Which credit burden suits which income - experiences?

If I tell you now that with us the financing rate based on the income at the time is just under 30% (and that was the maximum for us) and today is even only 25%, that doesn't really help you. It works for us like that, others approach it much more riskily.

That is correct. My supervisor recently just shrugged during a conversation about construction sums and said I also have to consider what I would earn in a few years. In our company, there are predetermined career paths and salary developments to a certain extent. He meant to say that a rate that seems high now will be just a drop in a few years. Still, I resist such a way of thinking.

On the one hand, I am willing to limit myself to some extent in order to become debt-free quickly. On the other hand, I could not imagine including money in the planning that might be available sometime in the future.

I see it similarly to you. For me, it is the same, I am paid according to the tariff and know how the salary development looks. But since we have also been keeping a household budget for quite some time, I also know how our expenses have changed, and clearly upwards. The only thing that really stays the same is the installment for the house.

I calculated for myself or rather for us now, since the basis is now two salaries. I still have a monthly installment for my condominium for one more year, recently we have the installment for the undeveloped plot, and in addition we still have to pay child support. Our ratio is 36% (without) or 44% (with support). The reference here is therefore long-term, monthly burden.

Quick question. Does 40% mean that the monthly credit burden may be a maximum of 40% of the total income?

Hello,

the 40% limit is not a must, but a recommendation that has proven itself over the years.

In principle, you have definitely understood it correctly.

Regards,

Dirk

For us, it works well like this.

The current burden is even slightly higher than the planned burden. So a good simulation.

What makes a lot of sense in my considerations is to set the monthly installment a bit lower, but agree on a higher special repayment (on my condominium I also have 10% instead of 5% annually, that was 0.1% more expensive).
That gives more flexibility/security in case the money is not that readily available. But if everything goes as planned, it is still possible to repay just as quickly or even faster than with a higher installment combined with 5% special repayment.

What do you think of such an idea?