You're looking at the nominal values, which is hugely misleading when discussing something that spans multiple decades. That 900 euro years from now isn't going to be worth much due to inflation. It's worth less than half after 36 years.

Instead, focus on the interest rate. You're the borrower now. Interest is the "rent" on the borrowed money. If you were the lender, you would want the borrower to pay you back a fair amount, too.

>Loan of €250,000 €27,000 initial deposit Pay back ~€900 per month for 38 years

Interest rate is =RATE(38*12,-900,250000)*12 = 2.86%. I don't know if this is considered low in Europe, but this is a very low rate in the US. There are plenty of things that yield more than 2.86%, including many risk-free instruments such as government bonds. This rate is even on par or below inflation. Assuming your income rises with inflation, you're actually spending less and less fraction of your income on home loan each year.