Financing decision experiences

I couldn’t follow all your explanations but understood the following: You submitted loan requests for over 475k and now only need 465k? I consider that uncritical. As previous speakers said, just sketch it out on the documents, the bank will change it anyway. Don’t be fooled by these “hard deadlines,” you are already in the processing phase and have been bringing them a lot of money over the years. My bank said the same of course, in the end it sat with them for 2 weeks... A reputable lender recognizes whether you can handle it or not and doesn’t need the parents’ collateral. With good credit on your part, it also has no further effect on your interest rate or anything like that. Everything else should make you think.

Just no building savings contract construction. Otherwise, quickly clarify the matter and keep the parents out. The parents' gift should ideally be made as soon as possible or be firmly guaranteed by them.

Interest rates are rising steeply, so it's better to lock in the current offer. This is not a bluff by Ing. Just Google Interhyp mortgage interest rate development...

Are you really risking the family’s house and home for that? That’s really not much. 500 euros per year if you buy a house of about 600,000. It’s like refueling nowadays: queuing at the gas station for half an hour with a 40,000-euro car just because the fuel there is a little cheaper.
If I were your family, I definitely wouldn’t go along with it.

I meant, -5000€ for every -0.1% – so with a 0.4% reduction it would already be about 20,000€ less in interest during the first fixed interest period...

But insurances don’t prevent the forced auction of your parents’ house! My main bank also tried to persuade me to mortgage my mother’s condominium. I’d rather go to another bank. They also had significantly better conditions and didn’t try to push me into such a construct.

Not the forced auction itself, but the step before that (i.e., that a payment default could occur at all)... in the event of the death of one of us, the surviving borrower would receive a pension from the life insurance. Of course, that’s very unfortunate... but still, with some family support, a forced auction would definitely be excluded. Or the house we are buying now would simply be sold by the survivor – and they move in with the parents for the time being. It’s not like we have absolutely no buffer left, so that one would become immediately insolvent.

Worst case scenario, of course, would be if we both died simultaneously – which can’t be excluded – then I don’t quite know what would happen with the insurances, etc...

I am rather the pessimistic type, but if I evaluate the whole thing “neutrally” based on the key data (both just under 30, no known preexisting conditions, stable jobs, both with parents, would get insurances anyway..), the scenario of a possible forced auction seems extremely unlikely to me, I must admit. But it is equally important to me to get other opinions – thank you very much for the many posts you have already written!

All this leads me to another question of understanding: in the scenario with mortgaging the parents’ house, would the parents’ house be “only” encumbered for the next 10 years at first, right? So with a refinancing you could then reconsider whether to do it again or not (probably then no longer necessary, since the outstanding loan amount has already decreased, and your own house has also increased in value)?

I couldn’t follow all your explanations but I understood the following: You applied for loans over 475k and now only need “just” 465k? I don’t see that as critical. As previous speakers already said, just outline it on the documents, the bank will change it anyway. Don’t be fooled by these “hard deadlines,” you are already in the processing stage and will bring them a lot of money over the years. My bank said the same thing, in the end it just sat with them for 2 weeks… A serious lender recognizes whether you can manage it or not and doesn’t need the parents’ guarantees. With good creditworthiness on your part, it also has no further effect on your interest rate or anything like that. Everything else should make you think.

Thanks for your tip. The loan amount is actually not correct (I left out the ancillary purchase costs above), but yes, it’s only about the 10k difference.

In the meantime, I have received a financing proposal from my financial advisor with a mortgage on the parents’ house (he wanted to calculate this option for me anyway), it would be 2 loans with two different interest rates, one at 2.24% with ING and one at 2.07% with another bank (both nominal interest rates). So already quite good, considering that ING’s rates will increase by 0.3% from Tuesday (so without the parents’ house and with more equity, it would be 2.6% there) – but if I can secure the current ING conditions (2.28%) until Monday, that would definitely be preferable for me.

By the way, I know about the interest rate increase at ING not only from ING itself but also from the financial advisor.

Just no building savings contract construct. Otherwise, settle the matter quickly and leave out the parents. The parents’ gift should be made as soon as possible or be contractually assured by them.

Interest rates are rising steeply, so better lock in the current offer. That’s not a bluff by ING. Google “Interhyp mortgage interest rate development”...

Thanks, the building savings contract indeed seems very opaque to me or I find it hard to calculate exactly in Excel… I might have the advantage that, thanks to employer conditions, the closing fee would be waived, but otherwise I have no idea...

By the way, does anyone have experience with this –0.1% interest rate discount after internal review? Does it really exist or is it just to lure customers?

So it's actually quite good, considering that ING's rates will increase by 0.3% starting Tuesday (so without the family home and with more equity it would be at 2.6%) - but if I can still secure ING's current conditions (2.28%) until Monday, I would definitely prefer that.

By the way, I don't only know about the interest rate increase at ING from ING itself, but from the financial advisor.

I can confirm that as well. We also made a great effort from our family vacation to scrape together the documents by email in order to get the request through at ING by Thursday. We were also told about a 0.3% increase starting Tuesday.

Thank you for your tip. The loan amount is not quite correct (I left out the ancillary purchase costs above), but yes, it’s only about the 10k difference.

In the meantime, I have received a financing proposal from my financial advisor with a lien on the parental home (he wanted to recalculate this option for me anyway), it would be 2 loans with two different interest rates, once 2.24% at ING and once 2.07% at another bank (both nominal interest rates). So pretty good, considering that ING’s rates will increase by 0.3% from Tuesday (so without the parental home and with more equity it would be at 2.6%) – but if I can secure ING’s current conditions (2.28%) until Monday, I would definitely prefer that.

By the way, I know about the interest rate increase at ING not only from ING, but from the financial advisor himself.

Thanks, the building savings contract indeed seems very non-transparent to me or I find it difficult to calculate precisely in Excel… I might have the advantage there that due to employer conditions the closing fee would be waived, but otherwise I have no clue…

By the way, does anyone have experience with this – 0.1% interest discount after internal review? Does it really exist or is it just to lure customers?

ING adjusts and they don’t care why the documents were not submitted on time. Don’t let people unsettle you because the local savings bank might turn a blind eye to this once in a while. In any case, I would accept the offer from the Ing-Diba and not involve a second property for such a small difference. It is practically unsellable as long as your fixed interest rate period runs…