Financing Home Purchase Assessment

Search term ARD Mediathek heat pump is a nice report on an old building heat pump with 400€ per month electricity costs for the heat pump

There are of course also stupid heating engineers. And they apparently are not even that rare.
(The article is called "Heat pump as a climate savior")

Unfortunately, no other capital is available... I have arranged an appointment with a financial service provider, I am curious to see how he assesses the issue.

Thanks for the info regarding the energy index.
How can you tell if the electrical system needs to be renewed? Can I recognize it somehow or what problems arise if it does not meet a "new standard"?

For someone in their mid-30s, there should be more equity. As it looks, it was completely saved up only in the last 2 years. In contrast to many others who want to replace all wiring in 15-year-old houses, I believe the electrical system is still okay and definitely has existing protection. If the new kitchen requires a separate RCD, it doesn't cost a fortune. The same applies to the oil heating system. A new oil heating system may still be installed until 2026; replacement of an existing one is currently unlimited. Ask the chimney sweep whether the oil heating system must be modernized upon change of ownership.

Regarding financing: If I have to borrow 660,000 EUR and the property is only worth 590,000 EUR, then this is approximately a 110% financing. What would the average interest rate be roughly in this case? Do many banks do this or is it more like "a handful" (credit score is good)?

Best regards

A brief note:
For the first financing (purchase/construction), banks set the conditions based on the purchase price or construction costs, regardless of the value they determine.
That means 660,000€ financing for a 650,000€ purchase price + let’s say 10,000€ value-increasing modernization = 660,000€/660,000€ = 100% financing = 100% conditions.
Even if the bank determines a value of 500,000€ for the house
(currently there are banks in metropolitan areas that finance up to 250,000€ above the determined value!!!)

The value of the property is always important for the bank in the follow-up financing because conditions are set afterwards.