Financing monthly installment €2500 with 40 years term

Simply ridiculous, the thread here. And the owl is sitting in the little house and laughing along?

If you look at it that way, there is also no guarantee that I will still receive a state pension in 2050. Perhaps the Federal Republic of Germany will no longer exist in its current form then and the successor regime will no longer feel bound by old laws.

You are absolutely right about both. However, in my opinion, the first part is more likely than the second. While you don’t have to consider every far-fetched possibility, you should at least be aware of certain risks. Personally, I would not rely on the state pension.
And my objection regarding company pension schemes should not be dismissed if you inform yourself a bit. The direct response to my post has already pointed out some important issues.

We financed over 100% last year and the bank explicitly insisted that we should be almost done with the loan by retirement. As far as I know, there is also an EU requirement that obliges banks not to finance such high loans extending far into retirement age. Presumably for the protection of customers. This also leads to 75-year-olds having difficulty getting a loan for renovations. Such cases apparently do exist. In any case, I am glad if I have at most a small remaining debt at retirement. After all, I still want to be able to live then. Moreover, I think the argument that I will earn more in the future is too simplistic. The question is how much the money will be worth then and how high the living costs are. Maybe there will be less money left over for the loan then.

We financed over 100% last year and the bank explicitly insisted that we should be almost done with the loan by retirement. As far as I know, there is also an EU regulation that requires banks not to finance loans of such amounts far into retirement.

No, that is not correct. Banks have no problem financing into old retirement age (at least there are no supervisory prohibitions, the bank’s own risk strategy may differ). It just has to remain affordable for the borrower, so there is a corresponding verification requirement at the bank. This was adjusted a few years ago.

No, that is not correct. Banks have no problems financing into old retirement age (at least there are no regulatory prohibitions, the bank's own risk strategy may be different). It just has to remain affordable for the borrower, so there is a corresponding verification task at the bank. This was adjusted a few years ago.

The credit check is correct. Since the implementation of the EU Consumer Credit Directive for residential property, they have been significantly stricter. As a result, people already from the age of 40-50 no longer get a loan as easily as before. And the banks probably can no longer count as much as collateral. That is basically reasonable.

It makes a difference for the bank whether it has to estimate the future pension at the beginning of a financing (probabilities of default) compared to the actual situation when the borrower is already 60 years old and has acquired guaranteed pension entitlements. If in old age the guaranteed pension > annuity + living expenses allowance, then banks also release money.