Financing - where is the mistake?

That sounds terrible, my scribbling. Actually, I am pretty well planned : )

Then go to your local bank and inquire there. What might be possible for you, with the option to increase the repayment once your husband is finished... But what would also be feasible without him...

Without even a hint of equity, I currently see things very dark. For a financing of this magnitude, there should be around 15-20 K EUR somewhere, if only to cover the incidental costs. The rest could be better, but could also be worse.

Without equity and with only 1 % repayment and then claiming to be the type who doesn’t like to take risks sounds a bit strange.

I would advise against 0 % equity, 30 % equity would be optimal, but maybe not always achievable, somewhere in between you should land.

I would only accept 1 % repayment if the interest rates are secured until the full repayment of the loan and this is a point in time before your own retirement.

If the interest rates are only secured for 10 years, I would repay more, ideally 3 %. If in 10 years the interest rates are back where they were 10 years ago, namely at 5 %, then the rate should still be sufficient to repay at least something.

If you wait with building/buying a house until your husband has finished his studies, you will also get significantly better conditions because the loan will then be secured by two incomes.

If you search on Google under 'Budenheim bautagebuch' you will find two sections "Wie viel können wir uns leisten" and "Finanzierung" where you can find more information.

Or even better: go to an independent financial advisor (e.g. Interhyp) and simultaneously to your house bank and get advice. However, they can only tell you what is possible from the bank’s perspective. What is possible from your perspective, i.e. how much money you are willing to spend monthly on a loan, you have to decide yourself.

Good luck and best regards

jx7

We initially also wanted to buy and went to the bank a few times to ask if this or that would be financeable. This at least gives you an impression of when the bank employee starts to frown.

We have two small children, even when my husband has finished his studies, I will have to work less again, so the thing with the two salaries, which would then be better, is a bit of an issue.

Without even a hint of equity, I just see dark times at the moment. For financing of this magnitude, there should be around 15-20 kEUR available somewhere, if only to cover incidental costs. The rest could be better, but also worse.

I have 25 kEUR lying around here, but I didn’t want to spend it, since probably this year there will still be 10 kEUR of Bafög repayments as well as maybe someday a new car (16 years old, new purchase around 2 kEUR). The rest then as a buffer.