Financing plan single-family house 150sqm

Hello,

after much back and forth in January with a property that ultimately didn’t work out (see other thread), we now have a really great property in sight.

Key data:

[*]House built in 2012
[*]150 sqm living space, 1.5 floors
[*]Plot 1170 sqm
[*]Very rural location
[*]House price: +480,000€
[*]Property transfer tax: +31,200€
[*]Notary: +9,600€
[*]Broker: +17,200€
[*]Total: +538,000€
[*]Equity: -20,000€

Personal key data:

[*]She: 28, employed TVÖD, 1,200€ net until July, 1,600€ net from August (contractually fixed due to return to more hours after parental leave)
[*]He: 29, employed engineer, 3,600€ net (private health insurance already deducted)
[*]Junior: 1.5 years old, brings home 219€
[*]Total household net income without special payments: from August 5,419€

Household budget is kept and expenses excluding cold rent and private health insurance average 2,500€ per month. Included are groceries, clothing, drugstore, subscriptions like Netflix and co., fuel, insurance, retirement provisions, daycare and pet food.

Financing plan:
Has been prepared by our financing advisor as follows:

[*]384,000€ from DSL Bank, 1.37% effective interest, 20-year fixed interest period, 2% initial repayment, 1,078€ monthly, 38 years theoretical term, up to 5% special repayments, 3x repayment rate changes to over 2%
[*]100,000€ from IB.SH ImmoEigentum, 1.38% effective interest, 15-year fixed interest period, 2% initial repayment, 282€ monthly, 38 years theoretical term
[*]34,000€ from IB.SH ImmoFlex, 1.61% effective interest, 10-year fixed interest period, 2% initial repayment, 102€ monthly, special repayment of 2,600€ per year planned here, fully repaid after 10 years

How do you assess the whole thing? Interest rates are relatively high since our equity is unfortunately not sufficient due to the broker and so it will be a 104% financing.

Monthly burden would be 1,462€.
The special repayments can be comfortably made from the annual special payments. If not, this component can also be extended to a maximum of 38 years. The goal is deliberately full repayment.

Please share your opinions. My wife and I were positively surprised by the relatively low monthly burden despite the limited equity. We had expected 1,600-1,700€.

since our equity unfortunately is not sufficient in full because of the broker

Your equity is not insufficient because of the broker, but because it is generally low. However, this is not such a big problem nowadays since even with a low equity ratio and a longer term, still reasonably low interest rates are possible. 2% repayment is not much, so you should make use of

repayment rate change to over 2%

as soon as possible. What exactly is meant by

special repayment planned of €2,600 per year

? Is the special repayment part of the contract, thus mandatory?

How do you assess the whole thing? Interest rates are relatively high because our equity capital is unfortunately not sufficient due to the broker, and so it will be a 104% financing.

104%? It is 108% of the purchase price and thus somewhere around 120-130% of the lending value. You better be glad that you are getting any financing at all ;-) The price is completely fine for that.

What exactly is meant by ? Is the special repayment part of the contract, i.e. mandatory?

No, but that's how we calculated it with the advisor and therefore removed another €34,000 component that had better interest rates but no special repayment.

104%? It is 108% of the purchase price and thus somewhere around 120-130% of the lending value. Better be glad that you get any financing at all ;-) The price is completely fine for that.

You are right, I noticed the typo too late.

Pretty! Solid like-new house! No comparison to the one in Eutin. Buy!