Home calculation - realistic?

If you calculate with a loan of 480k€, you are roughly at a loan-to-value ratio just under 90%. In the best case, there is an interest rate of 1.76%. With a 20-year fixed interest period and 2% repayment, you end up with a rate of 1500€. After 20 years, however, you still have 250k€ debt.

So how high should your desired rate be again? With this amount and no further background, a repayment of 2% is reckless. If it stays at 2%, the monthly additional costs of 400€ are added. That makes 1900€ monthly for housing.

Therefore, you have correctly recognized that equity is important. You just have to decide for yourself what you want.
No one is saying you shouldn’t build, but thinking a little further than I want a rate of 1500€ is necessary.

- The wife working part-time is not unlikely, because with a child the attitude changes
- 1st and then maybe 2nd child afterwards
- Daycare fees for possibly 2 children in succession
- Loan runs for 37 years at 1500€, the fixed interest period in the upper case is only 20 years (Where interest rates will be in 20 years, no idea, but 250k€ is still a lot)
- etc...

And you have already recognized correctly, with 480k debt and 4.8k net monthly income, you both will have to return to full-time work as soon as possible. And now think about how many parent couples there are who really go back to full-time work after a year. And then ask them if they find it comfortable or would rather reduce their hours a bit. Do not fool yourselves, 2x full-time and children is really tough. Probably doable, but stressful for both the children and the adults. That should not be underestimated.

So how high is your desired rate again? With the amount and no further background, a repayment of 2% is negligent. If it should remain at 2%, then the monthly additional costs of €400 will be added. That makes €1900 monthly for housing.

Thank you for your explanations. We have set the rate at 1500 so that after all costs (rate, additional costs, insurance, cars, groceries, phones) we still have about €1900 left for hobbies, vacation, investments in the house, etc. It is also planned to make an annual special repayment, which one could save from the €1900. Sure, one could possibly set the monthly rate at €1700-1800, but then you lose flexibility.... unfortunately, I don't really know exactly what is more sensible: higher monthly rate or lower rate + special repayment.

In my opinion, an affordable rate + [Sondertilgungsoption] is always a good choice. However, I would rather use the low interest rates to set the repayment rate correspondingly high. Unless you can actually make corresponding special payments through the [Sondertilgung].

Regarding the loan amount, I think a €1500 installment is a bit too low. It can all work, but you really have to be very aware of what you’re taking on. I wouldn’t count on special repayments. From experience, I can tell you that at most 10% of those who announce it actually do it. Because what would then remain as planned suddenly goes towards unforeseen expenses, children’s equipment, new car purchase, etc. The special repayment option also costs. And after 10 years, you can anyway make special repayments using the applicable termination right if you have a longer term. More important to me would be a calculation that makes sense. A permanently affordable installment that also includes child planning, etc. It’s a different situation if family planning is already completed. That has already been mentioned. Even if both of you go back to full work quickly... you then also have more expenses (daycare etc.).

Just for comparison. We have exactly the same loan amount of 480k and also a net income of 4.9k with 2 small children. However, we only work 80% and 50%. Furthermore, we have 2x 13th salaries and bonuses and overtime. Our rate amounts to 1770 EUR. Childcare here costs nothing or just the meal money. I think it’s okay like this for us. Due to the 13th salaries and bonuses, about 10k extra comes in per year, and if it really gets tight, we could both increase our working hours. Without these special payments during the year and the possibility to increase hours, I wouldn’t have taken on such a loan amount.