It is certainly feasible over the long term, but I still find the loan quite high for your current income.
If I add up your costs, I come to an average of €1810.
In addition, there is the installment of €1257 and estimated incidental costs of €250. This adds up to just over €3300. In the short term, your salary would be sufficient.
Not taken into account are the costs for the 2nd child, holiday expenses, childcare costs, and reserves for the house.
Also, especially in the first two years, the initial purchases in the new home should not be underestimated (garden tools/accessories, patio furniture, shelves, tools, plants, sunshade, sandbox/play tower).
On the other hand, in addition to your net income, there are also 2x child benefits, currently the wife’s salary or then parental allowance available. To reduce the remaining debt to a bearable level and not pay into retirement, you will have to make a few extra repayments.
You should also consider how things will continue after the 2nd child and answer the following questions yourself.
- The wife’s job is currently only temporary. Does she have chances to work more again? If yes, what salaries are to be expected?
- How is your salary development? Have you already reached the top, or are larger salary increases still to be expected?
- What is the childcare situation, and how much does childcare cost where you live?
- Is a 2nd car needed?
- Does the small reserve for the car only cover repairs, or is it large enough to buy a replacement vehicle?
- Are there additional monthly costs due to the house construction? Life insurance/disability insurance?