110% financing in one or two loans?

Correct.

What was questionable for us was simply whether it is better (as recommended by one of the banks) to finance 100% through the bank and 10% through another, regular loan, thus via two credits, or 110% in a single loan. Which option ultimately means less interest payments.

From my layman's perspective, 110% is only feasible as

- 100% with construction loan interest + 10% with consumer loan interest.

110% with construction loan interest does not exist, as the last 10% has no collateral in terms of real estate.

so I would say goodbye to having any reserves from the funnel for the time being. Quite frankly, you are financing your reserves yourself, which makes no sense at all. You can build up the reserves again once everything else has been purchased.

Apart from the kitchen, it doesn't cost the earth. Can't you borrow the money from somewhere? Parents, siblings, grandma, etc.?

And if – it doesn’t have to happen, but anything can happen – the heating breaks down next year? Is it really better to take out another loan plus interest right away?

Borrowing money is actually out of the question. I don't want to borrow money from anyone at over 30 years old, especially not that much, that completely repulses me. Besides, we are only children, the grandparents are dead, and the parents are retirees or no longer around either.

From my layman’s perspective, 110% can only be represented as follows,

- 100% with mortgage interest + 10% with consumer loan interest.

110% with mortgage interest does not exist, as the last 10% has no security in the form of a property.

We already have a relatively good offer from Interhyp for a 110% financing. Interest rate 2.6%. Term 25 years. Installment €1,100.

You're not taking out a loan for that now. If something really breaks, you can still borrow the money you need.

To make it clear again: You take out money that then just sits in your account, doesn't generate any returns, but on the other hand you pay about ~4% interest for it. Simply for nothing. Sorry, but that's complete nonsense.

We already have a relatively good offer from Interhyp for a 110% financing. Interest rate 2.6%. Term 25 years. Rate €1,100.

If that really is only one loan, and not, as I suspect, actually two loans with just a blended interest rate formed, then go for it and be happy.

We already have a relatively good offer from Interhyp for a 110% financing. Interest rate 2.6%. Term 25 years. Monthly payment €1,100.

Hmm... I wouldn’t hesitate and would accept immediately. These are currently the conditions for 100% financing. Either they misunderstood you, you misunderstood Interhyp, or who knows. Let me know how it turned out. I’m curious.

Thank you ! Even a layman like me understands it that clearly. Then we have to have it recalculated once more.

And you are right, there are two, the 2.6% is a mixed interest rate. The cheaper one is 1.5%, KfW.