Financing a single-family house with 170 sqm

Hello!

I am very uncertain about our financing, which is why I urgently need feedback. My husband is more relaxed about it, but I am more of a security type.

A few key data points:
Purchase price of the plot: 112,000
Planned single-family house: 380,000 for 170 sqm (we are not yet final with the offer, but that is our upper limit; we will not reduce the floor area because we need 2 offices and 2 children's rooms)
Special feature: deep foundation with additional costs of 25,000
Total: 610,000 with all the bells and whistles, not all listed
Income: 5,000 without special income

Financing offer:
0.95% and 1.04% KFW and Hypo
20 years fixed interest
Installments: approx. 1800 euros total for the first 10 years, then residual debt of 46,000 KfW which we would want to pay off then, after that theoretically it continues with 1200 euros, but a residual debt of 170,000 euros would remain at the end if we did not change the installment...
Repayment change: once after 10 years
Repayment should be finished after 22 years. We are already older.

What bothers me about it...:
It’s all too much for me, but concretely... of course we could afford it, but I want less risk. It doesn’t have to always stay like this and I don’t need that much to be happy.
- I would like a constant rate but also the option to change once in the middle. Maybe rather around 1700 euros. Do you think that’s too much? Is everyone paying that much nowadays? We currently pay 1800 euros rent for a single-family house...
- Now you can also get the KfW bonus as a grant only. Has anyone had concrete experience with that? That would make it possible to have only one loan? We were not offered that option but have now read about it.
- What is your feeling about what I describe?

Total: 610,000 with all the bells and whistles, which are not listed

Please break that down. I suspect there’s more to it.
And yes, it is indeed quite a lot and high.

We currently have 1800 euros rent for a single-family house...

Flat rate? Or are the additional housing costs coming on top? For a single-family house, you should also expect about 350€ in additional costs.

The amount of credit you want to take out is missing from your list. Please add equity so that the financing can be considered.

yes, just reduce the repayment, but then you will also pay off for longer^^ you are funny

Important information is missing for me to be able to give my assessment:

- How old are you and how old are your children?
- What kind of jobs do you have (possibly crisis-proof ones like civil servants?)
- How much equity are you using in the financing and how much buffer do you still have left?

I don’t really understand the KfW loan as a "bonus" or as just "1 loan" – please explain again exactly what you mean by that? The KfW loan is ultimately one component of your financing.

After 10 years your repayment rate is significantly lower, correct, since by law you can repay any loan after 10 years and thus only need to take out a smaller amount. So the "relief" definitely only comes after 10 years. But it also always depends on how long you can/want to pay it off --> lower rate = longer repayment.

What I would recommend to you is several free repayment rate changes to simply undermine the security idea. Negotiate this with the bank – you will certainly get it.

€380,000 for 170 sqm and a basement I consider to be tight. In which region are you building? Be careful that additional costs won’t come up!!

€610,000 total costs for a single-family house of that size --> pretty normal to be honest, rather too low! The question now is how much of that you need to borrow (please definitely provide the exact key data, including ancillary construction costs etc.).

Difficult to say with your information... I would have said in general that the amount with children + older age and the income could be quite challenging – but as I said, provide us with some more key data, then we can help you better :)

Is the term "bauseits" still mentioned somewhere in the offer and is that covered by the Pipapo, which is not listed? What is the plan B if you don’t want to increase the costs but also don’t want to reduce the square meters? As it is written there, you must live in a very inexpensive area and have low expectations.... It would be nice if you could get back to me :)