Assessing the affordability of home construction and criticism

because the property already belongs to me

Sorry, but close your eyes and then you’ll know what part of the property already belongs to you. The financing (property + house) will not be approved by any bank once the real costs are on the table. Never! (PS: This is the usual rough construction site tone…) ;)

Sorry, but close your eyes and you will know what part of the property already belongs to you.

The financing (property + house) will not be approved by any bank once the real costs are on the table. Never!

(PS: This is the normal rough construction site tone…) ;)

I speak from experience. We also refinanced a property through the bank. Now we are going to build. Many financial advisors / banks struggled with moving to the second lien because we naturally wanted to use the property as equity. Remaining debt: €37,000 / standard land value: €146,200 / interest rate fixed until 12/2022. Therefore, a forward loan had to be used so that the bank would get the first lien from 12-2022. That’s how we got an interest rate of 1.10%.

If you have annuity loans with fixed interest rates until the end of the loan, it will only work with the bank where the property is. Others will either not finance at all or only with high interest rates.

Sorry, but close your eyes once, then you will know what portion of the property already belongs to you.

No bank will approve the financing (land + house) once the real costs are on the table.
Never!

(PS: This is the usual rough construction site tone…) ;)

And wrong. The property belongs to him and is only encumbered as security for the loan. As the owner, he can dispose of it as he wishes. The bank, however, cannot.

And wrong. The property belongs to him and is only encumbered as security for the loan. As the owner, he can dispose of it however he wants. The bank, on the other hand, cannot.

You forgot the most important addition: ".....as long as he pays his installments." And it is about the land register entry and the financing of the house. The existing entry in first rank is not an advantage, on the contrary.

But if you have annuity loans with fixed interest until the end of the loan, it will only work with the bank where the property is located.

We also had to do it that way.

No bank would have agreed to a second lien.

Our loan for the property runs with ING, and for the new loan for the house, the property was fully considered as equity, despite the outstanding debt.

However, ING was very fair despite the fact that we practically couldn't find any other bank!

We closed with 0.85% for 10 years :)

We had to do it the same way. No bank would have gone into the 2nd rank. Our loan for the land is with ING and for the new loan for the house, the land was fully considered as equity despite the outstanding debt. However, ING was very fair despite the fact that we practically wouldn’t find another bank! We concluded with 0.85% for 10 years :)

The same with us, only that ING wants to finance at 1.6% with 20%+ equity. We are doing it with another bank via a forward loan at 1.1% for 15 years. A pity actually, because it is our house bank.