New construction financing single-family house 150 - 160 sqm

And how is that supposed to work with small children if both parents work full time? Daycare mothers also cost money

Only drawback, part-time of the mother,... clench the cheeks and keep working full-time.
For example, that's what we do, but also because we don't have any sitting options (family) within a 2.5-hour drive.

I don't quite understand that right now either. To me, it also read as if you both work full-time because no one is nearby. Isn't the usual reason more the opposite? (Or am I misunderstanding that right now)

I know a couple where both went back to working nearly full-time quite early and they also take care of the childcare themselves. But that basically came down to shifts (one starts before 5 am, the other somehow around 1:30 pm or so until very late, and lunch is just a quick handoff). But even if that works for those two, I wouldn't want to recommend that as a lifestyle model for everyone. (That wouldn't work at all in many jobs either)

So, right after the birth, of course, the mom was also on parental leave, but once the [Nachwuchs] then went to daycare, we were/are both fully back at work. Hope I was able to shed some light on the matter.

Hello everyone,

our cost framework is now at 95%. We will likely need a loan of €430k. The monthly installment will be around €1,300. Special repayments are not yet factored in.
The house will be a "Kfw 55 EE" --> €26k grant.

There are two options for financing.
Option 1: Kfw as a grant option:

[*]€404k as an annuity loan from the bank. Planned fixed interest period 20 or 25 years. Interest rate not yet determined. --> €1,300 installment
[*]€26k as a pure grant (Kfw 461) without Kfw loan

Option 2: Kfw as a loan option:

[*]€280k as an annuity loan from the bank. Planned fixed interest period 20 or 25 years. Interest rate not yet determined --> €800 installment
[*]€150k Kfw loan with €26k repayment grant (Kfw 261, 262): term 30 years / 0.76% / 10 years fixed interest. --> €500 installment

With option 1 I like the better long-term planning.
The only advantage of option 2 would be possibly lower interest costs. But for that, a residual debt of about €100k remains on the Kfw loan after the 10-year fixed interest period. This €100k then also has to be refinanced at the conditions in 10 years.
My gut feeling is more with option 1.

What is your assessment?

Our credit framework is comparable. We chose option 1 with a fixed interest period of 20 years. The main reason is to reduce interest rate risk.
But today it is hard to assess under which conditions the KFW loan could be extended. If the market interest rate rises in the next 10 years to a level around 2-2.5% (where it was less than 10 years ago), option 1 is already on the cheaper side.
I would now be interested in who tends to agree with this assessment or has an opposing opinion.

Hello everyone,

things are slowly progressing. Of course, it’s getting a bit more expensive than planned, the amount to be financed is 460 k€. We currently have a current offer.

Framework conditions:
Total costs: 567 k€
Equity: 107 k€
Financing: 460 k€
monthly income (together): 5k€ (see further details in the initial post)

Option 1: Bank loan (20Y) + Kfw 124 (10Y)

[*]Bank loan: 360 k€ / 1.51% eff. / 2% repayment / 20Y fixed interest / 5% special repayment
[*]Kfw 124: 100k€ / 1.07% eff. / 3.67% repayment / 10Y fixed interest / no special repayment
[*]results in a blended interest rate of 1.41% / Monthly rate: 1,430 €

Option 2: Bank loan for 20Y (without Kfw)

[*]Bank loan: 460 k€ / 1.61% eff. / 2% repayment / 20Y fixed interest / 5% special repayment
[*]Monthly rate: 1,372 €

If there are questions about the BEG subsidy, we will receive the "KFW 55 EE" subsidy, which is 26 k€ paid out by the Kfw after completion. (without additional Kfw loan)

What is your assessment of this, which option is to be preferred?
How do you evaluate the interest rate offered by the bank?

Morning, I don't understand in your offer 1 why you take the Kfw124 and for KfW55 only the grant? The loan for KfW55 has significantly better interest rates.... Kfw124 should be undercut by every house bank... That was still the case for us in December...