Home financing 100% full financing, is that possible or too risky?

Hello everyone,

we would like to buy a semi-detached house soon and would like your opinion on the financing. We are in our mid-30s and have a 2-year-old child.

Semi-detached house Efficiency House 40 Plus: €620,000
Equity: only the incidental costs will be paid by us, safety buffer for furniture and the rest €60,000.
additional security: mortgage on parents' house €250,000.

Income situation: net I €4,200 (public service), my wife €2,000 (26 hours), child benefit €219 = total €6,419
Income development until 2023 through step increases: approx. €7,000 net household income.

Currently, we keep a household budget and our monthly fixed and variable expenses are about €2,300 excluding cold rent.

Would the financing be possible or too risky? We have not yet received advice from any bank.

Would the financing be possible

Very likely.

too risky?

That is a subjective assessment. I would have no problem with a monthly payment of €1,600-2,000 (which also includes a high repayment/savings component).

The greatest risk I see is, in my opinion, with the parents, as they could lose their house.

If there is no equity, there is only one reason. What was earned was spent. Since a house is more expensive than the previous apartment, savings have to be made elsewhere. If one was not used to this until the mid-30s, it is a big adjustment. There are always reasons to spend money, and although they change with age or demands, the result is always the same. In addition, a few more pieces of information are missing, such as how high the ancillary costs are—sometimes 10% is not enough. New/old building, ready to move in, what else is missing, etc.

if there is no equity, there is only one reason. What was received was spent.

And additional costs as well as buffers fell from the sky?

It is a new house from a developer. Construction only begins at the beginning of 2022.
The additional costs of the house are €49,600.

We do not have that much equity because two years ago we bought two new cars and my wife was on parental leave. We have only recently started saving more again. In addition, my income situation has improved significantly.
Currently, we save at least €3,000 per month.

I think you shouldn’t ask other people. We have calculated everything ourselves and remember that even one income earner can fail sometimes. Go to the bank and get an offer for amount X, then you can already see what money you can get. I think the interest rate and the term are very important here. Everyone will tell you something different here ......