Are repayment rates over 10% possible for construction loans?

Of course, every bank profits from it and that is nothing special. Every bank should do that.

well, seriously. if you take out €100,000 and want to finance 5%, theoretically it shouldn't really end up more than 1%. there’s no way to make €5000 from that. so why would the bank do such a thing? the whole paperwork is going to be more expensive soon...

if you have that much money left over every month, why don’t you save the money or borrow it from family or something?!

Huh? I don't understand your logic. The height of the interest rate says nothing about the risk-free margin. And in 5 years with a 1% margin and full repayment, it's a little over 12,500 euros. However, the real margin is probably significantly lower.

Because banks now charge negative interest on "idle" money.

Recently, there was a report that [Kfw] is switching its computer systems so that, in theory, negative interest rates for construction loans are also possible.

Anyone who had predicted this a few years ago would have been dismissed as a crackpot.

Huh? I don't understand your logic. The interest rate says nothing about the risk-free margin. And in 5 years with a 1% margin and full repayment, it's just over 12,500 euros. However, the actual margin is probably significantly lower.

1% of 100,000€ is 1,000€. Over 5 years without repayment, that corresponds to 5,000€. But since you are constantly paying off, the actual amount is even much lower. How you come to 12,500€ is unknown to me.

well, seriously. if you take out €100,000 and want to finance 5%, theoretically it shouldn't really come to more than 1%. there’s no way to earn €5,000 from that. why would the bank do something like that then? the whole paperwork soon becomes more expensive...

if you have so much money left every month, why don’t you save it or borrow it from family or something?!

I don’t understand your post at all. When you get a small loan from the bank, the bank doesn’t make much from it either. It’s the volume of customers that matters. Should you out of consideration for the bank repay a construction loan over 10 years that you could also pay off in half the time? That’s just nonsense!

Best regards
Sabine