110% financing in one or two loans?

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 where you want to do the construction financing no longer wants to support the financing if the consumer loan appears in your calculation...

Thanks for the tip that they are not particularly cheap. We will take a close look at that.

One bank told us that they don't care how the incidental purchase costs are financed, it could be a consumer loan or money from the parents (totally unrealistic), they would fully finance the purchase price anyway, but nothing beyond that. The other bank included both in one calculation, i.e. the purchase price plus incidental purchase costs.

You can post the conditions. Otherwise, just a thought. You can also finance the kitchen with a low loan. Renovation can be done step by step. How does it look otherwise? Net income, employed, etc.?

Yes, that may also be true. Still, be careful. A consumer loan results in an inquiry and entry in the Schufa. Likewise, the monthly burdens increase because of it. If that fits well into your calculation, then that is fine. If it gets tight, then be cautious, as that can be the deciding factor that causes the "scoring" at the bank, which originally told you that you would get the financing, to suddenly back out...doesn't have to, but can.

Also note that with a 10-year consumer loan, not only is the condition worse, but of course also the repayment period. And thus also the installment amount. Repaying 30,000 EUR in 10 years results in a higher installment than stretching repayment over 25 years or even longer.

The reason why one does this (apart from the fact that most banks no longer want to finance more than 100%) is, mathematically, that one tries to reduce the loan-to-value ratio by part consumer loan and thereby achieve a better interest rate for the construction financing. In other words, the additional costs of the consumer loan must be offset by potential savings on the rest of the entire construction financing...might work sometimes...

You can post the terms. Otherwise, just a thought. You can also finance the kitchen at a low rate. Renovations can be done gradually. How else does it look? Net income, employed, etc.?

Your suggestion would be to pay the additional costs immediately instead of the kitchen and renovations? But then there wouldn't be a single cent left as a reserve or emergency fund. That is very uncertain.

Otherwise, everything is settled. Two banks have already given us approval for financing an initially only fictional, but even higher amount.

A consumer loan results in a query and entry in the Schufa. Likewise, the monthly burdens increase as a result.

Also note that with a 10-year consumer loan, not only is the condition worse, but of course the repayment period as well. And thus also the installment amount. Paying back 30,000 EUR in 10 years results in a higher installment than stretching the repayment over 25 years or even longer.

The reason why one does this (aside from the fact that most banks no longer want to finance more than 100%) is mathematically that one tries to reduce the loan-to-value ratio through part consumer loan and thereby achieve a better interest rate for the construction financing. In other words, the additional costs of the consumer loan must be offset by potential savings on the rest of the entire construction financing... it might work sometimes...

Of course, the costs for the, say, 10-year consumer loan would be added in the above variant.
For example:
1,000 € for the construction financing installment plus 300 € installment for the consumer loan.

We thought that the advantages of this variant lie firstly in the fact that after 10 years a big chunk has already been paid off and afterwards only the house itself is still being paid off.
And secondly, that the interest (it was 2.1% in the example calculation at the time) is only paid on the purchase price and not on an additional 26,000 €.
And this 2.1% is a pretty good interest rate for full financing – but we would only get that if we financed the incidental costs differently.

When I enter the 26,000 € on the side of an online comparison calculator, it spits out 1.99 € as the interest rate.

The calculation is a bit off. If you don’t have the 26,000 in the construction financing, then you have to finance it through a consumer loan. You then don’t pay 2.1% on the 26,000 but with the consumer loan rather 5% (I made up that interest rate but it will definitely be much higher than the 2%).

Just have both offered to you and then compare. But not the interest rates. Always compare the total costs. That is the simplest... meaning the sum of all payments.

However, so that you don’t compare apples and oranges, you should consider one more thing. If you take out a consumer loan with 10 years, then you pay off that part faster. Fairly speaking, this should also be taken into account with financing completely through construction financing (if a bank does that). So also a (for a part) faster repayment. This logically reduces the total costs because you have to pay interest for a shorter time.