Evaluate financing offer

Hello dear forum,

we would like to build our own home. It should be a detached single-family house. For this, we are calculating total costs including incidental expenses of €550,000. We have equity of €100,000, which means the financing amount is €450,000. We would like to repay about €1,600 - €1,700 per month.
ABOUT us:
He: 31 years old, net income about €3,700
She: 29 years old, net income about €1,200

We already have one child (1 year old) and want at least one more.

First of all: Do you think this is realistic and doable?

We already have an offer: a mix of [Bausparvertrag] and annuity loan:

[Bausparvertrag]: €325,000 interest rate of 1.54% for 14 years and 4 months (savings period) and 2.85% for 13 years and 7 months (repayment period) --> total duration 27 years and 11 months
--> monthly rate €1,300

Annuity loan: €125,000 at 2.3% (10 years fixed interest period)
monthly rate --> €379

What do you think about the offer? I’m not quite happy with it yet...

Many thanks for your opinions.

If you manage to get a loan-to-value ratio of 79.99% excluding incidental purchase costs, then you would get an interest rate below 1.85% for a 20-year fixed interest period (annuity loan)? Otherwise, you are somewhere around a 2.00-1.95% fixed interest period.

I'm not a fan of building savings contracts. For the 10-year one, how much outstanding debt remains? 60k?

I would rather agree on everything over 20 years.

Whether it is feasible with your income, certainly. But whether you want to pay off around 2,000 with all additional costs is another matter.

Hello everyone,

Thank you very much in advance for the answers.

With the 10-year one, after 10 years about 100k will still remain. I really don't like that.

Actually, I should get below 80% loan-to-value. But I was told in the appointment that it doesn't matter.

Why do you rather advise against a building savings contract? Sorry, I am not very familiar with the details yet and am grateful for any help.

Hello everyone,

Thanks already for the answers.

With the 10-year one, about 100k still remain after 10 years. I really don't like that at all.

Actually, I should get below 80% loan-to-value. But I was told at the appointment that it doesn't matter.

Why do you rather advise against a building savings contract? Sorry, I am not yet familiar with the details and appreciate any help.

Where did you inquire about the financing?

Just ask the usual brokers, Dr. Klein, Interhyp, etc.

100k after 10 years

Cheers!

Was with Schwäbisch Hall in combination with VR Bank.