Loan only up to €140,000 with €1,200 monthly?!

Hello!

We have the desire for a house and were first at a model home park. There was also a (free) financial advisor there by chance. Since we actually had no experience in this area, we simply asked and requested a financing example.

We would have €1,200 available per month, equity about €10,000.

He calculated with 7% interest (he said that was a good average! Is that so?) over 10 years and said we could get a maximum loan of €140,000. An apartment would probably be better for us...

I didn’t get a clear answer to my question why only a 10-year financing period. Did I miss something? Sorry, maybe I’m asking stupidly, but I read in various sources about terms of 25-35 years?! So the loan amount should also be higher than €140,000?

Regards S+F

P.S. Our dream house costs about €175,000 + land about €75,000.

Hello S+F

what exactly have you already settled with these 1200€ or what exactly do you mean by "available"? Is that net or is it what you could save? The banks always calculate with about 900€ deductible, that has to be exceeded after all possible loans and incidental costs are deducted. If you plan to build your dream house in reality soon, you need to hurry a bit regarding the interest rates. But 7% is definitely not an AVERAGE! More like 5%! With these 10 years, the financial advisor surely meant that the loan agreement is initially fixed for 10 years. That doesn’t mean the entire financing is that short.

You just wanted a short example

Just go back to your house bank and inquire there.

Best regards

hello,

seems like the independent financial advisor gets his commission through the interest ^^.

I would almost call that fraud, hope you haven't signed anything yet.
Today we fixed our loan at the Sparkasse, 150,000 at 4.36%. If I were a bit more skilled in such matters, 4.2% would have been possible.

Chase the so-called financial advisor off your property immediately.

Equity is key at the moment; if you "only" have 10,000 euros in equity, it would be good if you could compensate for this through secure jobs (civil servant status) or through subsidized loans.

I guess he offered you 10 years because you can refinance your loan anyway after 10 years, no matter how long the term is agreed upon.

just as an example:

House cost 175,000 + 75,000 land = 250,000
+ 10% incidental costs (land registry entry / land preparation / interior fittings etc)

275,000 euros total costs

Equity 10,000

then you have the possibility to finance 265,000 euros through the bank, whereby you should definitely negotiate interest below 4.3% at that sum, or you build a KfW 60 house and are a young family with 1 child (Wfa Bank)

KfW sponsors 50,000 per housing unit at 4.2%
Wfa up to 102,000 euros at 0.5%

Rest through the bank.

Just as a food for thought and to google.

going to bed now, can write more in detail tomorrow

Hello!

We have €1,200 monthly available "warm" for the house. This advisor (well, probably not a good one!) said you calculate €2 per sqm for additional costs. So for a house with 120 sqm, that would be €240 additional costs...

Strangely, the financial advisor said with a 10-year financing, we could only get a loan of up to €140,000, so it wouldn't work out with a house! When I asked about financing for longer than 10 years, he didn’t respond.

We will go to our house bank and other banks in the area to get offers. €250,000 would be nice

@ Cmajere, no, of course we haven’t signed anything yet... just informed ourselves first.

We are interested in a Bien-Zenker house, we saw it in the model home park and it was very nice. According to the brochure, it is probably a Kfw40 house (so far, I have only read about KfW 60 or 75, but 40???).

We (still) don’t have children.

More detailed information is of course always welcome. As I said, we are still very inexperienced in this field.

Best regards and thanks in advance!
S+F

Hello,

with such model houses you really have to be careful. There are usually so many extras included that are not counted in the standard price.
----------------------------------------------
A Kfw 40 house is airtight and uses renewable energies, often a combination of a solar system, ventilation system with heat recovery, and heat pump. KfW-40 houses have a compact shape to keep the surfaces (= heat losses) small.

Component Low-energy house Energy Saving Ordinance KfW 40 house Basement insulation 8 cm 16 cm Exterior wall insulation 10 cm 32 cm Flat roof insulation 20 cm 32 cm Window frame Wood PVC-5 Ventilation Windows Heat recovery 80% Heating energy demand 90.4 28-48
KfW 40 funding
Anyone who meets the standard of max. 40 kWh annual primary energy demand per square meter of usable floor area receives financial aid. The KfW grants loans up to €50,000 per residential unit, which can be combined with other subsidies. Another requirement: The heat loss of the building must be at least 45% lower than the Energy Saving Ordinance standard. KfW information sheet


Here are some data for you.

We ourselves are building a KfW 60 house. The standard KfW 60 and 40 will soon be replaced by KFW 55 and 75.

Please keep a low profile!!! Fraud is an ugly word and can easily lead to misunderstandings. A bank is a product seller - an independent financial broker - among many asset advisors who are sometimes just multiple intermediaries - there is also fee-based advice for everything. So since everyone has to earn money at the end of the month, it is totally okay if the advice was good, the product fits, and the price is reasonable. right?!!? You decide what you want. But to believe that anyone earns 0 € from selling or working is unrealistic. And I see the KFW subsidies much more simply. Calculate for yourself. For example, a drilling or an air-water heat pump costs about 10,000 € MORE PRICE. With a saving of about 20 € (an example) on heating/energy costs (classic heating models about 50 € per month), you need about 30 years - then your investment reaches the zero point. Everyone as they want and can. And every new house must eventually comply with the Energy Saving Ordinance 2009 - which basically means heating costs of about 50 € gas with solar as the classic + standard alternative.