Financing comparison - Now it's getting serious

One thing is directly related to the other, as long as you do not change your opinion regarding the other parameters.

It refers to a note that says: After a non-binding preliminary review, a financing amount of xxxxxxx€ is basically possible.

It is meant to be a note that says: After a non-binding preliminary check, a financing amount of xxxxxxx€ is basically possible.

That would be simple, yes. In the location(s) we are looking in, the local banks know that the properties (plots) have a higher value (+ appreciation potential rather high) and they take on a certain "higher" risk with that. We were once told that 750TE would be possible, which I consider very ambitious (just noting approximately 6000TE household net income, equity about 130).

We were once told that 750TE would be possible,

Exactly, set "pain thresholds" (max. total costs/installment(s)) and that's that.

That would be easy, yes. In the location(s) we are looking at, the local banks know that the properties (plots) have a higher value (+ appreciation potential rather high) and accept a certain "higher" risk. We were once told that 750K would be possible, which I consider very ambitious (just note approx. 6000K household net income, equity approx. 130)

These are the general "rules of thumb" - at 110x household net income, you are already at €660,000. Maybe the bank took 120x, and then you are at that amount. Whether that is healthy, you have to decide yourself. And you only notice the reality when the bank actually calculates the loan application. You will have to compensate for the risk with your equity contribution.

But you can calculate all that yourself - what can you spend monthly on housing, do you want/can invest more than 0.33 - 0.4 of household income, and can you pay off the loan fast enough given the fixed low interest rates? From that you can derive a budget - no matter if the bank adds another €50,000 or more on top. Look at your savings rate - how long do you need to save that extra €50,000?

I am bringing up the topic again because I have a question about financing or simply "have a nail in my head": Most properties coming onto the market are about 50+ years old. Accordingly, there is almost always a need for renovation, which amounts to 100-200TE. Example: House costs 550TE (of which about 50TE are ancillary costs) + 150TE renovation. Equity would be 150TE. How does the bank calculate? I cover the ancillary costs from equity, so only 100TE left. I need a loan of 700TE. Does the bank finance the renovation costs of 150TE in any case, and can I expect to get "good" interest rates because it is approximately <90% financing?