What is the maximum loan amount achievable for us?

Hello everyone,

we would like to get information here about the maximum loan amount that is achievable.

Here are some basic data:

We are married and engineers (31/33) with a current total net income of €5400. No children yet. Desire for a maximum of 2 children, earliest in 2 years.

Monthly savings rate: €2500-2700
Equity: €75000 + a certain amount X for home furnishings
Current cold rent: €650

No other credit obligations exist. Desired loan term max. 25 years.

Thank you for your feedback!

Quite generally:
With 3% interest and 2% repayment, you can get a loan of €100,000 per €500 installment.
With €2,500, that would be €500,000.
If the €650 rent is added on top, then of course even more.

But:

When children come into the picture, income changes. So just calculate what the maximum installment possible is then.
Parental allowance is 65% of net income (max. €1,800) for 12 months for the woman. If the woman should stay home longer, it will be less. Later, childcare costs also come in, which vary greatly. (I simply assume that an engineer would want to work again.)

I would make sure that in times of crisis the installment and all other costs can be covered with one salary. Since you did not provide individual amounts for the salary, it’s hard to guess anything here.
Being married is basically already very good because during times of child-rearing, unemployment or long illness, you pay much less income tax as long as the government does not abolish the splitting tariff.

Also note that a house has higher additional costs than an apartment. Here too, there are rough flat rates with which the bank calculates (2-3€/sqm). I would tend to take €3 given rising prices. Additionally, reserves should be built up for later repairs.

What also comes to mind regarding the income is whether you are privately insured and if so, whether the insurance is already deducted from the net salary?
Otherwise, your net income is somewhat distorted compared to the other net incomes mentioned here in the forum.

In principle, you have a very good income and, depending on the loan amount, not a bad equity. That should continue to grow month by month.

Hello Musketeer,

thank you for your answer.
So basically exactly right - if children, the woman wants to work again!

So our net salaries individually are:
€2750 and €2650

We are both not privately insured - so the stated net should be about right. Of course, we have not considered any premiums and special payments; you could then use those for special repayments on the loan.

Hello everyone,

there is news from us.

We currently have an offer of about €410,000 (including basement + a few extras) for a newly built semi-detached house. However, without outdoor facilities.

Total costs: about €440,000 including property transfer tax/notary
For the outdoor facilities, I am estimating about €20,000

In total €460,000

That means a financing requirement of €320,000

Equity has now increased to €140,000.

Monthly total income: €5,550 net

How do you evaluate these numbers? Financing should be completed in max. 20 years. Sondertilgungen are also planned.

Hello,

is the land already included in your figures? If yes, what is the price here?

Regarding your question: I think you can easily set 2000€ as a monthly rate. That corresponds to about 400,000€ loan at current interest rates.
Moreover, the family planning is crucial. and how you plan to accommodate the children.

We were also two DINKS (Double income no Kids...) The world was rosy, we didn’t know what to do with our money, so we built
I’m exaggerating a bit right now...
Then the child came, my wife suddenly earned only 65% of what she did before... doesn’t matter, it still fit perfectly...
A year passed, she started working again. Half-time means half pay... still no problem.
But the child needs care, and that’s where the problems start if you were too generous before:
Our day care provider charges us 400-500 € per month. Which she honestly earned.
Additionally, the ticket for my wife costs 100 € per month so she can get to work. Then occasionally eating out with colleagues, or feeding the coffee fund, and suddenly maybe 10-20 % of her income is gone. That means I have to pay the loan and everything else like car, groceries, and insurance from my salary.
With the second child, it gets even less, because only 65% of 50% of the initial salary is paid out as parental allowance.

Also, straight away: we received a request from the tax office to pay 2800€ in taxes for the parental allowance year... so a full 2 months of parental allowance.

If your salary is around 2700 €, I advise you not to take a loan higher than 300,000€. Calculate only with your salary,
and take your wife’s salary as a bonus, as pocket money, or money for vacation/furniture/childcare or eventually for special repayments.

But from what it looks like, you are doing quite well.

Our figures:
We bought a plot of land for about 120,000.
Then built a prefabricated house (150sqm living space) with KFW55, wood stove, bay window, central ventilation system and gas boiler on a slab for about 270,000€. Incidental construction costs about 40,000€.

Hello Der Da,

the land is included in the price but the purchase price is not listed separately, only the total amount.

For a financing need of €320,000, the mortgage calculator (b*u*i*4.de, I don't know if I am allowed to mention it here) calculates a monthly rate (interest and repayment) of about €1,800 for a full repayment loan with a term of 19 years. I have left out special repayments. We do not want to pay more monthly. However, I do not know how accurate the figures are and whether they are comparable to a bank. We just wanted to get an approximate reference point. We want to arrange a consultation appointment with our bank soon. Then we will know more.