Financing 600,000 Euro terraced end house

Hello,

by chance we came across a property in the town of our choice (in the immediate vicinity of Frankfurt a.M.) and are now wondering from which income level a bank would finance something like this for dual earners assuming no equity?
With the usual calculation of 500 euros per month per 100,000 euros loan, you come to 3,000 euros monthly burden. Assuming the woman earns 2,000 euros per month and will shortly contribute nothing for one to two years due to family planning for 2 children. Roughly how much would the man have to earn so that children, vacation and the bank’s approval are compatible?

Thank you!

There is a rule of thumb that says you should contribute a maximum of 30% of household income towards financing.

I'll let you do the rest of the calculations.

And another rule of thumb says that the loan installment should not exceed 40% of the net income.

And now we have a mess: So what is right?

It can't be answered that generally. Some banks use flat rates, others do classic income/expense calculations.

With the 3000 euros, you are already well oriented regarding the installment.

On top of that come additional costs such as electricity, heating, taxes, insurance, water, garbage, etc... Then your own expenses for food, hobbies, insurance, saving, car, clothing, furniture, etc...

No one here knows your lifestyle habits. So there is no solution to your question.

So: Do you trust yourself with a 3000 loan installment based on your salary?

How much cold rent do you currently pay and how much do you save on savings accounts or daily money accounts?

Our cold rent is about 800 euros and we live frugally. No exclusive hobbies or extraordinary expenses. The car is a four-year-old small car paid for in cash that still shows no signs of wear. There are more such rules, for example that the installment should also be able to be borne by the other partner alone. That is definitely out of the question for us. I generally wonder to whom the bank allows such a thing, that is, who all the competition is for such an endeavor. Personally, I would prefer a minimum installment of 2000 euros and then increase it with special repayments to an average of 4000 per month. But I am not clear what penalty fee the bank would charge for this flexibility. With that rate, we would certainly be finished in less than 20 years (more like 16). So I would set the fixed interest rate period to 10 years. But my real question remains, from what salary of the husband will the bank say: Yes, we will finance this for you?

How much do you save every month? How much equity do you have? Regardless of whether you want to use it or not.

That entirely depends on the ruthlessness of the bank employee. Financing a property for €600,000 for someone who, despite a dual income, brings no equity at all, I find per se ruthless regardless of the husband's income. Unless there are appropriately other securities present. No one here can surely answer your question, just give it a try...