Review of construction financing / loan

My salary will increase significantly again in the next few years, that is already certain. Her salary will too, once she starts. We get along great, believe me. Otherwise, I wouldn’t buy a house if I hadn’t calculated everything optimally. Furthermore, this is also my second property and it worked out great back then.

I am now looking to get offers. We still have plenty of time, that will not be the problem.

But why? With a net income of €5500, a payment of €1650 is quite manageable, right? With additional costs (electricity, etc.) €2000 are gone and €3500 remain for living... I find that okay. Especially because in the long term the salary increases, but the payment (in the best case) stays the same.

Because after 15 years (without special repayments or repayment increases) there would still be over €300k left to pay. The thought of so much remaining debt really unsettles me

The payment itself is quite manageable, no question, but in the overall picture I would only do this with more equity.

My personal opinion on this is that a “healthy” financing should be built so that at any time one person could bear it alone. With a €479k loan and €3500 on one side and €2000 income on the other, that wouldn’t work for me.

You don’t even know in this case what is included in the €479k, what else will be added (painting and flooring work, outdoor facilities, kitchen, etc.)—that also needs to be paid and often consumes the planned special repayments.

But as I said, that’s just my personal view on it.

The problem is this: The bank evaluates your situation now.
That your girlfriend might earn money one day or that you earn more money will also be welcomed by the bank.
But it is not relevant for the current offer.

The bank only considers your income.
That is also why your interest rate is so high.
The bank is pricing in the currently visible additional risk - as of today.
So it's unfortunate, because you are securing an interest rate based on the current situation, but in two years your personal situation (more net income) will look completely different.

I personally also find the remaining debt way too high and the repayment too low.
The term is 34 years. Phew.
Overall, a risky financing.

The high interest rate indicates a 100% financing, doesn’t it?

Thank you for your assessment. I think that’s probably what it comes down to, but we will still try somewhere else. It can’t hurt, and we still have time. Let’s see what comes of it. But I don’t really feel the same way about the remaining debt and the 34 years, because it is firmly planned and calculated that we will definitely make special repayments in a good amount. Therefore, I don’t worry much about that.

I'll put it like this: no risk, no fun. It wouldn't be my thing either. It can go well, but it doesn't have to.