'll spare you the story of how we got the house. The purchase price will amount to €185,000, slightly above the actual value, but the intangible value from having the parents next door compensates for us. So, as often, a compromise.

Of course, additional purchase costs come on top of the purchase price:

Real estate transfer tax (6.5%): €12,000
Notary (1.5%): €2,800
Broker fee omitted (actually one was commissioned, but the house was offered to us by the seller beforehand, though we took some time to think)

So initially, costs of just under €200,000.

Theoretically, one can move into the house right away, but the roof will need to be done in the next few years, and since we want to remodel the roof a bit anyway (move the stairs, create a small extra bathroom), we want to do everything at once.

Currently, we roughly estimate €45,000 in costs for the renovation (including things in the garden). The roof itself will of course be done by the roofer, the rest of the renovation will be done by ourselves (my dad built his house almost by himself). Due to the self-labor, during the financing discussion we simply stated that €55,000 will be needed for the renovation, €10,000 of which is self-labor. Of course, we are now starting to obtain more detailed quotes in order to determine the exact costs, which will naturally form the basis for the financing.

We have a few thousand euros in the savings account and/or an ETF fund, but we would like to keep that as an emergency fund. The car was newly purchased. Additionally, my wife has a Riester fund (Uni ProfiRente 4P) with €10,200. Initially, we thought of including this as equity, but our advisor discouraged this for tax reasons (it usually doesn’t pay off). What is your opinion on this in this case?

Of course, we will not buy if there is no reasonable financial solution. I really hope that something decent can be found.

If any information is missing, just let me know. Thanks a lot in advance!

That's all well and good, nice extra. But when it comes to financing, hard facts count. You mention a credit limit of 1,000 euros. Is that your gut feeling or do the banks see it that way based on your income situation? Would a grant or loan within the family be conceivable, so that you don't have to manage 120% financing?

Hmm, the DSL Bank. Sorry if I ask like this, but is it possible that your income/expense situation is not so good? Because only then does the DSL Bank come into play. At least that's what a friend of mine who works as a real estate financier for Deutsche Bank told me.

Since you apparently have no collateral at all, the selection of possible financiers is limited to a minimum anyway. So the interest rate for the large amount is actually quite low.

You actually don't have much choice, so you can gladly suggest the shredder to the lady, but then you probably won't get any financing.

Hm, income / expenses actually look good. About 3200 euros net every month, expenses just the usual. However, I have only been working full-time for a short time, previously still studying (but I have been with the company for 3 years). As I said, I will inquire at other banks tomorrow.

What do you think about the mentioned Wohnriester? Is it worth using?