Financing monthly installment €2500 with 40 years term

If in old age the guaranteed pension > annuity + cost of living allowance, then banks will also lend money.

Pension calculations and/or information on occupational pensions are also sufficient to finance people aged 45 to 85. The remaining debt at retirement is also important. Many banks, for example, calculate a defined annuity on the remaining debt.

If there are still €150k left and the bank (internally) calculates with a 6% annuity, that would be €750 per month in my example. So all good, since an apartment is guaranteed to be more expensive in 20-30 years.

ah yeah? I thought you were an IT specialist who just works at a bank. Enlighten us, what is your profession now? That helps to classify your answers.

No, I never said that. I had also mentioned my role at the bank before. Will my statements, like those about Habeck, now be judged based on my job title? I think the points I listed are enough.

We do not want to increase the repayment rate now, as we want to stick to our desired rate. After all, we still want to be able to live.

Besides the side discussion, it was initially mentioned that €2500 to €7300 is not in any relation and that one can live very well with less “remaining.” One could also call it unrealistic. But it fits with naming €50,000 as assets. That is simply savings or liquid funds. Just as a side note.

What was not mentioned, however: most of the time, it feels very bad when you receive the financing statement at the end of the year and see that you have practically paid off almost nothing but have generated many, many interest charges for the bank. At the latest after the first 5 years, you regret this artificially reduced repayment rate.

Incidental construction costs, such as construction electricity, construction water, earthworks and foundation slab, are included in the builder’s offer. They also work with a fixed price guarantee until completion.

Well, if it is a bundled deal or a developer house where you buy a piece of house with a plot of land, that may be the case. If you acquire a plot independently, he cannot and will not be able to name the incidental construction costs for you since he makes an offer for the house construction. Everything concerning the land, which he does not know, is your responsibility (except maybe 30cm of soil removal). So be careful and always check the construction service description!

Please keep a household budget or at least a comprehensive listing of all the expenses you have.

I would also see it that way: one should learn the relationship to one’s own money and it is advisable.

We financed over 100% last time and the bank expressly insisted that we 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 such high loans too far into retirement. Probably to protect customers. This also leads to 75-year-olds having difficulties getting a loan for renovations. Such cases do actually exist. (...)

A lot is being confused again.

You financed 100% and your retirement is still 32 years away. What happens in those 32 years is impossible for the bank to predict, hence this regulation. But you also say that you have to be "almost done" with the loan. If 50,000 EUR remain, that won’t be a drama.

If you want to refinance at 60, then your future pension is almost guaranteed. Then the bank can recalculate and will certainly give you a loan for 150,000 EUR. Because your house will be worth much more, which counts for the bank. The bank wants to get its 150,000 EUR plus interest back. If this amount is more than covered by the house, then the banker will jump for joy. That is much preferred over financing a new build where they finance 70 to 80% of the total sum.

And with the 75-year-old who renovates his little house. The problem there is that the unrenovated house only has a very low market value. Nobody simply buys it at a reasonable price anymore. The security is therefore relatively low, but the amount for renovation is high... and, unfortunately, this must be said: The risk that the 75-year-old dies during the renovation is real. The life expectancy of men in Germany is 78.5 years.

The bank wants its 150,000 EUR plus interest back. If this amount is more than covered by the house, then the banker jumps for joy.

Collateral helps, no question, but the guideline also stipulates that the income or pension must be high enough to service the loan. Legal requirement. If you can no longer get a loan in old age, it is due to the meager pension and not the value of the house.

Collateral helps, no question, but the guideline also requires that the income or pension must be high enough to service the loan. Legal requirement. If you can no longer get a loan in old age, it is due to the meager pension and not the house value.

And where should the problem be in coming up with 500, 600, 700 EUR monthly for the installment at 67?
If you could finance a 2,000 EUR installment before?

Who, do you think, still builds or finances property nowadays? Those are not people threatened by the basic pension?