Opinions on the financing offer

Thanks for the answers, even if they are very critical. I would also share your opinion if I looked solely at the facts of the financing. As I wrote, there are other circumstances that you have not taken into account here; instead, words like nonsensical and failed are used as arguments. The fact is also that certain things are added to the mentioned financing. 1. a 4-year-old condominium that will be paid off in 10 years, current value 220,000 euros 2. life insurance and pension insurance with a guaranteed 100,000 euros in the next few years, at the latest upon retirement 3. inheritances, which I have deliberately not mentioned so far because I don't want to count on them. We could also repay more monthly, but we don't want to, because if there is anything left at the end of the year, we want to put it into the special repayment. As I said, thanks for the answers and criticism. But when criticizing, please consider ALL facts before calling something nonsensical and failed.

Your listed "facts" are all well and good. But what use is it if the money for sensible repayment cannot sufficiently flow into your loan repayment monthly?

1. You already have an apartment, but it does not belong to you; it belongs to the bank. If you do not take the new loan from the same bank where you are paying off the apartment, the bank from which you get your €300,000 has no access to it, and thus the security is gone. How much of the current value of the apartment of €220,000 or of the loan has already been repaid or still needs to be repaid?

2. How much money some life insurances and/or pension insurances have "guaranteed" in recent years and how much money some investors still did not receive is unfortunately not a figment of the press. Moreover: if for some reason you have to cancel them early, you can only dream of that sum. I assume they were taken out to be liquid in old age.

3. Including that in a calculation is already negligent.

So, now you buy/build a house, barely repay it, and rely on the above "facts"? I don't want to talk you out of your plan, and I don't force anyone to do or not do anything; I can't anyway. But I can derive some things from my experience, having been through all the highs and lows of house-building enthusiasm.

We have been planning for now a little over 3 years. There are phases of "nice calculations," of "the Christmas bonus will go into special repayment," of "we will inherit eventually," of "somehow we'll manage," of "but others manage it with much less money," and this list can go on endlessly. But it turned out to be good to have gone through these phases and, more importantly, to have come back to reality and recognized that if a house is built, I don't want to just "somehow" manage it but with a good feeling. And that good feeling (at least for me) only exists if:

1. Moderate equity capital is available that can be used for the house to be built. Not what lies dormant in other (also not yet repaid) properties or insurances.

2. The income fits, including permanent contracts.

3. The repayment is set so that the loan is actually paid down and not (almost) standing still.

If the available income is not sufficient for this, it might be better to postpone the dream. There are many possibilities. Pay off your apartment fully first, or put the €1,000 you wanted to put into the house loan into the apartment. Then it will be paid off much earlier. Or save €1,000/month for another 5 years. Then you won't need such a high loan, and the installments will be lower. Or just do it anyway; somehow it will work out, and in the end, you'll show us all the middle finger because you made it. That's possible, but I try to take the path of least resistance and play the less risky version of the game of life. :)

At the beginning, we calculated the housebuilding costs within one monthly income, and now we ask ourselves how we even managed that, or that the house would have had to be paid off over decades. For example, we waited until new jobs/promotions were due to improve the income so that a reasonable financial buffer (for car, renovations, vacation, etc.) could be built up.