Buying an existing property shortly before finishing studies?

Hello,
I am new here in the forum and have a few important questions regarding the purchase of a property.

I am 33 years old, married, one child (the second child is on the way, my wife is employed until maternity leave) and I started a degree through the second educational track. This degree ends on 01.10.2016 and I will be 100% taken on by my current employer (dual study income currently 900€ gross) (oral statement).
Before that, I was already employed for 18 years and was able to build up equity of 30000€ (this is invested in a building savings contract with 60000€).

Now to my actual question, I am currently still renting and paying 390€ cold rent. I want to purchase a home after finishing my studies because the interest rates are really good.
Financially, I was thinking of a property around 160000€ and about 140m2 of living space. The tricky part is that I will probably first get a fixed-term contract as an employee in the public sector.
Does anyone know if there is a possibility to still get a loan from the bank?

I am grateful for any info, best regards Alex

So I had a similar situation with our property financing. I had my employer give me a letter certifying that my permanent employment after the probation period was very likely. That was enough for the bank at the time. Since self-employed people are also getting loans, I think it is generally possible if the loan-to-value ratio is not out of the ordinary - accordingly with a bit of a risk surcharge. If in doubt: ask your friendly bank advisor.

First of all, congratulations on the decision to pursue a continuing education degree after 12 years. Not many people have that courage.
My question: what does your Plan B look like if either the oral commitment is worthless or the contract is not renewed after two years? From the way the question is phrased, you apparently would not want to listen to any warnings from a neutral lender here, even accepting detours to get the capital.
By the way, your question is missing the woman – it reads as if you are considering financing alone without your family, even though your wife is probably currently the only stable source of income :)

Hello,

I dare to say that there is a shortage of very well-trained young employees in the public service... From this point of view

Larger institutions, I think, will not have any problems. One should already have a few months on the job. The only negative thing will be the entry (is stated on the pay slip) or self-disclosure. That flows into the scoring. Does your wife also work?

Hello, thanks already for the answers. Yes, my wife also works but will go on maternity leave in Sep (she has a permanent employment contract). I will start working at the youth welfare office in October and after about 6 months fixed-term contract I will get a permanent contract because I also completed the dual studies at the same practical place. I will make an appointment at a bank next week and get some advice regarding this. Thank you all

Hello Alex.

What speaks against continuing to save equity during the time you are still employed on a fixed-term contract? In my opinion, this has the advantage that your wife will also be fully employed again after the parental leave for the second child & you will then have significantly better conditions than is currently the case.

Without being able to look into the future, one can assume based on yesterday’s ECB decision that mortgage interest rates should remain attractive in the coming years & there is no reason to finance now at all costs. (Exception: you have already found your dream property)

Best regards.