Financing a single-family home beyond retirement?

But due to the effect of saved interest, this means a significantly shorter term than repaying at 3% today (8% interest and 1% repayment is not a 30-year term!). You wouldn't even need more than 1% repayment to be faster than most homeowners today.

Well, that's called life. Should I give up the house today because I might get divorced tomorrow? So what, then the house will simply be sold if I can no longer afford it. But until then, I had at least a good time.

We Germans are simply too stuffy and inflexible.

Regarding the first part: the rate is still twice as high at 8% interest and 1% repayment as at 1.5% interest and 3% repayment... you have to be able to handle that first.

And about the second part: I agree. I don't want to come out of this with losses, but if something should happen... for example, in 13 years I can't get follow-up financing because I'm currently unemployed or sick... then I will have lived nicely for 14 years, with the kids – who will probably be out of the house in 14 years. And I can certainly pay off the remaining debt easily. It's not the plan, but if it should be so... then it is so.

Regarding the first part: the installment is initially still twice as high with 8% interest and 1% repayment as with 1.5% interest and 3% repayment... you have to be able to manage that first.

Sort of, double in % yes, but not in absolute numbers. Back then, houses were not as expensive either (unique architecture, energy saving regulations, smart home, high price increases, etc. say hello). People could afford a house just as much as today (or not).

Yes and no, double in % yes, in absolute numbers no. Back then, houses were not that expensive either (unique architecture, energy saving regulations, smart home, high price increases, etc. come to mind). People could afford a house just as much as today (or not).

Today, however, you also have a higher income. At least when I look at what our tariff was like 25 years ago and now (with the same classification).
If I had to bear a 9% annuity, it would certainly be completely impossible to finance a house.

If I had to bear a 9% annuity, it would definitely be impossible to finance a house.

Today yes, in the past no. The income - house price ratio was better back then.

Today yes, earlier no. The income-to-house-price ratio was better back then.

Exactly - higher house prices are only one side of the coin - the much higher land prices are the other.

Well, I wouldn’t feel comfortable either if our mortgage extended into retirement age. Because those are often the houses that fall into total neglect since you can’t afford to do anything to them. Not to mention the additional costs you pay in interest for the same property. We will pay somewhere between 20k and 25k in interest and fees for our house, depending on how we arrange the follow-up financing. The 25k is capped in the worst case. Well, we only had to take out a 220k loan and, for our new build project 5 years ago, we paid well under 400k in Bavaria including land, exterior work, and all additional costs. Our income is lower than most forum users here, but we manage well with the current rate of about 1200 euros. We will probably have paid it off by 50, or stretch it a bit until maybe 53 if interest rates stay low, because then we won’t use our home savings contract with 1% credit interest and will take out a slightly higher loan for supplementary financing. It’s clear that you can hardly get anything reasonable for that money today, we were really lucky, but having to pay off until retirement is something I can’t imagine, though it could also be because our pension won’t be the most generous. We already live well now with hardly any sacrifices, but we also think carefully about what we invest in. We don’t always need the newest and best phones, TVs, or cars, although I do drive a new company car, and we go on bigger vacations at most once a year. We often invite friends and family for barbecues, and there’s never cheap meat from the discount store, only from the local butcher. Everyone has different priorities in life, but you should try to stay grounded and think carefully about what you can afford and what you cannot.