Hello, we (wife, 2 children and I) are currently planning to build a house. Key data: Single-family house costs approx. €420,000, KfW 40+ Plot €110,000 + ancillary purchase costs without realtor Equity capital €92,000 Income €3,200 net + €438 child benefit My wife currently does not earn a salary, so not included My employment contract is limited until 2022, as I changed my workplace in 2019, I work in the public service, not a civil servant. We could buy the above plot or have a leasehold plot from the employer. I have received offers from banks for the leasehold case. For the leasehold plot, I would still have to pay the street + canal fee totaling €32,000. Offer from the cheapest bank €365,000 30 years fixed interest, 1.8% nominal interest, 1.83% effective, €1,150 monthly rate, no KfW, 18 months availability Are the interest rates so high because of the limitation? Is there any way to reduce them?
We have similar key data regarding the house and plot. For us: Single-family house: €440,000 KfW 55 Plot: €100,000 + ancillary purchase costs without realtor Equity capital: €90,000 However, we earn just under €7,000 per month, and with the first child, it is still just under €6,000. I would have concerns about undertaking the project with significantly less. We have a fixed interest over 35 years, 1.4%. Then everything is paid off; I did not want a follow-up financing. We also had an offer for 15 years fixed at 1.1%.