Construction financing - mortgage instead of equity?

Then they would be the first parents...

Well, if we pay them interest, then they have to pay taxes on that interest.

As far as I know, the land charge registration on your parents' house is not a single loan of 50k€.

Rather, it is counted as the total land charge for your financing. Meaning if something happens and the foreclosure doesn't bring in enough money because too little has been repaid, prepayment penalties come into play, etc., your parents have to cover the entire missing amount immediately; there’s no monthly repayment of 300€. And if they don't have that money ASAP, they also go into foreclosure. That's why such arrangements are problematic.

The idea that your parents take out 50k€ for you is much safer in case of emergency.

But all purely hypothetical.

Okay, then I have to discuss this in detail again with the gentleman from Interhyp. Are you sure it’s not a single loan? That's how I understood it.

Well, I wanted to keep my parents out of it.

Why?

Because I know them, and at every second barbecue the topic "gratitude" would come up.

Bad for you
No kidding, I know my parents too. It would be different with us. (Not to mention that I would be infinitely grateful to them anyway.)

Well, if we pay them interest, then they have to pay tax on that interest.

Okay, I have to discuss that in detail with the gentleman from Interhyp. Are you sure that it wouldn't be a single loan? That’s how I understood it.

Bad luck for you
No kidding, I know my parents too. It would be different for us. (Not to mention that I would be infinitely grateful to them anyway.)

Ask , he knows about such things.

Only when it comes to the worst case are all loans called due.

Well, if we pay them interest, then they have to pay taxes on that interest.

I don't know anyone where that just runs as cash in the pocket. Formally, of course, you are right.

Okay, then I have to discuss that in detail again with the gentleman from Interhyp. Are you sure that it wouldn't be a single loan? That's how I understood it.

Of course, it can also be a separate loan. One component of several. In the end, though, it doesn't matter. If you crash, your house is not enough to cover the repayment of ALL loans, then the parents' house will simply be auctioned off. The bank doesn't care.
But the bank could also auction off the parents' house first. That increases the pressure on you and your parents massively. The bank can choose what it does. Or it auctions off both in parallel. Or whatever...

My plan would have been to rent out our house if all else fails and thereby definitely continue paying the installment. Am I being too naive?

Just as a reference: together we earn about 4,800 euros net, but from that nearly 500 euros go for 2 private health insurances.
The installment the Interhyp advisor is now assuming is 1,160 euros, which would be a blended interest rate of 0.91% with an equity contribution of almost 10,000 euros and the 50,000 euro mortgage and a fixed interest rate period of 15 years and a 5% special repayment option.

And on the topic of cash in the pocket: difficult, we want to keep our civil servant status

And on the subject of cash in hand: Difficult, we want to keep our civil servant status

If you get along so well with the parents, just skip the loan agreement and transfer a monthly amount. Seems true that civil servants aren’t really pragmatic

My plan was to rent out our house if all else fails and use that to definitely continue paying the installment. Am I too naive?

Yep. If you can’t pay your installment and have to rent out the house for that purpose (actually paying taxes on it then), what will you pay your rent with? And why do you still want to keep the house if you can’t use it anyway? Then there’s the emotional factor. Simply giving up the house is so hard for many that they just live there until the new owner comes with an eviction notice after the foreclosure sale. They don’t even let an appraiser into the house. It doesn’t have to come to that, but the heart is already attached to the house and many simply miss the right time to let go.

Just for orientation: Together we earn around 4,800 euros net, but from that, about 500 euros goes to 2 private health insurances.

I haven't gone into your financial situation at all. That's okay. It will just get tighter with a child. Just forgo the special repayment and pay off more.