Financing request single-family house price €365,000

Once again summarized:

You take out two loans (regardless of which banks). Both loan agreements are signed by you. The parents only sign the mortgage registration on their house as well as the purpose declaration (that the mortgage is for your loan).

You only get a KFW loan as a simple component (regardless of what you use it for):


You do not get a subsidized loan for renovation/refurbishment measures. For that, you would have to invest a few more € and renovate to the corresponding efficiency house.

In terms of conditions, the KfW loan is crappy and only has an interest rate fixation of up to 10 years.

Is it a higher…?

It can probably happen, yes. (?)
I don’t know if the OP wrote anything about how the bank values the house. Presumably not yet at all. And the renovation should also somehow have a value-increasing effect, although certainly not the entire 100k will be assumed.

Another thought: You currently have 5k net, your wife does not work full-time. So there was probably more income before. Still, at 35 you only have 30k equity. There are surely reasons for that, [Bafög], long education, child, cars, etc. But the financing will cost you in 1-2 years what you have in total equity. Consider (even just for yourselves) whether you can manage that. And don’t count on a 100k inheritance.

Am I the only one who has noticed this very low repayment? I find the financing in general does not look healthy at all.

Yes, the 374k at 1.1% repayment still leaves a lot to be desired with 144k remaining debt after 30 years. I suspect the OP is speculating on increasing the repayment rate over time. It would look better if you started with 1.5% from the beginning. But then the payment would already be 1661€. The extra 100 euros probably won't make much difference per month, but after 30 years you would only have 60k remaining debt.

The problem here is probably that the second loan for the renovation is still added on top and also needs to be repaid. The two payments together do not fit 5k net for me at all.

Am I the only one who noticed this very low repayment?

True, I forgot to comment on that. The loan for the house to be acquired has a repayment rate of about 1.1% and a calculated term of almost 40 years. I always thought most banks insist on 2%, but perhaps that’s shifting again now that interest rates are rising?

The installments together, if I see correctly, are a bit over €2000 for both calculated scenarios. This is somewhat divisive. I know many here in the forum would definitely shout "that’s not possible!". But in terms of income vs. installment we are at similar values, even somewhat worse. (But we repay more, which is why I see it as a kind of "forced savings" for myself, even though the monthly burden is certainly not negligible). There is usually a faction here that says "allocating such a large share to housing is unhealthy and you will never be able to go on vacation or live again! Don’t you know how expensive family life is!!!" versus the other faction that says "nonsense, there are still €3k left for incidental expenses and living costs, that’s more than enough!". Where you stand on this, you just have to see. In any case, it makes sense to review the expenses of the last few years again and critically scrutinize whether it fits. (E.g. for us, although the installment is high, it is still well below cold rent plus what we currently save monthly for the house anyway. So in a way, we’ve been practicing "installment + savings" for more than 2 years, and still have some additional buffer). Otherwise, it’s also important not to dismiss all special expenses from the past years as "that was just a one-time thing." Of course, you don’t buy a car, a new bed, or take a once-in-a-lifetime world trip every year, but the truth is there’s always something (especially as a new homeowner there will be some new purchases). And checking what those kinds of expenses have been over the past years is definitely useful.

For me, I think what’s important here would be: a) clarify the cost block (the renovation costs were more of a rough guess, pardon me) b) clarify and analyze for yourself how much you are willing to pay monthly for the loan c) grill the finance guy if you have questions about what he’s coming up with. I didn’t find the structure so complicated, but the email arrangement was a bit odd. But otherwise, just ask him. That’s what he’s there for.