Purposeful financing — monthly burden

5% repayment is really a dream with a rate of less than 25% of the monthly income. I wouldn’t have any pain with that at all.

I also see it as absolutely no problem. Just tell your wife tonight "In a forum on the internet, everyone says it's great and don't be like that." She will respond sensibly and let go of her fears.

Above all, you are doing it exactly right! You have to get used to the high rate!

Above all, you are doing it exactly right! You have to get used to the high rate!

Everyone ticks differently.
I prefer to set my rate lower and thus remain financially flexible. That gives me the security of being able to service the loan at any time in case of disability, unemployment, long illness, etc., without having to worry about finances when I am already feeling bad. Nowadays, many loan agreements include the option to change the repayment rate, but that also costs percentage points on the interest. Since we question every expense for its meaningfulness, I can still make my special repayments in full every year and thus have over 6% annual repayment.
For me and my wife, saving has never been a compulsion but an automatism. Those who live like that do not need to get used to high rates.
Those who cannot stand seeing money left in their account at the end of the month and feel the urge to shop compulsively should discipline themselves with a high rate.

At €5000, I see €1200 as easily doable. But if you suddenly have to forgo €1300 during parental leave and maybe later don’t work full time anymore, why not be more flexible and set the repayment a little lower and make the rest through special repayments? You don’t have to go down to 2% right away.

Just a thought.
The interest rate of 1.2% is below inflation. Economically speaking, it actually makes no sense to repay a lot now.
Let interest rates rise above 4% again (which I currently do not believe) and have interest on current accounts over 2%. Then it would be nonsense to repay a lot instead of investing safely. Personally, after a major stock market crash (>30%), I would not put my money into special repayments but invest it in the stock market. But you can only do that if your loan is designed flexibly.

However, the decision can only be made between the two of them and they have to find a middle ground for themselves.

That's completely fine. How much cold rent are you currently paying if I may ask? Let's take 700 euros as an example. That's gone. Always.

About 200 euros (at the beginning, will get smaller over time) from your installment go towards the interest, for the rest you always get more of your house. So that is a savings rate! Forced, but it's saved.

So that's 1000 euros (at the beginning, it will increase over time) that you save every month. Or 500 more than you have paid in rent so far. With these 500 you have roughly saved your equity capital until now, right? Apparently you have managed quite well with that. Obviously not a very big difference, right? Except for the compulsion to save. That's new for you, your equity savings you could adjust every month or spend the equity for other things if you had wanted.

But as mentioned, there are mortgages where you can adjust the repayment rate, so you would have flexibility. And in the opposite case almost always the possibility for special repayments.

OK, reserves are added as well as higher additional costs. That should also be considered.

Even though I consider the financing to be solid, I would personally choose a lower repayment rate and make more special repayments instead. With a 3% repayment rate, you pay 875 EUR, leaving more than enough to live on in any case. A 5% special repayment is usually included everywhere, but many banks still charge for changing the repayment rate. If you now make an additional 5000 EUR per year in special repayments, you will be finished in about 17 years without risking financial hardship.