Experience / Opinion on home financing with a high loan amount

Hello,

we want to build a house in the Berlin metropolitan area. The following key data
Total construction costs approx. €545,000
Of which the plot costs approx. €170,000
House costs approx. €300,000 (city villa, 162m²)
Equity capital €45,000
Monthly net income (joint) €5,500, both employed in the public sector
Loan amount €500,000, of which €100,000 via KFW
We have now received a financing offer with an interest rate of 0.8% for the KfW (interest rate fixed for 10 years) and 1.53% (interest rate fixed for 15 years) from a Sparkasse, the monthly loan amount would be approx. €1,650 with a repayment rate of 2.5%. Unfortunately without a flexible repayment rate. That bothers me a lot because we currently have no children and could therefore repay more. Especially at the beginning it is important to repay a lot. At the same time, I do not want to pay over €2,000 for the loan for the next 15 years. Should we have children and they are in a cost-intensive age, the money would then be somewhat tight. My partner has the attitude to already repay a lot additionally now via special repayments. But I find that a bit too optimistic because only 8% of all homeowners actually use this option. Unfortunately, the conditions with special repayments are relatively poor, so we are considering what the best alternative is.
We have also thought about running the Sparkasse loan only with a 10-year fixed interest rate (1.1%) and then agreeing to a repayment of 3.5% in the next 10 years. But then we have the risk in 10 years that both the KfW loan and the Sparkasse loan interest rate fixed terms end. Do you have any tips for us? Or can you share your experiences? Best regards and many thanks

300,000€ for 162m² is too little, or at least only for a very basic standard without extras. Have you calculated well here? The round sum does not sound like it. What about the kitchen, outdoor facilities, and buffer?

What other people prepay or not can be irrelevant to you, as long as you have the discipline and still do it. Therefore, rather pay 2% regularly, and put the rest truly into prepayments.

But how do you plan to approach the end of the 10-year fixed interest period of the KfW? You cannot prepay the KfW, and you will have a high outstanding debt in 10 years.

Hello, we have an offer from a house builder for €285,000, plus painter, extras, etc. €300,000. Additionally, we have planned €24,000 for the outdoor area. The kitchen is not included in the calculation, as we still have some savings with which we will buy the kitchen. Regarding the KfW, we are not yet sure; I would prefer to already pay a small amount into an extra account every month so that we can reduce the KfW amount somewhat at the end. My partner would prefer to put the money into the special repayment of the main loan....

Hello mirakuli,

Speckgürtel Berlin? Federal state Berlin or Brandenburg?

Are owner contributions made during the house construction?

Are parts of the equity in a [Bausparvertrag]?

How much have you budgeted for construction and additional purchase costs?