110% financing in one or two loans?

It is about the purchase of a like-new single-family house with purchase land and double garage. A few minor things still need to be done before moving in, but due to the year of construction, it is very limited. The owner recently became widowed and therefore wants or rather has to sell.

The purchase price is €219,000 The incidental purchase costs €26,000 (unfortunately with a broker)

We do have equity, but that would just cover the incidental purchase costs. Therefore, we would prefer to use this for renovation, the necessary new kitchen, and as reserves. Do you also consider this to be more sensible?

So we need a loan (and we will get one, that is already clarified) of over €245,000

My second question to you now: What is more sensible, to finance the entire amount of €245,000 through a bank as part of the construction financing (full repayment), or is it better to finance the purchase price as construction financing over 30 years and the incidental purchase costs as an additional loan, possibly with another bank, over 10 years?

Not my area of expertise... but just as a follow-up question... what kind of financing are the incidental purchase costs supposed to be for? Also a construction loan? Or a consumer loan? Or how did you imagine it?

Not my area of expertise... but just as a follow-up question... what kind of financing are the incidental purchase costs supposed to be for? Also a construction financing? Or a consumer loan? Or how did you imagine it?

A consumer loan.

Go to an intermediary; they will put together a package for you. Or calculate for you whether it’s worth it and which banks are even an option.

Whether a full repayment loan is worthwhile or not also depends on your household budget.

Go to a broker; they will put together a package for you. Or they will also calculate whether it’s worth it and which banks are even an option.

Whether a full repayment loan is worth it or not also depends on your household budget

Okay, thanks. We have already made an appointment with a broker. I am curious which option they will recommend.

What do you mean by full repayment? Isn’t that always the safer option?

Better calculate that exactly. A consumer loan over 10 years.... they are usually not particularly cheap. You have to calculate carefully.

Also be careful not to fall into a trap. That does not mean that the bank with which you want to do the construction financing no longer wants to support the financing if the consumer loan appears in your calculation...