Fixed-term employment contract financing?

I cannot imagine that it really matters whether the contract is temporary. We are currently dealing with the third property financing and no one has ever wanted to see our employment contracts. We were also asked how long we have been employed there (which is also stated on the pay slips), but the question of whether the contract is temporary or not never came up. Why should that only be important during the probation period? I think the banks already know that an employment contract is no guarantee, even a permanent one, that you won't be without a job in a year. A permanent contract can be terminated at any time. As far as I know, that is not possible with a temporary contract, at least not by ordinary termination.

I can't imagine that it really matters whether the contract is temporary. We are currently on our third property financing and no one has ever wanted to see our employment contracts. They also asked us how long we have been employed there (which is also on the pay slips), but the question of whether it was temporary or not never came up. Why should that only be important during the probationary period? I think banks already know that an employment contract is no guarantee, even a permanent one, that you won't be out of a job in a year. A permanent contract can be terminated at any time. As far as I know, this is not possible with a temporary contract, at least not an ordinary termination.

It depends on the bank and the volume. Some want to see it, others don't. If the financing is tight and the volume is high, a temporary contract can be decisive. It's also a good argument to go to the employer and ask for a permanent contract.

: Please under no circumstances take the following words personally. They are neither meant as disparagement nor as demotivation or insult!!! They are simply more like my general thoughts on the currently common practices in the market. Hopefully, your responsible bank advisor will be able to resolve your personal case...

@ all future builders/ property buyers: Melimina's example clearly shows which group of people (with fixed-term employment contracts!) now want to build/ buy. And how some banks operate. Business at any cost, no matter what happens to the customers afterwards. This has already happened in the USA and Spain, how it ended is well known. So, for those who have time: wait, the end of the bubble is obviously approaching. After it bursts, companies will then have more time for their customers again and compete for orders. Good for builders and buyers. Bad for everyone who might lose their job and be unable to pay. The eternal cycle...

Sorry, but the situation in America is not comparable to our market in the slightest. It is also a difference whether I finance a house with a credit card or with a fixed-term contract, especially under still regulated and supervised credit guidelines, see [Wohnimmobilienkreditrichtlinie 2016].

Neither the economic experts, nor the banks themselves, and above all the Federal Financial Supervisory Authority, which by law could intervene, have or entertain any concerns whatsoever that there are signs of a real estate bubble.

Man, sometimes you can really overdo it. ESPECIALLY in (general internal) administration, fixed-term contracts are (far too) common. Whether it's maternity leave cover, a newly launched project where it is still unclear if the funding can continue afterward. We don't know exactly what the reason for the fixed term is here. Nor do we know why an applicant applies for the fixed-term position.

At least at my employer, but also in comparable administrations in the area, there is now a shortage of personnel when it comes to new hires (which, for the reasons mentioned above, sometimes still have to be fixed-term), suitable applicants are hardly available.

But once you're in and prove yourself, you are usually employed in another position after the fixed term expires - if you want that. For some, fixed-term contracts are also simply the entry into the desired employer, as internal applicants hope for advantages.
So don't badmouth fixed-term contracts and don't act as if "everyone wants to afford a house."

All the best to the OP!

: Please do not take the following words personally. They are neither meant as disparagement nor as demotivation or insult!!! They are simply more like my general thoughts on the currently common practices in the market. Hopefully, your responsible bank advisor will be able to solve your personal case...

@ all future builders/ real estate buyers: Melimina’s example clearly shows which group of people (with fixed-term contracts!) now wants to build/ buy. And how some banks think. Business at any price, no matter what happens to the customers afterwards. This has already happened in the USA and Spain, and the outcome is known. So, if you have time: wait, the end of the bubble is obviously getting closer. After it bursts, companies will have more time for their customers again and will compete for orders. Good for builders and buyers. Bad for those who might lose their jobs and can no longer make payments. The eternal cycle...

Here, I think you can rather see what kind of people feel the need to comment on everything on the internet and just talk know-it-all nonsense. Fixed-term contracts in the public sector are nothing unusual at all and do not mean that you end up on the street afterwards. Just ask an employee at the university how many decades he has been "hanging on" from contract to contract. It is not uncommon there that only 5 out of 35 employees are permanent staff. And even 15 years ago, fixed-term contracts in the public sector were by no means a reason to deny real estate financing. Those whose daily bread depends on it know the situation and probably wouldn't come up with the idea of claiming that this entails an increased risk of default for the bank.