House financing process

Hello,

I am still quite far from building my own house, I think :=) But I am curious about how the financing works, I have heard that about 30% can be financed through credit, the rest should be equity. But assuming I save an absolutely unrealistic amount of 250 EUR per month = 3,000 EUR / year = 60,000 EUR / 20 years.

How is one supposed to finance 70% of a house with that?

I would appreciate a brief explanation :=)

Best regards

Flo

The times when banks easily financed 130% are probably over. For a fundamental possibility of real estate financing, the incidental costs (notary & court costs (approx. 1.7%) and the property transfer tax (3.5% - 4.5%), as well as any applicable broker fees) should be available as equity. Then there is the possibility of 100% financing, which is offered by various banks. For more solid financing, 20% plus the incidental costs should be available as equity. Then the conditions for the required financing are usually significantly lower than with 100% financing. Because with the higher risk for the bank, the price for the financing also increases. Best regards M. Thiemann