Experience / Opinion on home financing with a high loan amount

W

Yes, very brave, a lot of risk and probably little house for the price. But overall, it will work out. Do you really want that though?

How long you should lock in interest rates always depends on the calculated remaining debt. How high would that be for you?

What exactly do you mean by a lot of risk? What do you think the risk consists of?
And why should it be little house? Thank you

Because after the end of the fixed interest period, a high remaining debt may have to be refinanced at the then prevailing market interest rates, and this interest rate is unknown, while today's interest rate level is historically low and should be secured for a long time.

The lost repayment effect with the assumed same rate in this case due to the slightly higher interest rate is not so high as to necessarily justify the 15 years.

Well, I see a nominal 1.5% fixed for 15 years, it's even a Berlin bank, but also with the option to change the repayment rate.

I see this very critically. The financing is extremely tight and so is the calculation. I bet anything that you won't get the house at the calculated price. There will still be some costs hiding, and I would plan at least an additional 10%, rather 20%, buffer for unforeseeable or not included costs in the price.

2.5% is not a low repayment rate.

2.5% is a low repayment rate. The OP even wants to reduce it. Most banks want at least 2% to be repaid. With 2.5%, there is still a very large remaining debt to be extended. Since my crystal ball is broken, I cannot say what the market interest rate will be then.

They do not want to reduce, but actually pay more now and then reduce to 2.5% later.

2.5% is a minimal repayment. The OP even wants to reduce it.

No, they want to increase it.