How much equity is needed for home purchase financing?

  • Erstellt am 2021-06-17 08:11:40

ullw889

2021-06-26 12:22:21
  • #1
70,000 euros (13.5% of the loan amount) plus just under 40,000 € which was entirely spent on furnishings including the kitchen. Plus about 8,000 of own work which I have now taken into account here.
 

Zaba12

2021-06-26 17:06:49
  • #2
Wonderful, this is the best misinformation I have read here in a long time. I have to ask, because for me it has already been 2.5 years since signing the construction financing and the OP here is throwing around 15% equity capital. 15% equity capital in the OP's case when buying a house does not mean that it is an 85% financing, but depending on the federal state it will rather be a 95% financing, right?
 

Tassimat

2021-06-26 18:02:00
  • #3
Of course, incidental purchase costs for an existing house with a broker are hefty. The money is simply gone and you don’t see it again when selling. With renovation, kitchen, buffer, etc., it can easily approach 100% despite €100,000 equity. My neighbors spent almost exactly 100k on incidental costs for the house purchase.
 

Zaba12

2021-06-26 18:46:05
  • #4
That’s what I wanted to get at, it’s neither 66% loan-to-value nor 85%. In the best case, it’s a 94% financing. In the worst case, even 100% financing (good point about the broker, I hadn’t thought of that. It does exist). Therefore, equity is not always the same equity. Still, you have to calculate with what you have and manage with it. As my architect once said during planning: “Have you discovered another source of money overnight? No? Then it stays with the current plan.” There simply need to be more people like that :cool:
 

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