End-terraced house 485,000€ credit loan. Is house purchase financeable?

PS: Does your wife currently have the worse tax class? If you both are in I and you can switch to III, that's 300 more per month. At least.

You wrote your installment is €1,360 and repayment-free in the first year. If it is a KFW 55 loan, then the interest for €120,000 would be €72 in the first year and €563 in the second year with repayment. That means for me your installment in the second year is €1,851...

The financial advisor calculated everything so that we do not overextend ourselves with the monthly burden. The bank also sees no problems with the financing.

The financial advisor calculated everything so that we don't overburden ourselves with the monthly payments. The bank also sees no problems with the financing.

That's clear - they are salespeople after all. And if it is somehow feasible, everyone gets loans that they "don't overburden" themselves with. There is only one small factor that causes the purely mathematical "feasibilities" to collapse. That factor is life. Additional dining out? This is not taken into account by the bank. New washing machine or car? This is not taken into account by the bank. Lawn mower and garden tools? This is not taken into account by the bank. Weekend trip? This is not taken into account by the bank. Additional expenses for children - and there are many possibilities ;) . This is not taken into account by the bank. etc. Mathematically, you can make everything look good. But in real life it’s not quite that simple. You always have to keep that in mind and be truly honest with yourself. Do you want to "sacrifice" the rest of your life just for a property in case of doubt?

The financial advisor calculated everything so that we do not overburden ourselves with the monthly payments. The bank also sees no problems with the financing.

Well then you don't need to ask ;-) Rarely is there agreement here in the forum when it comes to financing. That should actually be a reason to think.

How much part-time work is your wife currently doing?

We have a 470k loan and currently still over 5k net income. However, as soon as we have children, the income will also drop into your range. We think it’s doable because my wife could work more again if the money isn’t enough. But we also both have family nearby who can help with both a broken washing machine and childcare.

Also, we have been able to live very frugally so far and accordingly have a lot of equity and therefore a significantly better interest rate than you.

Overall, it’s already tight for us and for you it’s even tighter. It really depends on how much you are willing and able to give up for the sake of the house.