Financing offer single-family house including building savings, experiences

To make it very clear:
- The rate is too high / your income is too low
- Your expenses are very high for two people
- You have no equity
- You will not be able to save anything on the side, you have not managed to save anything so far. And with a house, expenses tend to increase rather than decrease
- Financing over 30 years or more is unwise under these conditions. After at most 15-20 years, repairs / renovations will begin. How do you intend to pay for them?
- A building savings contract benefits your bank advisor, not you

Honestly, I don't find the equity strangely low. I finished university at 27. Advanced technical college entrance qualification after 12 years, 3.5 years of apprenticeship, one year of work, 4 years of study. I only had a decent "equity" at 33 because my parents supported me during my studies or I was able to work for skilled worker wages during semester breaks and was constantly abroad for work. Many others were less lucky/opportunistic and started their jobs with sometimes horrendous debt.

Nevertheless. There is simply too little income for the loan amount requested and for the installment. Especially because in the early 30s the desire to have children is as a rule by no means off the table yet. Anyone who believes that is usually deceiving themselves.

Thank you, thank you for all the responses.

The topic of children has already been medically taken care of.

We have little equity because my wife had not earned anything until recently.

We are only contributing 25k€ because I want to be able to bridge time in case of short-time work or, in the worst case, temporary unemployment. We are also paying for the kitchen and some bills (15k€ - 20k€) from our current savings. However, considerably more equity would not be available, maybe another 20k€ at most. In my opinion, a kitchen has nothing to do with a home loan, which is why I did not list it.
In our expenses, I have already included some savings amounts for PC, car, miscellaneous. I do think that despite the installment, we can still save a good amount. For example, we never take vacations.
Some money will eventually come from the parents, but rather in 10 years or later.

We will get another offer without a building savings contract. From what I hear, interest rates have unfortunately risen again a bit. I believe around ~3.5% nominal interest rate.

But thanks again for the replies, even though I have already calculated a lot and for a long time, other opinions always help.

Basically the classic. You want a serious, ideally well-founded piece of advice... but you don’t put everything on the table.

From your initial post, one might assume that you have a fortune of 25k€ and not a cent more. Apparently not true. How much coal is there then?

The kitchen has nothing to do with the mortgage, that’s true. But if at the end of the house construction you absolutely can’t afford a kitchen anymore because everything is gone and also no furniture. What have you gained with the finished house then? Therefore, such essential furnishings as the kitchen, minimum furniture, etc. must of course be included in the total calculation.

I don’t know anyone who hasn’t exceeded their standard calculation for the bank by at least 10%. In your case, you should therefore have a good 40,000 EUR in cash as a reserve somewhere. Plus the capital for furniture, kitchen, removal company, etc.

Currently, we have about 55k€-60k€. I estimate roughly 2k€ are added monthly at the moment. The notary appointment for the purchase is already in December. Furniture + other items such as tools or filler materials, paint, have been factored in but rather low because except for the kitchen, we already have fairly new good furniture and we are building small, so not much new will be added for now.

This is roughly my cost breakdown: House 310,000€ + 10,000€ selection Photovoltaics 25,000€ Additional costs 35,000€ Vinyl floors 4,000€ Doors 3,000€ Kitchen 15,000€ Paving 8,000€ Bathroom fittings 3,000€ Furniture + other items 2,000€

Some items overlap. For example, we have standard bathroom fittings already included in the house price but we might take a credit and get our own. We take the shower tray from the general contractor and it is included in the selection. Tiles will be done by the general contractor in the kitchen, WC, bathroom, technical room. Paving doesn’t have to be done immediately etc. etc. But in my opinion, this was not so relevant to break down for the financing.

Forgot property
74,000€ + notary and land transfer approx. 80,000€.