Financing - Are we getting reasonable terms from the bank?

Hello everyone,

my wife and I want to have our dream house built in 2016. Since some of you probably know a lot about this, we just wanted to get some feedback.

Me
Self-employed for 3 years, average €6,000 net

Her
Parental leave €500 net
In addition, my wife is currently attending master school (hairdresser)
Her shop will also be part of the house

The plot can be purchased from mid-January €95,000

The house will cost around €500,000, construction is planned for May/June

Equity is unfortunately quite low, €10,000

The loan will then be about €600,000

We can pay €2,000 per month, term can be 25-30 years.
Annually, €10,000-€12,000 in special repayments can be made.

Do you think we can get reasonable conditions from the bank with these data?

Thanks in advance.

Hello everyone,

my wife and I want to build our dream house in 2016.
Since some here probably know a lot about this, we just wanted to get some feedback.

Me
Self-employed for 3 years, 6,000€ net on average

Her
On parental leave 500€ net
In addition, my wife is currently attending a master school (hairdresser)
Her shop will also be part of the house

Land can be purchased from mid-January 95,000€

The house will cost about 500,000€, construction start is planned for May/June

Equity is unfortunately quite low, 10,000€

The loan will then be about 600,000€

We can pay 2,000€ per month, term can be 25-30 years.
Annually, 10-12,000€ extra repayments can be made.

Do you think with this data we will get reasonable conditions from the bank?

Thanks in advance.

In short: Forget it ;)

I am self-employed (>10 years), significantly higher income. Wife in public service. Equity > 300,000 EUR. Reserve: > 100,000 EUR.

Loan: 500,000 EUR. Without my wife in public service we probably would not have gotten the high amount. But I don’t know for sure. That’s how it sounded. Regardless: If your self-employment is not set in stone (and such a thing basically does not exist)... I wouldn’t even dream of thinking about a 600,000 EUR loan. Your problem: No equity. 10,000 EUR with that amount is basically equity of -20,000 ;) That is even less than zero. With 6,000 EUR net you quickly get 100,000-200,000 together. Then you only need a 400,000 EUR loan and everything looks much better.

My self-employment is more or less set in stone.

It would be nice to have more equity left, but I have repaid 2 loans and unfortunately had to pay heavy taxes for 2013, 2014, and 2015, precisely because of the self-employment since 2013. Otherwise, over €100,000 would be available.

Then I don't understand your problem if you can save €100,000 in 2 years. Then save for the next 2 years and build then.

Alternatively, you can already buy the property (if it has no building obligation).

"Back taxes"? And almost 100,000 EUR as well? What did you do with nearly 300,000 EUR? You should probably reconsider your handling of money first. With such a tax amount, an appropriate monthly prepayment should also be a matter of course.