The equity required to purchase an existing home depends on various factors, including the purchase price, financing terms, and the individual requirements of the lender. However, as a rule, equity of around 20% of the purchase price is recommended in order to obtain favorable financing.

You can calculate the impact of the amount of equity on your financing using the Dr. Klein mortgage calculator on my website under Financing.

The term of your home loan depends on various factors such as the amount of the monthly installment, the loan amount, and any special repayments. However, you can choose the fixed interest period yourself. Since the beginning of 2022, interest rates had risen steadily, but we have been seeing interest rate cuts again for several months now. Dr. Klein, my partner for real estate financing, expects a sideways movement in the first half of 2025. Therefore, I recommend a shorter fixed interest rate at this point in time.

You can find the Dr. Klein construction loan calculator on my website under Financing. Here you can calculate daily construction loan rates, monthly installments, and total costs.

The annuity should not exceed 35% of your net household income. This will give you sufficient leeway for other daily expenses and living costs.

You can calculate the amount of your personal annuity using the Dr. Klein mortgage calculator on my website under Financing.

The costs of financing a home are made up of various factors that you should take into account when planning your financing. These include:

• The purchase price of the property
• Incidental acquisition costs, such as real estate transfer tax, notary fees, and land registry costs
• Financing costs, such as interest and fees for the loan
• Ancillary construction costs, such as building permits, setting up the construction site, and construction management
• Commitment interest incurred on loan amounts not drawn down