Financing commitment at the current time

2022-06-11 12:57:36

So I was at the bank last week because I was considering borrowing more on our house for another investment. Since our house is now valued by the bank at an incredibly high amount, that wouldn't be a problem. However, I would still get 3.3% interest, probably because it would then be considered as 'Modernisierung' for new construction.

2022-06-11 12:59:22

So the child benefit will probably not be enough for the bank as a flat rate per child. The 5500€ is basically not bad, BUT as long as you haven't sold the other house/apartment, you practically have no equity, only on paper. However, the bank cannot be sure that you will later actually achieve the price you expect. If I were the lender, I would think about it carefully and if I decided to give you the money, I would probably add quite a risk premium to the interest rate. Millionaires are probably rather few here, but income alone doesn't make a millionaire, it's also very much about the expense side.

2022-06-11 13:40:10

I can understand the bank well. I wouldn’t give any money either. There is too much risk. What if the house is actually worth less and there is less than 120k equity, what happens then? I fear a sale beforehand, that has to happen! How do you want to service two loans at the same time? Then you have with I see it the same way. If you can find a job so easily, then do it. Or is it perhaps a problem with four children? Is shift work even added? No advantage. Either you have income or you don’t. You clearly have no income. Zero euros. A really, really bad idea. The loan can be terminated! I believe the drama would have happened just the same.

I do think it was still easier a few months ago. Whether the thread starters would have gotten financing without problems, of course we do not know, but it definitely was easier with the lower interest rates and the - at least somewhat more stable situation. My financing advisor at the house bank, with whom I spoke last week about another matter as I already mentioned, confirmed that to me as well.

2022-06-11 13:45:28

Short task: Find the mistake.

Don't let yourselves be discouraged. Try again with other providers. But of course, you need to realistically know yourselves how much you can manage per month or what is possible.

2022-06-11 15:50:31

You have no choice but to keep trying. The banks make the rules that you have to follow. An independent financial broker will be able to roughly estimate which banks you have a chance with and will also know which flat rates each bank calculates.

And they don't care at all whether you don't need €300 for a car or if you are self-sufficient. Even if you live in a camper, they will deduct that. The only important thing is that, in the end, it stays in the green. And equity is a great security, but it doesn't change the household budget at first.

2022-06-11 16:17:24

There is none, €5500 plus child benefits for 4 children ‍♀

Ok, could you calculate that for me? I only get "just" €6400 anyway.

Similar topics
17.08.2013	Financing offer - Interest okay? Your opinion...	10
16.01.2014	Problems with bank - equity	10
05.10.2014	Building a house without equity	26
18.03.2015	Buying property feasible - Loan with building savings as equity?	12
22.06.2015	Land price = complete equity. Finance yes/no?	13
02.02.2016	It doesn't work without equity - experience!	109
15.09.2016	Financing without equity with security?	52
18.02.2016	Collateral value & equity	11
14.05.2016	House purchase: Financing (with/without equity)	24
21.02.2017	Is home financing possible like this? Alternatively, save equity for a few years	38
04.06.2020	Is building a semi-detached house sensible despite low equity with a long loan term?	79
29.08.2019	Construction financing - mortgage instead of equity?	58
24.01.2020	When to use equity?	41
07.05.2021	How long have you been saving equity for your house?	245
12.09.2021	Purchase financing: how much equity (with the low interest rates)?	27
11.04.2022	House construction 2024, affordable with little equity?	75
18.12.2024	Construction financing without equity as an option?	162
29.09.2022	High interest rates with fixed interest, alternative flex loans?	54
07.03.2023	Dream of building a house 2025/26 realistic? Currently hardly any equity, but we are fighting!	52
23.06.2024	Buying a house without equity at a relatively young age	68

Financing commitment at the current time

TmMike_2

Gelbwoschdd

blueday

blueday

SumsumBiene

Maschi33