Annual review of financial situation

Hello everyone,

I have been observing this forum for several weeks now, have been able to gain a lot of experience here, and in the end decided on the construction and financing.

As described above, I have taken out financing for a new building – all nice and good.

Today I was sitting with a friend chatting, and she said that the bank checks the customer's financial circumstances every year, especially the KFW...

My questions are:

Is this really true? Do you have to expose yourself every year?

To what extent is this checked? How transparent do you have to be?

Personally, I could not find this point in my contract...

Thank you in advance.

As far as I know, the bank can regularly obtain [Schufa-Auskünfte]. Alternatively, it may receive an automatic notification in case of a negative entry.

As long as you continue to pay your installments, this will not be a problem for the time being. However, it could be (a guess!) that the bank will then want some additional information from you.

If your income situation changes significantly for the worse, you must report it. That’s the theory. As long as you pay in installments, everything is fine.

At our savings bank, it is the case that from a certain volume (>500k) on an annual basis your income/assets are checked. I cannot judge whether and how this is handled elsewhere.

I have never heard of that. How is that supposed to be checked? No one has asked us so far. We do not have our accounts with the Baufinanzierung-Bank.

Depending on the bank and the volume of the financing, you have to submit your creditworthiness documents every year. However, this is unusual in the small loan sector. So always pay the installment and that's it.