Are arbitrarily high special repayments legally possible after 10 years?

Ten years ago, most people probably thought the same after the trough of 3.5% had been passed.

Well, the closer interest rates get to zero, the less likely it is that loan interest rates will fall further. Were there actually such high short-term fluctuations in the past? During the phase when we arranged the construction and financing contracts (a few months), interest rates fluctuated by about 0.5 percentage points. That's quite a lot of money over the term... Unfortunately, we missed the absolute minimum (around April 2015)... (in hindsight, we rather locked in near the local maximum :rolleyes .

I agree with you that significant interest rate cuts are unlikely. On the other hand, what argues in favor of an interest rate increase? And just because we currently cannot imagine negative interest rates on construction loans does not mean that they cannot exist. To my knowledge, last year the KFW had their software set up so that negative interest rates can theoretically be represented. I personally suspect more of a longer-term sideways movement. I have already considered whether to inquire with the bank after 5 years and review the KFW loan to see if it makes sense to restructure it. We are at a "gigantic" 1.4%. With a 5-year fixed interest period, one would probably (at least from the current perspective) reduce the interest rate, and with 10 years I could align it with the fixed interest period of the main loan.

Well, the closer the interest rates get to zero, the less likely it is that loan interest rates will fall further.

But someone didn't pay attention in probability theory. Therefore, due to lack of time, I’ll simply respond with a "Wrong!" today.

Some banks have already prepared for the possibility that negative interest rates could apply to construction financing. Then you would even receive something for taking out a loan. No joke. I consider this quite unlikely, but not entirely impossible.

In Denmark there were already isolated cases of negative interest rates last year. However, due to the lending practices there, this is not transferable to Germany.

Some banks have already prepared for the possibility that negative interest rates could occur in construction financing. Then you would even receive something for taking out the loan. No joke. I consider this quite unlikely, but not entirely impossible.

All banks have already prepared. It is already common (in the commercial sector, not only for real estate) that the customer is charged the negative Euribor (+ bank margin). A completely negative interest rate is more than unlikely, as it would no longer be a loan but a safekeeping of money by the customer, who would receive a fee for it.