Maximum construction financing based on income

Now honestly, who the hell cares about the muscle mortgage in terms of the actual construction costs? It's only there to reduce the loan-to-value ratio (if the interest rate is at a relevant threshold) and to get better interest rates. Materials and machines still have to be paid. One shouldn't fool oneself with the rosy calculations when building a house. Such things usually backfire.

I hope the detailed calculation from looks like this: 515,000€ total price - 35,000€ discount for own work + 10,000€ material costs. and not like this: 515,000€ total price - 25,000€ "muscle mortgage".

I hope the detailed calculation by looks like this: €515,000 total price - €35,000 discount due to personal contribution + €10,000 material costs. and not like this: €515,000 total price - €25,000 "muscle mortgage".

What kind of discount?

My recommendation: just go to the bank and get advice. Ultimately, you will be able to decide for yourself whether you will be able to manage the whole thing with your salary. Don't let yourself be unsettled.

Again about the child benefit: There is child benefit (which is paid monthly into your account by the family benefits office), and there is the child allowance when calculating taxes at the end of the year. The two items cancel each other out - only the one that is advantageous for you applies. But this does not matter for the financing, since you basically always receive the child benefit at least. It was taken into account in our financing. Similar situation. Currently 1 full income, 1x parental allowance, then 1 income and 1 part-time income. Plus 200€ child benefit (1 child). Even if the bank is only interested in the "now," you have to look ahead for yourselves. I have an Excel sheet where all regular costs and income are recorded. We know that we have to tighten our belts a little for 1-2 years more than we are used to. Our financing is about 33% of net income with the 1.5 salaries. When the little one goes to [KiGa], it will be financially more relaxed again. From the start, we also planned reserves for maintenance into the calculation.

There are two separate points: 1) does the bank’s household calculation show that the installment and additional costs can be covered by the income (besides what is needed for other household expenses)? 2) Can you, with your lifestyle, your spending habits, cover the installment and additional costs?

Point 1) decides whether you get the financing. And for point 2) the original poster gave exactly zero information. Except about the car story.

By the way, with 13 incomes and child benefits you basically get to €4200/month. With that, a €440k loan... surely there is a bank that will finance that. Child benefits are sustainable, so they can be counted – the bank also takes the children into account in the household calculation.

Private closing remark: comments like "Because of tax class 5 it’s not worth it if the wife goes to work" regularly make me sick... I guess I am too emancipated for such a point of view...