Apply for KFW70 separately? 50,000 not considered in the required loan

Hello everyone,

here are my basic conditions briefly:

New building from the developer is under construction

Construction value 274,000 + property transfer tax and notary 293,000
Equity: 63,000
Loan amount: 230,000

KFW70 standard is achieved


My question:

When the financing provider from Dr. Klein enters the data into the calculator, he looks for the best nominal interest rate (15 years term) for 230,000€.

Why not with 180,000€ if I am getting 50,000€ from KFW?

He said it has to be done that way because the financing bank submits the Kfw application. Still, I only want 180,000 from the bank.
That would of course bring a significantly better interest rate.

Is it not possible to apply for the KFW loan separately somehow?

Regards Marko

Because the result would be distorted by €180K. The KFW loan and the annuity loan are considered equally and are provided by the lending bank, not by KFW.

Thank you Musketier! Dr. Klein's husband knows what he is doing :) What a pity.

In our case, a bank loan was always sought in the exact amount actually needed there. However, since the bank also guarantees the KfW loan, this is naturally taken into account in the loan-to-value ratio. In this respect, it comes out the same. Does Dr. Klein then calculate the correct blended interest rate from the bank loan and the KfW loan?

Does Dr. Klein then calculate the correct blended interest rate from the bank loan and the KfW loan?

Presumably, nobody really calculates it completely correctly because only the initial blended interest rate is always calculated. With different repayments in loan parts, this shifts (marginally).

However, since the KfW loan is generally conditioned the same everywhere, this is irrelevant for the comparative consideration. And the Soko on the KfW part is eye-wash and marketing and priced into the rest. It only looks great on paper when you save 0.25%.

Presumably no one calculates it completely correctly because only the initial mixed interest rate is always calculated.

That is clear, it cannot be otherwise, assumptions about the payment schedule must be made. What is crucial is that a calculation method (effective interest rate according to the Price Indication Ordinance) is established that enables a comparison of different offers. I just wanted to point out that here really no one is comparing apples with oranges.