Financing in relation to income

We have several financing offers. Currently, the Sparkasse and ING are in the running.

I currently earn €3,000 net. Additionally, there is holiday and Christmas bonus and a premium. Calculated over the year, this results in a net income of about €3,500.

Nevertheless, I assume €3,000, as that is really fixed.

My wife receives €2,000 net or €2,300 if you apply the calculation mentioned above. But here too, we prefer to calculate with €2,000.

Additionally, we receive child benefits for 2 children and €300 maintenance for child 1 (not mine).

We currently rent with a cold rent of €1,300.
Currently, we manage to save between €750 and €1,500 every month (in a normal month).

Thus (and by setting aside various special payments), we were able to save nearly €25,000 in the last 15 months.

The construction project would cost approximately €450,000.

- €330,000 house including construction costs
- €95,000 land
- €20,000 reserve

Here, however, we would now only want to contribute €15,000 as real equity and €20,000 in own services.

In total, we want to finance €420,000-€430,000.

ING and Sparkasse each offer us 15 years at about 1.5% effective. With a repayment rate of 3.0%, we each pay around €1,350.

Of course, one could also include the KFW 124. Currently, there is €100,000 available at 1.1% effective. This lowers the blended interest rate. The disadvantage is, of course, the shorter fixed interest period of 10 years.

As a limit, we had set a maximum rate of €1,450.

What do you think?

What do you think?

Easy. There is nothing more to say about it.

5000€ net, 400€ child benefit, 300€ maintenance, and 800€ bonuses make a calculated household income of 6500€ per month. Even without the money from the children, you are still doing well. Plus a cheap house. It hardly gets better than that. So yes: Easy and fits.

Completely in the green with the income. I already wrote this earlier in another thread. Are the 1.5% effective now the market standard? About 2 months ago, I took out a loan with 0.75% nominal interest and a fixed interest period of 20 years. I thought that due to Corona, interest rates would continue to fall at least in the short and medium term. I cannot understand that.

Interest rates have increased since March. The default risk has simply risen.