Would financing be possible?

Hello everyone,
my girlfriend (35) and I (37) want to buy a house.
This would cost 160,000 €, we have together 3,500€ net (permanent employment), a child is not planned for now, but this could change within a year. Equity is only about 10,000€.

Would financing be possible at all under these conditions and if so, how?

I am also the owner of the parental home and would like to know if banks etc. consider this for a new own financing (as collateral, or different interest rate, etc.).

I would be very grateful for some tips and help regarding feasibility etc. what can be done.

Thank you

Hello loritas

What additional costs come on top of the 160K€?
Real estate transfer tax 3.5 or 5%
Notary 1.5%
Broker ???
Renovation/renovation costs

At least the first 3 points should be covered with equity capital.
With the 10,000€ that will be rather tight.

If the parental home is unencumbered, it can of course serve as collateral.
Then a loan could also run on the parental home. This lowers the loan-to-value ratio and thus the interest rate.
Are there rental income/expenses there or is there a right of residence registered?

At 35 and 37 years old you are no longer the youngest for having children.
You should definitely think about whether or not to have children.
Because if yes, then it will certainly happen in the next few years.
What income would then be lost?

Unfortunately, you also did not write anything about the monthly expenses.

Why have you only been able to accumulate 10,000€ in equity so far?

HI, since I already own a property, I have not been able to save much equity yet. The house still has an outstanding debt of approx. 18,000€. One floor of the house is rented out (320€ cold rent per month in income + 500€ from us for rent). My mother has a lifelong right of residence in this house. The new house would have 685€ leasehold per year (approx. 60€ per month). Additionally, there are building insurance, oil, electricity, etc. Our expenses are about 900€ per month (insurance, car, food, etc.) additionally. That would be approx. the current situation. Thanks for the help

That is quite a tricky situation and I would advise you to go directly to a financial advisor.

Regarding the parental home.
The bank with the remaining debt is listed as the first priority in the land registry. Another bank will not necessarily be satisfied with the second rank.
Possibly you can arrange new financing with the bank already registered, without having to make another entry in the land registry. If it is an old loan with poor conditions, it may also make sense to pay it off.
The right of residence is also registered and is therefore taken into account as a depreciation factor.
Also think about what you want to do with the apartment that becomes available.
Will it be rented out or will you perhaps incur costs due to vacancy?

Regarding the expenses
I hardly believe that you can manage with €900.
Just a normal car costs around €400 per month including insurance, gasoline, taxes, repairs and depreciation plus another €250-300 for food, all other insurances, membership fees in clubs, subscriptions, GEZ. What about holidays?

Regarding the loan
For a €160,000 loan you should calculate with a rate of about €700-800.
This includes a repayment rate of about 2% and an interest rate between 3.2% and 4%.

So as I said, it’s best to gather everything together (previous loan agreements, land registry entries, overview of all income + expenses) and then go to the bank/financial advisor. This won’t work here on the internet.