General questions before bank appointment

"to hurt" in the form of simply missing 45k compared to the initial plan. Without added value... that hurts everyone. Possibly phrased awkwardly. The financing does definitely not stand or fall because of this amount. No, we do not have an above-average income. Alone, we could, would, and should not finance such a high amount. Conservatively calculated, we are at about 4500 euros net. Here, 1500 euros rent are added. Without being torn apart and stoned here... we planned with a monthly burden of 2700 euros regarding the loan.

Oh sh.... I don't want to stone you here, but if the property you are currently renting is not free of encumbrances and the value is not sufficient as collateral, then it might be that you won't get the amount.

Even a rate of almost 50% of the income will not be accepted by the bank. Definitely not.

Before you start thinking about details now, go to the bank and clarify the amount. Everything else makes no sense with that income.

Now you're scaring me.... no, the rent is planned for the new building. There will be 2 houses. We have no debt. Equity = land (approx. 500k) But you're right. I have to go to the bank. We won't do any crazy things.

The equity ratio is more than healthy. In my assessment, the bank would not cause any problems here (if you end up in financial difficulties after completion, the bank is more than secured). But the income could cause problems, as it is actually too low for this high amount.

The bank calculates with flat rates. That means 4 people need 1400-1500€ for living + house payment of 2700€ + incidental house costs (own use) 400€ + provisions for the house (investment property) + provisions for own house. Furthermore, the bank accounts for rental losses, so possibly not the entire 1500€ (cold rent) is considered.

As said, the loan amount is unusual, despite a very good equity ratio with that income.

In addition, I have read in connection with investment property loans that at least 20% of the loan amount must be available in liquid assets.

Thank you very much for the detailed and helpful answers. I think the conversations with the banks will be very insightful again. Either the bank does this with us at a decent interest rate or we will leave it. We are very frugal and very conservatively cautious in our planning and considerations. We will not do anything crazy regarding the monthly burden. Even if this may sound very crazy to others here....

Do I understand correctly that you are building 3 residential units, one of which will be owner-occupied and the other 2 rented out? How large will the apartments be?