Take more credit or sell?

So, we have decided for various reasons to rent out the property, thanks again for the input.

Here are the key figures for in my opinion an interesting loan
€250,000 disbursement amount, 15 years fixed interest period, nominal interest rate 1.52% (effective according to price indication regulation 1.53%), installment €1,087, special repayments up to 10% possible, remaining 2030 without special repayments: €94,268
Special repayments through grants quite certain, so that in the worst case there will still be €25,000 - €50,000 left.

Net household income: approx. €5,000 (including rental income)

Can we sleep well with this financing?

If not with your framework data, then when?

Maybe the question was a bit unfortunate. Due to our high equity + apartment, my sleep is naturally good.

I mean, whether we can be satisfied with regard to the framework conditions for the loan. Or would more actually be possible with our creditworthiness?

We have a similar interest rate (slightly better) with a somewhat lower loan-to-value ratio (exactly how much you can't say, I recently learned).

So, a quick update:

We have decided to rent out the apartment.

We now have an offer; would like to hear the opinion of experts:

Loan 270k
220k via Commerzbank at an effective interest rate of 1.50% (10 years) + KfW 50k at 0.75% = blended interest rate of 1.36%
Why only 10 years? Because we will sell the mentioned apartment then and repay the remaining debt.