Needs Planning for Home Financing

The 20% are no longer set in stone nowadays, but that would be considered healthy. It also depends on your income and the household service.

I would assume that the bank currently wants to see at least 20% equity, with an interest rate of almost 4%.

There may be exceptions if two senior physicians sit there with a combined gross income of 25,000 EUR/month... or a federal minister...

Santander already wanted 23% from us in 2020...

I would assume that the bank currently wants to see at least 20% equity at almost 4% interest rate.

There may be exceptions if 2 senior physicians with a combined gross income of 25,000 EUR/month sit there... or a federal minister...

Santander already wanted 23% from us in 2020...

We signed a financing in 2020 and didn't even have 10% together. Also, my husband did not have a permanent residence permit at that time and was therefore considered a risk. We were financed anyway, and we are no senior physicians either. We just had an interest rate about 0.2-0.3% higher than the rates you usually read here.

Do you already have a plot of land? And is it paid for?

I think less than 300k will definitely be tight, no matter where you want to build, even if we are only talking about the house without land.

The 20% are no longer set in stone today, but it would be considered healthy. It also depends on your income and household expenses.

Yes, the plot of land was transferred to us by my grandpa in Brandenburg. I would also think it will be difficult under 300k. We have solid jobs and together earn 5200€ per month, but we still have a loan running which we ideally want to restructure. We haven’t reached 20% yet. At most 50k, but I have a bad feeling about putting everything into the house. You also want to have reserves.

Do you have a household budget book? If not, now would be the time to create an Excel sheet with all regular and irregular expenses to determine the maximum possible rate. How high is the other loan and at what interest rate? Basically, 350k for the house, incidental costs, outdoor facilities, kitchen is quite tight. You won’t be able to fit the garage into that budget. Let’s optimistically assume 300k in external capital, then at 4% you have €1000 per month for interest and with repayment a rate of about €1600. That would still be manageable with that income. There is a little bit of room to go up, but not very much.

250 ceiling height (standard),

Shell construction or finished dimension?

We signed a financing agreement in 2020 and didn't even have 10% together. Also, my husband did not have a permanent residence permit at that time and was therefore additionally considered a risk. Nevertheless, we were financed, and we are not even chief physicians. We were just about 0.2-0.3% higher in interest rate than the values usually read here.

2020 was before the war and interest rates were at 1% or below. A 100% financing was normal and 110% possible. Furthermore, inflation was lower and supply chains were better. That means less risk that needs to be secured.

2020 was before the war and interest rates were at 1% or below. Back then, 100% financing was normal and 110% was possible. Besides, inflation was lower and the parts supply was better, i.e., less risk that needed to be secured

I know, but I still wanted to contradict the statement that banks already required 23% equity in 2020. Maybe his bank did, but definitely not all banks.

Even today, 95% financing is certainly still possible if the household income fits. The likelihood that it fits is just getting smaller and smaller, because with today's rates you need a substantial income to handle such payments and still have enough left for living expenses. And that's where the catch lies:
I do not believe there is a direct connection to the "current times" or the war, or the possibility of financing 95% or 100%, or how high the equity share must be. I see more of an indirect connection. For 100% financing at today's interest rate levels, you simply need a secure income at an exorbitant level so that the household payments fit, and in addition, with such high financing shares, the loan-to-value of the property must also be correspondingly high – a lot has certainly changed there too.
Nevertheless, blanket statements like "today you need 20% equity" are not correct. It is and remains dependent on the situation.