Your opinion on our financing concept

I would like to hear your opinion on our concept:

The property: We are planning an owner-occupied single-family house with about 150 sqm of living space, Kfw70 standard. The construction costs including the land and all additional costs are estimated at 320,000 EUR.
The loan: The loan amount is to be 340,000 EUR (50,000 EUR KFW energy-efficient, 50,000 EUR KfW home ownership program, 230,000 EUR bank loan). 10,000 EUR will be added as equity. The interest rates for Kfw loans are 2.2% and 2.9%, the bank loan was offered to us at 3.6%. The 20,000 EUR are intended as a buffer and, if unused, will be used as special repayment within the following two years (special repayment max. 5% of the loan amount p.a.).

The monthly balance: The monthly installment should be about 1400 EUR for all three loans. Additionally, we want to make special repayments of 2000-3000 EUR per year. Total income currently 5000 EUR, all ongoing costs for 2 persons (operating costs, living expenses, leisure, car, etc.) amount to about 2300 EUR per month. After the loan installment, there would still be a surplus of ~1200 EUR.

So there is 1200 EUR as leeway. Future salary developments are not taken into account. In the long term, 1-2 children are planned, but these are not included in this calculation.

What do you think about it?

Fixed interest rate of the bank loan? How is the €5,000 income distributed among you?

20 years fixed interest rate on the bank loan, for the two KfW loans it is 10 years each. 3000 EUR (man) 2000 EUR (woman)

If the bank loan is consistently repaid with the €3,000 per year as special repayments, it will be practically paid off after 20 years. But is that really doable? What if children come? The regular repayments cannot be significantly reduced either if things get tight. But even if no special repayments are made at all (not even the €20,000), the remaining debt should certainly be manageable with the current rate.

The KfW loans will hardly be repaid, the remaining debts should still amount to about €80,000 together after ten years?! But it could be manageable with the current rates.

Where have the €1,200 surplus gone so far?

So the question now is how your family development (children) affects your financial situation (income) and thus the financing (repayments), I do not see the remaining debts as so dramatic, of course it depends on how many years you want to be debt-free and how old you are.

Hello

I believe the interest rate refers to a fixed interest period of 10 years. For me, at this level, that's too short! One question, with this very good income only 10,000 equity?

What was done wrong here?

Where did the €1,200 surplus go so far?

Hello

I believe the interest rate is fixed for 10 years. For me, at this level, that's too short! One question, with this very good income only €10,000 equity?

What was done wrong here?

The interest rate fixation on the bank loan is definitely 20 years. That is also very important to us.

Regarding the question about the low equity: we have only had this "good" income for about 2 years. And we bought whatever we felt like at the time :-) Actually, we wanted to buy/build in 2-3 years, but a very good opportunity arose for us (a joint building project with family on two neighboring plots).

By the way, the repayment rate is just under 2%...