Bank loan and loan-to-value - is financing affordable?

Hello computer scientists,
my wife's secondary occupation will be taken into account since it is an officially registered business and has been operated for many years. On paper, it is only EUR 200 monthly, but she is a group consultant with about 10 employees and a company car provided free of charge. For the bank, the EUR 200 are also not very significant; the requested financing is secure. It is more about our actual living situation and not standardized debt service calculations (which bank would, for example, automatically assume annual savings rates of EUR 6,000 solely through life/pension insurance?).

Hello Musketeer, aside from the fact that my thread was actually started about the viability and sensibility of our financing structure/debt service capacity ;), banks usually offer the "good" conditions for the first-ranking loan because a cheap refinancing is possible for it (e.g. covered bonds). For the subordinated KFW funds, the bank does not need expensive refinancing; it only passes on the KfW funds to the end customer. P.S. I work in the banking industry! Regards Nordanney

... aren't there any further assessments or opinions??? :confused:

Hello,

no one will be able to give you the correct answer. Whether it is financially feasible, you have to check entirely on your own. We have previously placed the additional burden on a savings account and checked if we can manage with the future installment. Always think about unforeseen bills, such as a defective washing machine or similar.

I am not a banker, but I agree with my predecessor. Who knows which claims you live by. I consider 1300 for a household of 5 people to be tight. Children go to school, class trips and sports clubs come up... But somehow everything can work out. Usually parents can step in for the broken washing machine or give money gifts later. But you should only plan the fixed income; every bonus should be treated as a bonus (for example, in an extra account for extras). In 15 years, the first two children will be out of the house, who knows whether they will study (you pay) or stay in your house and contribute something from their apprentice salary. Tupper will also expire at some point... isn't it already out?! Some kind of "fashion" thing always comes along again, where your wife can establish herself as a good saleswoman... Maybe you will also be phased out in working life... You just don’t know any of this now. Can you even plan financing for 25 or 30 years? On paper, certainly, but it always turns out differently...

Is it even possible to plan a financing over 25 or 30 years? On paper certainly, but things always turn out differently...

I think that is correct, but unrealistic. Hardly anyone is done with their property much faster than 25 years.
Besides, rent is lifelong, meaning if I have to tighten my belt a bit for 25 years but then live rent-free in retirement... that works.

By the way, interest rates don’t matter here!
Sure, you pay a lot of money to the bank, sure the interest rates on long financing can be quite a burden... but rent = 100% interest without anything in return.

One should not forget that.

To the OP:

I don’t see the topic of loan-to-value, it’s not clear to me either, details are missing.
But I see the ratio of income to burden as feasible.
With three children not "easy," but doable.